Down Payment Question - Posted by Heather

Posted by Ronald * Starr(in no CA) on January 28, 2002 at 23:13:06:

Heather---------------

The best places to look for funds of that size at this point in your career is from: family, friends, co-workers, employers, employees, neighbors, co-religious group members. And the people that they know that have money and would listen to their recommendation to loan you the money.

Another possibility, depends upon how much equity you have in your current properties. If you have a pretty big % of equity, you can try the higher-priced lenders such as home finance, beneficial, and the ilk. You could get money secured by the new property, the existing properties, or maybe both.

If you have a good enough income and cash flow from properties to pay off the $13K in a few months, you might consider accepting some of the those credit card applications that come in the mail and use them to help.

You might get an advance on your salary from your employer.

Check your income tax situation. If you have recently bought rental properties, you may have been having a lot too much money being withheld from your salary for income taxes. You might have a pretty big refund due there. Also, adjust your “deductions” so that you don’t pay too much in income taxes this coming year.

Do you have some personal property you could sell for part of the money you need? An extra car, a boat, a lot of bicycles and motorcyles? A coin collection?

A combination of the above might do the trick for you. A $3K here, a $2K there, … it all adds up.

Good InvestingRon Starr**

Down Payment Question - Posted by Heather

Posted by Heather on January 28, 2002 at 10:37:19:

Hello everyone,
I want so badly to become a successful real estate investor. I dream houses in my sleep! I guess that is a good sign…or a real bad one. I purchased Carlton’s course about 3 years ago when I was 24 years old and have purchased 4 properties since. The question that I have is that February 6th I am closing on a 5 plex that the seller wanted 276k for. I offered 245k and they accepted. They had it appraised last week and it appraised for 272k. In the past I have refinanced one house to get the down payment for the other. The owner will carry 20% but I need to come up with 5% around 13k. Do any of you know a way to come up with quick cash? I have a lot of equity built up…but don’t have much time. You guys have helped me in the past. Any ideas would be much appreciated.
Thank you,
Heather

Re: Down Payment Question - Posted by Joe M.

Posted by Joe M. on January 29, 2002 at 24:27:05:

Heather, I think Mr. Starr’s suggestions are excellent. 13k shouldnt be hard to boorow from a private investor if you have equity to use as collateral. Im new at this so sorry if this is stupid but Would the seller carry that extra 5%? Also, I would love to hear more details on this deal if you can find the time. Would you mind sharing the numbers on this place?
thanks and great job! Joe M.

p.s. Your lender wants 25% down on this 5 plex i take it, and you can get around that by haveing the owner carry 20% and coming up with 5%. Do I have that right?

Re: Down Payment Question - Posted by Ronald * Starr(in no CA)

Posted by Ronald * Starr(in no CA) on January 28, 2002 at 23:14:36:

Heather-----------

Also, you might offer a discounted rent payment to some of your current renters if they will pay a month or two in advance.

Good InvestmentRon Starr******