Equate rural properties to C/D class investing.

Hi @John Lutkenhoff,I doubt you'll find many lenders willing to go below 20-25% on a down payment for a small portfolio/project especially as many lenders that I've talked to have started to re-think how they are structuring new deals with the current environment.One method I've seen used in the past to lower a required down payment, although not specifically with a portfolio loan, is to set a chunk of money aside in a CD (certificate of deposit) that the bank/CU holds for a few years until you've proven the ability to repay the loan. 

The big player in town even owns a company that lends hard money.They have been incredibly helpful in getting my business off the ground, they even purchased my first wholesale deal from me and i have taken a few of them to lunch to pick their brain.

One of the major difficulties, when you are pursuing the purchase of short sale property, is the number of players involved.

Hey Stacy, just so you know... we are all kind of different players in turnkey world.

Allstate is not a player in multifamily space.Where is your 4 unit located?

For tax liens, you can go to the tax collectors building and request a cd of all tax delinquents for $250.

Not only did I find it easier to land a deal in a hot market [these big players and cash investors tend to stay away from these 100 y/o pre war built homes-- which on top of cosmetic upgrades, need new mechanicals-- and they want quick returns, money in, money out] but I gained valuable, hands-on experience w/ the full-gut renovation and forced some decent equity in the process. 

So would you consider these type of properties likely to be more C,D, or F? 

We would secure an investor to put up 20% of the purchase price (the down payment) but instead of taking that "cash" to closing along with the 80% from the bank - I have worked out a deal with my bank to put that 20% into a CD and the bank would then loan the full amount and put a lien on the CD.