How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Maverick Your Own Question
Maverick, Attorney
Category: CA Real Estate
Satisfied Customers: 6390
Experience:  20 years experience as a civil trial and appellate lawyer
Type Your CA Real Estate Question Here...
Maverick is online now
A new question is answered every 9 seconds

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.

Welcome to Just Answer! My name is***** give me a few minutes to review your inquiry. Thank you for your patience.

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.

Please Note:

(1) The information I provide is general in nature and for educational purposes only. For example, it may help you identify the scope of receiving unbundled legal services from a local lawyer. It should not be construed as “legal advice” or as the rendition of “legal services” on any subject matter. I am not a specialist in any field. This information may not reflect current legal developments for your specific jurisdiction and is not guaranteed to be correct or complete. No attorney-client relationship is established without a signed written agreement and our communications are not confidential. Please do not act or fail to act based on this information alone. If you need legal advice or services regarding a specific matter, you should consult in-person with a local lawyer who can guide you after reviewing all the pertinent details of your situation. This disclaimer also applies to any telephone communications we may have.

(2) Most follow-up questions are answered with in the hour; however, if I am not signed on, please allow up to 24 hours.

(3) When we are done, please assign a feedback rating.