Updated over 3 years ago on . Most recent reply
Private Money and Creative Financing
Hello BP Community!
I am new to Real Estate investing and was curious about the different strategies in which you have raised private money for a deal? Seeking advice on the structure/layout of the proposal and what terms would be beneficial for both parties, etc... Creative financing has always intrigued me and with interest rates pretty high right now, I feel like that would be the best option. I am a first-time homebuyer, so that program is still an option for me. Would that be the better path? I am currently seeking a House Hack in the Tampa Bay area, and plan to buy and hold.
Any advice would be helpful!
Thank you!
Most Popular Reply
Hey @Bradley Whiteside - private money can be very helpful but is generally more expensive and most useful in short-term situations like bridge loans, a 3-6 month flip, etc. Just my 2 cents - but I would definitely go for FHA / 3.5% down or conventional / 5% down over 30 years. That way you can jump into a house-hack and within a very short time move on to the next property with hopefully good cash flow on the first one.