All Forum Posts by: Nick Lund

@Andrew Postell that helps a ton. I wasn't even aware of the portfolio loan concept. Now that I know what to ask for, I'll start contacting a bunch of banks again. Thanks again--extremely helpful. 

Thank you all for the great advice here. I suppose I overlooked the "seasoning" strategy as a viable option. I'll also start exploring the concept of bridge financing, such as hard money loans. 

@Andrew Postell it's interesting that you mention 15% being the minimum conforming amount. I'm currently closing on a 5% conforming conventional loan in the state of WA, and I've been informed that through a so-called "HomeReady" program that as little as 3% can be put down. Although we're dealing with federal agencies (Fannie Mae), I'm getting the sense that underwriting norms differ significantly across the US, if that's possible. For example, this post https://www.biggerpockets.com/forums/223/topics/28... on the 2nd page of replies states that the OP was able to combine owner financing with bank financing, with no mention of a 3 month seasoning period. 

"Bank:$550k

Am: 20yr

Rate: 4.85%

Balloon: 5

Owner: $110k

Am; 10yr

Rate: 2%

Balloon: 3 year"

I guess it's possible that the owner financing is secured to some other real estate he owns. I'm PMing that OP, and if he replies, I'll update this thread. 

Hi all,

I've only completed one deal at this point but have built a network through other business pursuits, and suddenly multiple people are trying to give me money. Given the hotness of my local market and the trust I've built with them, I could probably raise 100k-200k of private money with minimal effort.

Unfortunately, after speaking with 15+ regional and nations banks, I recently discovered the difficulty of combining private money with bank loanss. Here are some of the limitations I'm facing:

1. Since I already own one property, I can't get another conventional (owner-occupied) loan. That leaves investment loans, with a minimum of 25% down. Not a huge problem, but:

2. Banks require that investment loan down payments come entirely from my own savings--not from gifts or unsecured loans. This preempts the ability to use investor's money toward down payments. 

What gives? Is it possible to combine private money with bank loans? My near-term goal is to purchase a 4-plex, and my longer term goal is to own at least 10 units.

Thanks,

Nick