Mortgages & Creative Financing

Which Type of Loan Will Be Best for Your Next Deal?

Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
161 Articles Written

As you know, there are many types of loans you can get. There are bank loans, hard money loans, private money loans, and even credit card loans that you can seek for your deals. It's important to know all the different loan options that are out there. But it's just as important, if not more so, to get to know how to apply those loans properly in your business.

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The Art of the Deal

I can tell you first hand that applying the wrong loan to your deal can make the difference between a profit and a loss. Things like taking a long-term project like a stabilized buy-and-hold an using what I would call "short term" loans on it — such as private money or a credit card— can kill your otherwise profitable deal. The same goes for jumping through the hoops to get long-term bank capital and use it on a deal that doesn't benefit from that type of money.

Related: 7 Questions Real Estate Investors Should Ask When Selecting a Lender

Related: How to Structure Your Private Loans: An Interview with 4 Real Estate Investors

Watch This Video!

In today's video, I talk about what types of loans you should consider for wholesale deals (yes, wholesalers need to borrow money sometimes, too), fix-and-flip deals, and buy-and-holds (including BRRRR, turnkeys, and apartment building deals). Be sure to check it out. It's full of info on different types of loans and how to match them to any type of deal. Check it out!

Do you have questions about pairing loans with specific deals?

Leave a comment or question below! 

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, i...
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    Matthew Dunn Rental Property Investor from Bradenton, FL
    Replied about 2 years ago
    Hi Matt, great video and very informative! I’m interested in learning more about bridge loans for my first commmercial value add multifamily purchase. Is there a resource you can recommend that explains in more detail the use of bridge lending? Thanks!
    Nishant Grover
    Replied almost 2 years ago
    Matt, thanks for the insight. For turnkey properties (specifically single family homes and townhouses), what loan terms do you recommend? I know 15 year and 30 year are most common.