Investment Property Loans that Require Less than 20%-25%

[LeBlanc]

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?

 

[REWahoo]

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 :

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.

 

[brewer12345]

I think you will be very hard pressed to find such financing.

 

[ziggy29]

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.

 

[calmloki]

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.

 

[pasadenaDC]

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.

 

[calmloki]

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..