Don't forget to consider owner financing the down payment. If you have a lender who has approved an 80% loan for you but you're wondering how to come up with the 20% down payment and the money for the other costs and rehab, consider asking the seller to provide the down payment. You would sign a note back to the seller for the amount of the down payment. The seller could protect themselves by taking as second mortgage on the property for that amount.
The seller gets most of their money at closing and is earning interest on the down payment money. It helps the seller and buyer.
I know of one investor who had a lender willing to provide a 90% first mortgage. The property needed $15,000 in rehab. The investor got the owner to take a note for the downpayment plus the $15,000. The investor walked out of the closing with the money for the rehab in his hand. He fixed the property and resold it paying off the first mortgage lender, the seller and made a nice profit.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125