- OK - so this is NOT a DONE DEAL, but I felt I should write and share this experience.
- I have found [and am in process of making offer on ] a home in an area that is hopping. It needs some work so it appraises much lower than others in the area. With letter of approval in hand, we are set for our loan, but then I discovered our HELOC is actually come due and I cannot use it for this deal...
SO - first I think "I'll ask the bank to open another for $60,000. But my husband thinks that's a bad idea. Then I start asking around for how others have handled getting this last piece in place [maybe a first piece for others]... and finally I take a deep breath and put on my "I CAN DO ANYTHING" hat [it gives me confidence, lol] and call up one of my friends with lots of money.
Background: I thought I couldn't go to any of my "rich" friends until I had at least one deal under my belt. I am a "creative" after all ... would they think I can be a real estate investor and landlord? Well, we all see ourselves one way and then how we think others view us ... and sometimes we are just dead wrong!
I called my friend and told her what I'm up to, what I have on the hook and how much I need to get the deal done. Threw out a few ideas on possible terms [thanks @Nicole W for term rate ideas!!] She said her husband had been discussing a deal like this w/someone and it fell through - gave me his cell # and we had a terrific conversation. I'm going to send him my very impressive BP Analysis and we will be having a discussion shortly!
Filed under the heading: What's the worst they could say?
Best of luck! Please keep us posted on how this turns out! I think most of us know that "rich" person or couple but don't want to be known as the guy or gal that goes and asks for money.
Getting Credit Partners for deals is important, even getting started.
JVs with Sellers
JVs with Business People, not REIs
JVs with REIs
Remember, you can avoid banks on acquisition!
For anyone watching this ... I did not end up getting the property. I also did not end up partnering with the friend who was interested - his accountant said the timing was wrong. We will revisit a partnership later. But it did get me moving and showed me that it isn't that hard to ask. I am on the prowl again for a good deal, as well as asking people I know to partner. Be brave!
This is the funniest thing. Just remember you are not asking them for $$$. You are giving them an opportunity to make $$$. We often do not want to ask our rich friends or family thinking that they will think less of you. If you have a great investment opp then why not share it with those that you want to do business with. Sorry the deal did not work. Great learning opportunity and I know your success is imminent.
Congratulations on taking the first step. Stick with it, and you will succeed. I love your attitude.
Best of Luck!
keep up the creativity.one day it willl all fall in place with persistence
Inspiring post! Thank you for sharing your experience!
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