Hi, My wife and I have been investing in RE for about a year now, concentrating on single-family homes. We buy only in central Oregon, as that is the area we are familiar with. We've been buying using our own cash, using bank financing (10 to 20 percent down, interest-only or neg am loans). The banks love us because my wife's credit is 780, mine is 777, we have approximately 100,000 in savings in the bank, an additional 130,000 in a SEP-IRA, and about 190,000 equity in our personal residence. So I've been thinking, why should I pay the bank additional money for down payments when I might be able to get a better deal through hard money loans. If you are a hard money lender, let me know if you can provide us a better deal than 10 to 20 percent down. My interest payments to you will also need to be lower than what I can charge for rent. Around here, with the types of homes that I buy, the rent is anywhere from 700 to 900 a month. (The types of homes I buy are five years old or newer, basic entry-level design, good condition, not fixer-uppers, with an eye on selling one to three years down the road.) I'm open to creative ideas, such as splitting profits when I sell, etc.
