Missing out on deals due to lack of funding

Starting Out
6yFollow

Missing out on deals due to lack of funding

Mohi Naamani
Member since 2020 · 4 posts · 1 vote

I'm a brand new REI. since 2016 I have attended numerous classes and seminars, heard hundreds of podcasts (specifically on BP) but never had the guts to make the move until about a month ago.

I've managed to find a couple of REALLY good deal but was not able to get funding quick if at all due to a lack of cash reserve (my own money) and the lack of experience, therefore, I've missed out on a couple of outstanding opportunities.

Can anyone offer some advice or insight on such a situation?

Thank you in advance!

0Reply
38 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Jonathan Greene:

You can never wait to get funding until you have a deal. You need to spend all of your time confirming funding based on your assets and credit score now so when you find deals you can bid freely. Maybe having the pre-approval or line of credit or hard money letter is the thing you were missing. What's looking worth if you aren't sure you have the funding to get something?

5 years ago on BP the running mantra was dont worry about cash you just worry about the deal the money will find you !!!

I personally never subscribed to that line of thought and well today its for sure not reality.

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
2Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    @Mohi Naamani cash flows to good deals.  You can try hard money, but best to set all that up in advance.  If you don't have enough to work with then seek out partners for your deal.  You will find them at your local meetup groups.

    Good Investing...

    [email protected]949-625-4533
    1Reply
  • Christopher G.
    New to Real Estate · Pearland, TX · Member since 2020 · 32 posts · 15 votes
    6y

    Just as @Joe Homs said, I think it would be best for you to try and network as much as possible. When everybody is able to meet up again, I would join your local REIA and build relationships. You maybe be able to partner with another investor. And hard money is more expensive but it can be worth it to get your first few deals (if the numbers work in the deal). After you have a few deals, funding will be easier. Be confident and go for it!! Glad you decided to get off the bench and into the game! "Scared money doesn't make money"!! You can do it!!! Good Luck to you!!!!

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    You can never wait to get funding until you have a deal. You need to spend all of your time confirming funding based on your assets and credit score now so when you find deals you can bid freely. Maybe having the pre-approval or line of credit or hard money letter is the thing you were missing. What's looking worth if you aren't sure you have the funding to get something?

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jonathan Greene:

    You can never wait to get funding until you have a deal. You need to spend all of your time confirming funding based on your assets and credit score now so when you find deals you can bid freely. Maybe having the pre-approval or line of credit or hard money letter is the thing you were missing. What's looking worth if you aren't sure you have the funding to get something?

    5 years ago on BP the running mantra was dont worry about cash you just worry about the deal the money will find you !!!

    I personally never subscribed to that line of thought and well today its for sure not reality.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Mohi Naamani
    OP
    Member since 2020 · 4 posts · 1 vote
    6y

    Thank you all for your advice and input, it is greatly truly appreciated!
    I've also been advised to get a revolving business line of credit to fund the 20% down that most hard money lenders are requiring nowadays (especially for new REI)

    What’re your thoughts on lines of credit? And where would one with lack of experience such as myself get one? 

    My fico credit is around 708 but my experian Credit score is 745.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free