I need $6,000

[AIR]

So as I come closer to getting my first deal under my belt I come across a problem... money! Since I plan to buy and rent not live in I learned I must put 10% down and also pay at a higher interest rate. So I need more cash, what should I do? Get a piggy back ie. personal loan? Borrow from someone other then conventional lender?

[Dan Auito]

If you have noooooo cash maybe consider an advance on one card, then pay that card off with one of those 12 month no interest teaser rates then refi at the end of one year to pay most all of the $6,000 high interest credit off by rolling it into the new 30 year mortgage which hopefully would be based on a higher value than it currently is now.

Don't know if your looking for complicated ways to get 6 grand but this, would be one.

[Aldo]

A bit more detail would be helpful. Though Dan's suggestion is a workable option, there may be others. My first question would be whether you found 90% financing, as it appears. If you did, grab it (if the numbers work) and have the seller take back a 10% second mortgage - if the lender agrees to that.

Most lenders require borrowers to have some of their own (not borrowed) cash in a deal and they have the ability to check current account balances and recent account activity; however, if Aunt Emma gifted you with $6K, the lender couldn't know that and you'd have your $6K.

Here's where the $6K really comes from (if possible). New loans and/or credit card debt usually does not appear anywhere until 30-90 days after the transaction. If qualified, get the $6K from a loan or credit card at least one week after applying for the mortgage to allow time for the lender to pull your credit report. Once they have it, they won't recheck it.

[TommyOH]

There's also a little idea I use from time to time to entice buyers that could also work for you. It's called a "down payment assistance program". These are usually run by non-profits, and are very widely accepted as a down payment source. They will typically "grant" 3%-9% of the purchase price to a buyer to cover down payment and closing costs. They are in turn wired back their gift plus a small administrative fee by the seller from the proceeds.

Try searching Yahoo or Google for "down payment assistance program". You'll be surprised at what you find ;)

[Randy (SELA)]

You still haven't spoken to a banker or a mortgage officer? They should have informed you of the 10-20% down for commercial loans

[AIR]

has anybody used a personal loan before as the down payment. The rate is 10% not bad...

[SlumLordMike]

American Independence, LLC "We Buy, Rent, and Sell Real Estate" www.RKRHOMES.com

I mean no disrespect whatsoever, but with this kind of signature one would assume you might know the basics of borrowing. How can we help?

[Aldo]

has anybody used a personal loan before as the down payment
More times than I care to count. My very first purchase was financed by a personal loan from a credit union. That seed germinated and grew to the point when I paid the full asking price ($20K) on a credit card with room for more.

Geez, does that sound lovely, or what? My advice is not to do this until you've been around the block a few times. I stuck my neck out and was really lucky, like in rarely lucky. If I hadn't lucked out, I'd be eating in soup kitchens instead of serving in them.

[BrandonModrov]

There is a place www.prosper.com that you might be able to get a small loan like that from.

Take a look can't hurt. :)

[AIR]

has anybody used a personal loan before as the down payment
More times than I care to count. My very first purchase was financed by a personal loan from a credit union. That seed germinated and grew to the point when I paid the full asking price ($20K) on a credit card with room for more.

Geez, does that sound lovely, or what? My advice is not to do this until you've been around the block a few times. I stuck my neck out and was really lucky, like in rarely lucky. If I hadn't lucked out, I'd be eating in soup kitchens instead of serving in them.

I dont understand what you mean, you werent able to pay the loan? or you paid it and the interest ended up costing you and in turn u didnt make profit

[Aldo]

In re-reading my post, I can see where it could appear that I was talking about my first deal going south. The opposite is true. I paid $500.00 for that inner-city SFH, spent $1749.55 to make it livable, and sold it a few years later for $13,500 after collecting well over $25K in rents.

When I said "That seed germinated and grew" I was referring to starting out in investing with a personal loan. That personal loan/investment (seed) germinated and grew over the years into a successful investment career which enabled me to pay cash (via credit card) for a property.

Hope that helps.