All Forum Posts by: Norman Perkins

I am reading, studying the market, watching interest rates, basically doing everything I possibly can to get started in this, but I feel like I am spinning my wheels. I apply for an equity loan to use as my down payment on my first deal, but my debt to income is too high so it was not approved. I am really getting frustrated and that is not what I need right now. lol....anybody out there with some ideas on creative financing to come up with a down payment on a really good property?? I have really good credit, just my debt to income is a little high. Specifically, credit card balances. That is all that is stopping me from getting started.

When a hard money loan is originated it is asset based, usually 70% LTV or better (plus repairs) so if a borrower defaults, the lender gets the property and reaps the benefit of the flip. Just trying to see where the hard money lender's risk is (or was).

I was recently searching for a hard money lender in Florida and came across a company that requires a 10% down payment. I have in the past dealt with hard money lenders and never heard of a down payment requirement. Tat was in 2006 though. Is it standard practice today to pay 10% down for hard money or am I right in thinking that it defeats the purpose. If a buyer as 10% for a down payment, why use hard money in the first place?

Looking forward to interacting with everyone here!! I am new to bp as well as the REI community so I will be looking to you for advice!!! I am currently planning on talking to the bank about the possibility of using some of my equity in my primary home for a down payment for my first investment property. Any thoughts are appreciated! Thanks guys!!!