20% Down
I'v purchased properties with 4 units max. I would like to purchase properties with more than 4 units however the 20% down has been a barier. Any financing tips? I'am in Los Angeles Ca, Also any suggestions on local REI groups?
cross colaterization
creative finacing techniques
it is possible but it gets harder...cash is king!
will lenders consider a seller who carries a second for 10% part of the 20% down. Assuming I put up the other 10%.
Assuming you still have 4 plex's You can refi/hard money loan on those. I am sure you have thought of that. If you need an owner carry, and it could mess with your loan, consider having the owner carry the paper attached to one of your other properties. If you do not like the idea of that, have that note transfer back to the prop you are buying after 1 year of on time payments.
Note: I may be going to court because of this technique. Make sure you first take a note on one of his properties, and the note transfers after you have received your cash. Otherwise, he may renig after he gets all his cash. I trusted this person, and it could cost me. Trust in real estate should be limited to things like trust deed.
[addsig]
What you are talking about is an 80-10-10. Done all the time w/SFDs, Comml Lenders are sometimes more picky & want to see more of the Buyer's Money on the Deal.
Suggest: Having seller carry on your existing ppty. Run 2 concurrent escrows. He is seller in one and lender in the other. You use proceeds from loan to purchase his ppty.
W/SFD?????
pmatheson1
I like that idea. Good one.
w/sfd =with single family dwellings
Technique= Concurrent escrows; one cannot close without the other closing also. (Don't inform lender of 1st loan in sale escrow.)
One escrow officer can handle both escrows or could have 2 escrow officers, each handling one.