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Creative ways to raise funds as a beginner
Hello everyone,
I remember reading in Brandon Turner's book that some people hunt deals for real-estate investors and was wondering if I could do so as practice for spotting deals (and a way to raise money for down-payment). The assumption is that I'd only get paid if the house gets sold and, while I would try to find a good deal, the responsibility of it being "good" would lie with the buyer analyzing the house themselves.
Is this a feasible idea?
Any other creative ways to raise funds?
This is 100% feasible. In fact, if you bring me a good deal I will be your first customer in line.
Quote from @Evan Alexakos:
This is referred to as bird-dogging or wholesaling. A wholesaler will find a property and get it under contract, then they try to "sell" that contract to an investor for a markup while leaving enough meat on the bone that the investor feels it's still a good deal. For example, you find a fourplex that is worth $400,000 but the seller accepts an offer of $370,000. You give it to the investor at $375,000. You get $5,000 for finding the deal and the investor gets the property $25,000 below market.
A bird-dog usually gets paid a flat dollar amount or a percentage for each deal found. Maybe you get 1% of the sales price ($3,750 for a $375,000 property). Or maybe you get a flat fee of $XXXX.
My recommendation is that you network with investors and start building a buyer's list. Figure out what each investor is looking for and what they are willing to pay you for the deal. If one investor offers $500 for a deal and the other offers 0.5% of the sales price, find a deal and offer it to the investor that's willing to pay the most.
Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.
- Investor
- Austin, TX
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It's a good idea, now you have to find the deal. Which is a lot harder than finding the money
- Real Estate Broker
- Houston | Dallas | Austin, TX
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Today’s investors should be equipped with not one but several financing options before approaching a deal. Going straight to a traditional lender for a mortgage may seem simple, but this approach will not always guarantee the best loan terms. In many cases, finding the best financing will require investors to get a little creative. That being said, there are so many unique ways to finance real estate it can be hard to fully understand what’s out there. The following creative financing options are a great place to start:
- Cash-Out Refinance
- Home Equity Line Of Credit
- Personal Loan
- Seller Financing
- Lease Option
- Self-Directed IRA
- Hard Money
- Private Money
- FHA Loans
- Crowdfunding
- Cross Collateral
All the best!
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Real Estate Agent Texas (#736740)
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- Podcast Guest on Show #469