First stop on the financing quest

You utilize every resource available to you. I began with my circle of influence.

My first stop was a friend and business partner who indicated an interest in putting about $25,000 to work. If he's willing to do it, the amount would be sufficient for the 25% down payment if I could get a bank first mortgage. In fact, it would be enough for the down payment and a portion of the renovation costs. No commitment yet.

My second stop was the realtor who sold me my personal residence. He used to play professional football and is still connected to that industry. Like I said...you use every resource you have at your disposal! This contact is really promissing because of his connections. He had indicated on a number of occasions that he knew players who were interested in real estate but who didn't want to buy properties themselves. So, I candidly mentioned I would be interested in talking with them and that I would be interested in amounts anywhere from about $18,000 to approximately $100,000 secured by the property.

My job is to keep on top of him - apparently pro football players are exceedingly busy, even off-season, and he suspects it will take a while to connect with any of them.

I also contacted a mortgage broker in Palm Springs who was supposed to be a "creative" lender who could put deals together where others couldn't. When I explained my situation, he didn't skip a heartbeat in telling me he couldn't deliver. While he did have investor financing that required 25% down, the number of properties I hold disqualifies me for his financing sources. He doesn't do FHA 203K loans, so I need to look for another lender for that. He does do USDA loans, but knows nothing about what I believe is a rabbit in a hat I want to pull - namely utlizing a loophole in USDA loans set up for non-profit corporations. You see, many (not all) USDA loans are for first-time home buyers. But, there is a provision for non-profits who provide reasonable housing to apply for loans. Between this being a somewhat historic rehab, somewhat rural, and that I can rent it to seniors or modest-income folks, I think there's a chance for one of those loans if I form a non-profit corporation. Alas, he knows nothing about that avenue, so I have to do some groundwork there first.

So, out of the gate, I've planted two seeds for private money, but no commitments yet. One lender seems to have been a waste of time.

Week one ends with nothing solid.