Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Investment Property Loans that Require Less than 20%-25%
Old 09-05-2009, 02:04 AM   #1
Recycles dryer sheets
 
Join Date: Nov 2007
Posts: 53
Investment Property Loans that Require Less than 20%-25%

So here I am again, with about $20K burning a hole in my 1.4% savings account at ING Direct and I want to buy another property. This time I'm looking at multi-unit properties.

I'm getting discouraged as I can't seem to find any financial institutions that offer investment property mortgages with less than 25% down. Can anybody suggest a way around this?

I currently own a home in N. Las Vegas valued at $165K with $142K left on the mortgage. I have about $50K in my TSP and $20K in my Roth IRA. I max my TSP and Roth monthly and save an additional $2k per month that goes into the ING account.

Suggestions?
__________________

__________________
LeBlanc is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-05-2009, 06:30 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,103
Quote:
Originally Posted by LeBlanc View Post

So here I am again, with about $20K burning a hole in my 1.4% savings account at ING Direct and I want to buy another property. This time I'm looking at multi-unit properties.

Suggestions?
Talk with Martha :
Quote:
Originally Posted by Martha View Post

I live in an apartment in a four unit building I own. The building generates cash. It is an income producing asset. It would produce more income if I didn't live there, but I would have to pay rent, where now I live here for nothing. The place is worth 300,000.

BTW, my building is up for sale.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-05-2009, 07:30 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I think you will be very hard pressed to find such financing.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 09-05-2009, 09:46 AM   #4
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
My two immediate thoughts:

1. In this environment that will be hard to find. Maybe three years ago, but not now.

2. I can't imagine too many properties with this much leverage generating positive cash flow.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 09-05-2009, 09:56 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
We do that kind of loan every now and then. Thing is we need to believe it is worth about twice it's sale price, the loan is short term, the interest is about 12% or better, we charge points, and Vinnie does our collections, followed by Dewey Cheatum and Howe filing foreclosure papers.
__________________
calmloki is offline   Reply With Quote
Old 09-05-2009, 11:30 PM   #6
Dryer sheet aficionado
 
Join Date: Sep 2008
Posts: 40
Credit is tight, I'm hearing it from everyone these days... even my RE investment buddies. It ain't pretty but private lenders will loan for 8% or so and upwards from there. But any lender (ie. not loan shark) worth their salt will still run credit, job history and expect 6 months reserve even for the higher rate vs. banks.
__________________
pasadenaDC is offline   Reply With Quote
Old 09-06-2009, 10:35 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
Quote:
Originally Posted by pasadenaDC View Post
Credit is tight, I'm hearing it from everyone these days... even my RE investment buddies. It ain't pretty but private lenders will loan for 8% or so and upwards from there. But any lender (ie. not loan shark) worth their salt will still run credit, job history and expect 6 months reserve even for the higher rate vs. banks.
True that. On loans we have out now we are in a first position with the second foreclosing(buyer has filed bankruptcy, which has delayed the process), second position and have sent demand letter and a foreclosure guarantee is being ordered on Tuesday on another loan, and loaned to an LLC that is two months behind on payments right now. Other loans that are due to payoff soon are waffling badly on being able to pay off. One can only loan at high rates so long before you run out of money if people don't pay you back. We shoulda insisted on reserves... would have delayed the outcomes..
__________________

__________________
calmloki is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Investment in Phoenix property Martha FIRE and Money 22 06-12-2009 09:56 AM
Your thoughts on this as an investment property? bank5 FIRE and Money 16 04-15-2009 01:31 PM
Investment Property: Need Advice Keim Young Dreamers 28 09-20-2008 10:09 PM
Alternative investment: Private mortgage loans calmloki FIRE and Money 31 03-19-2007 11:03 AM
Investment Property Sale Taxes ferco FIRE and Money 12 07-08-2006 07:36 AM

 

 
All times are GMT -6. The time now is 05:11 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.