BiggerPockets

We have our own fund that we manage and like many on this forum we treat it as a serious business. All businesses require some level of investment but not all businesses are sole proprietors. Many of us have established partnerships that work well year after year.

If it's your first deal and you have some cash then self finance. If cash is tight, but you have the expertise then find a money partner and offer to do the leg work for a split of the profits. You can put some skin in the game to show your serious.

My suggestion for your first deal would be to stay away from loans/hard money. Once you have a track record of a couple of deals the money will find you.. in the meantime build some "local" relationships in an area where you want to buy. Find a deal to partner on and then pitch it at a local meeting - if it's a good deal the experienced people in the room will recognise that... and if it's not a good deal they will tell you so - either way you win.

Know your strengths and play to them. Remember that you have to look at a lot of properties to find one that will work. But when you find it, because you've looked at so many, it will be obvious to you that it is a great deal. The key is control - once you control the property (contract/earnest money) if it is a great deal the money generally appears.

Greg

Hi Chris,

I get all my money for rehabs from private lenders. They lend full purchase price and rehab funds.

It's taken years to develop, but right now I have well over 1.5 million dollars out from 12 different private lenders. This money is spread over about 10 different properties. Most are rehabs but a few are longer term holds.

The hardest part is getting your first private lender, as it will probably be your first deal and most people want to see a track record. I started off approaching friends and family first, and ended up having one of my best friends dad fund my first rehab.

I am fortunate enough to have a large local bank that will work with me. My officer is a freind of a feind plus found out the branch manager is in my Sunday School dept. They provide purchase and rehab funds up to 80% of ARV / comps. Haven't tried them in a few months. But, I stay in contact.
Don

Originally posted by Mike V

Rehab money is held at a local title company that handles all the dispersment including the 1099s at the end of the year.

Is this typical? Seems like an unusual job for a title company. This coming from no experience ofcourse.