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Maverick
Maverick, Attorney
Category: CA Real Estate
Satisfied Customers: 6390
Experience:  20 years experience as a civil trial and appellate lawyer
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We are looking to team up with a couple of people to invest

Customer Question

We are looking to team up with a couple of people to invest in a multi unit property (possibly 5 to 15 units depending on what state we plan to invest in) and have a loan question. The typical home loan from banks requires that the buyers pay ~20% downpayment. I heard from some people that it's different with investment properties. The banks sometimes will lend 90% plus of the loan if you can prove / show them (in your business plan etc) that the net income is significant. Is this true? If so, is it rare or is this a common practice even among big popular banks (like bofa, wells fargo)?
Submitted: 5 months ago.
Category: CA Real Estate
Expert:  Maverick replied 5 months ago.

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Expert:  Maverick replied 5 months ago.

Many private lenders will extend loans for investment properties with less than a 10% down payment but will require the addition of private mortgage insurance or PMI on the loan. So, while proving up a good cash flow stream from the investment will help, it may still not be enough to get the loan without PMI. Also, your chances of getting such a loan increase as you move away from the conventional lender such as big banks. You may want to consider hard money lenders in your area. Here is an example of one that I just found on the web but know nothing about.

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