Buy and Hold

[Roc P.]

Can anyone recommend any strategies for buying and holding if your short on cash. I'm trying to figure out alternative methods instead of using bank financing as of now. Thanks

[Will Barnard]

If you are apt at finding and managing deals, you can bring in an equity partner. They put up the down payment and arrange bank finance and you locate, structure, and manage the deal for an agreed upon split. To utilize this strategy most effectively, use an entity, an LLC partnership is recommended for rental properties.

If you are looking at projects requiring rehab, you can take private money loans at set interest rates (similar to a HML) use their funds to rehab the project, then refinance and cash them out. This strategy may be a bit more difficult given our current lending crunch, but it still can be done.