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Blog ID : 149848
Are the down payments in your investment properties draining your available cash?
Could you do more deals if you had access to unlimited funds?

Highly successful real estate investors learn and understand the power of leverage and the secrets to 100% financing for their investment houses. Hard Money Lenders can fund deals that banks would never consider and Private Lenders can offer ideas and solutions that are outside the box of mainstream lending. One of the secrets to 100% financing is understanding that everyone must have “skin in the game” and yes, that can be cash but there are other ideas below.

You need to have “skin in the game.”
->Generally, an 8-20% cash down payment is sufficient. This can be your money, or via a co-investor friend of yours. This makes the process pretty straight forward.
‡->If you are low on cash or just prefer 100% financing some other ideas are:
1)Cross-collateral of a non-owner occupied property you own or someone you know owns and they are willing to put this up as collateral.
2)Subordinate seller carry-back – meaning the seller of the property is willing to take back a note and deed of trust, or mortgage and wait for his profits until you sell the home after rehab.
3)Allow the lender to place a hold on a CD that you own or set up which can sometimes be used as collateral against your deal.
->If you are highly experienced and can prove it the lender may accept this as your “skin in the game”

Category : Finance
Tags : investment, financing
Partner Blog: No
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Hits : 205
Date Added : 14-1-2015