How can I find financing for a 4 unit building without having to put down 25%?

Have a few opportunities on 4 unit buildings with good cashflow, but all banks are telling me I need 25% down. I want to put down maybe 10% max. What options do I have for 4 units?
In Buying Property - Asked by John W. - Mar 4, 2009
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tracy l.
Owner/Investor
Clearwater, FL

1) Equity partner with private lender. Negotiate cash flow and upside.
2) Funding from private lender. Negotiate terms and give mortgage/deed of trust.
3) Contact manager of self-directed IRAs like Entrust and ask to put you in touch with anyone who is looking to invest IRA or Roth IRA funds. Interest earned from Roth $ is tax free so it can be very attractive if you understand how it works and can educate people who don't already have IRAs.
4) Contact qualified exchange intermediaries. They will have people who need to exchange into other properties. They buy to satisfy exchange and you could manage and take cashflow then equity share in future. Maybe they give you an option to buy at today's price in 5 yrs, etc.
5) Talk with your CPA and ask to refer you to higher net worth individuals seeking to get a safe, secured, steady return. They will know some.
6) Negotiate seller financing/subject to based on debt on property.
7) Get private funding, buy plex and then sell property to another investor with owner financing. Wrap loan with at least 2 percentage points spread and enjoy cash flow without management.
Notice none of these ideas involve banks. It's better to exclude them from the beginning and you will get much more creative and will be able to create terms that favor you. There is private money everywhere looking for parking spot. You just have to let everyone know what you do and that you are offering a good rate of return on cash flowing investment property.

Mar 4, 2009
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John B.
Broker/Agent
Naperville, IL

Have the owner carry back a second mortgage.

Mar 5, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

Buy cheaper property.

Mar 9, 2009
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