Creative financing options

6 Replies

Hey guys, I’ve been on bp for a year now I just got my first deal a 4bd in philadelphia and have it rented. I’m looking to get my second house later this year. Obviously when starting out available money is one of the hard things to navigate. I wanted to know what creative financing options you guys have? My buddy does 5-10% down with higher interest, I’m looking for something like that. My goal is the least amount out of pocket. Let me know thanks!

You could always try to get private money.

My buddy does this with friends and family. They provide a 12-month loan at 10% and he uses it to acquire properties. Then he can refinance and cash out and pay back his investors. You can provide quarterly interest payments, bi-annual, or whatever structure is most desirable for your investors.

Use your first property (pictures and numbers help) to solidify your experience and knowledge. You'd be surprised how many people would happily put their money in a guaranteed 10% return as long as it is secure.

Thanks Alex,

I could utilize those resources that was something I kind of wrote off. It’s one of those things I want to do everything myself. But I think I need to look at it more as I have an opportunity for you rather than I need something from you. I’ll definitely think about that option thanks!

I think it would help to look at private money as not the act of 'taking.' You're providing an alternative investment vehicle for people. You're helping them to make money as well as helping yourself in your pursuits. It's a win-win arrangement.

Find Rehab projects where you can get 90% of the LTC and then refi out once the project is complete

@Matt Tallent Have you spoken to any mortgage brokers about your needs? Or Hard Money lenders? I found it very beneficial to build relationships with these types and know all your options going forward so you can close on any deal you may find. I can give you the names of some of the brokers/hmls I deal with, just pm me if interested.

I’ve done hard money on deals and rate/term refi when rented rehabbed and got all my money out. But if you have no money, a private investor putting up 10-20% and refi would be the way the go.

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