How to Choose the Best Source of Funding for Your Next Real Estate Deal

How to Choose the Best Source of Funding for Your Next Real Estate Deal

1 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

DeRosa Group’s YouTube channel

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The biggest question I get when meeting new and experienced investors in this business is, “Where do you find the money to fund your deals?” It is important to know the different types of funding sources to use on your next buy and hold and your next flip.

Related: The Power of Private Financing: 3 No Money Down Strategies That Actually Work

However, it is even more important to know when it is appropriate to actually use these various funding sources. You can be badly burned (and lose a lot of money) if you use a funding source for the wrong deal. In today’s video, I review some of the key funding sources from traditional lending to private equity to private loans. I also share how to best utilize each type of funding source.

Let’s get a discussion going. What did I miss? What is your criteria to determine when to use the various funding sources?

Thanks for watching!