about OPM please help me.

[Aldrin Meneses Quijada]

GOOD DAY BP!

i wanted to ask question, 

for example;

there is this property that is listed for 254k with rehab cost around 9000 usd and its ARV is about 300k. now i need, 263k i wanted to use other peoples money. what is the best way to finance this property without using any of my personal money?

PRICE: 254K

RC: 9000

ARV: 300K

BORROW FROM HARD/PRIVATE MONEY LENDER: 263K

RENT IT (2% RULE): 5260

REFINANCE THE PROPERTY: 300K x 80% = 240,000

now;

240,000 (cashout refinance) minus 263,000 (borrowed from hard/private money lender) = -23,000 i think its a bad deal.

your help will be much appreciated! thank you in advance! 

[Chris Seveney]

@Aldrin Meneses Quijada

As a private lender I would not lend on this deal.

I want the person to have skin in the game and if they do not I don’t take them seriously as anyone with no money zero experience can try and get a loan.

You can try calling people but only responses you are gonna get are from scammers

[Nathan Gesner]

Quote from @Aldrin Meneses Quijada:

I know there are books, podcasts, forum posts, and guru courses teaching how to invest with other people's money, but I don't recommend it. You are borrowing from Johnny so you can borrow from Jimmy. It's a recipe for disaster for someone with no experience.

Your deal doesn't make sense. You can't cash out enough equity to pay off the money borrowed. And what if your estimate for repairs is off? What if the ARV is off? The market is cooling and this home may be worth 10% less by the time you try to sell it which would put you under water.

If you want to invest wisely, increase your earnings, live on a budget, sacrifice, save up, and put your own money in. Once you've proven yourself, then you can expand into more creative solutions.

[Brian S.]

@Aldrin Meneses Quijada

Where can you buy a property for 300k and get rents over 5k? Unless it’s a quad in a D class area that could get that fully occupied. Not trying to be rude, honestly just curious. And a repair cost of 9k seems offly low. If this is an add being offered by a wholesaler I would be very skeptical. There are some good ones out there that provide a great service but some are almost comical with their blatant lying about arvs and repair costs hoping to fool an out of state investor and anyone arguing that I would be concerned is trying to do just that. Good luck out there.

[Eliott Elias]

Deal sounds tight, I wouldn’t pursue it.