Need Advice on 100% Financing of Bulk Purchase

1. you can ask the owner is he/she is willing to do owner financing on the property.

2. You can find a private money lender to fund a 100% of the deal for a good return on investment for them.

3. You can find a parter that would go in on the deal with you but put all the money and you do all the work to make the deal happen.

Thanks. Do you know any private money lenders for a deal like this? I was also wondering if there were any banks that would 100% finance this because of the over 30% equity and if I used more property as collateral?

Thanks again!

You have been away for awhile and we are glad to see you back!

Ray hit some good points as HOW to do this deal.

Questions:

How did you come up with offer price?

repairs needed?

What fee do you want?

What are rent rates and HOA fee and What's included?

Has your offer been accepted?

Do you have buyer/partner? If so, what profit/% do they want?

Lots of ways to put this together, but you Have to Know Values and buyers needs.

"Several condos" is How many?

whats the Value and Rent rate of Each?

ROI/Profit to who Buys it?

You have to Show your buyer/Investor WHY this is a great deal.

SHOW Me Why it's a good deal and I'll buy it!

Use tool below.

- As Ray and Mike stated above, very good points.

- Regarding your question on finding private lenders willing to finance 100% of the deal, two points:

1) Private lenders are people you personally know. Reach out to doctors, lawyers, CPA's etc that you know and pitch your deal. Hard money lenders on the other hand advertise, and typically require 25% or more "skin in the game" for the deal.

2) Remember that if the properties don't need any work, when you purchase them at $499k, that becomes the new comp. They are now worth $499k because that's what someone was willing to pay for them. So there's not 30% equity instantly. Now if after a year the areas comps are still in the $720k range, you may be able to refinance at that point and pull out some cash.

Hope that helps and good luck!

- Tom

the SEC rules. One good rule of thumb is that you have had at least three (3) points of contact with them, so that you don't just ask someone for money to back these deals.

Thanks Mike, Tom, and femailceo. My first time posting and it is really encouraging seeing the support on this message board!

Happy Holidays!

Thx Tom Ray & Tammy, good info. Also you could go to your REIA's & look for private $ lenders there especially gap funding as they call it to make up for the 20%=25% that lenders usually require you to put down.

Another idea is why don't you just wholesale them if you can't find the funding? I am wholesaling to build up my reserves to then buy rentals. just a thought.

Private lenders are one option. Hard money loans are another. They typically work funding off market value or ARV.

Conventional lenders on the other hand fund off the purchase price regardless of the perceived equity. Even if the appraisal comes back indicating 30% equity, a lender cannot use that as a down payment. It is just how the system works.