Brandon Turner was right
OK, so quick background on myself. Been in construction most of my life, I’ve flipped eight houses in the last 8 years and built one spec house. I definitely know my way around a hammer but the financing has always been a struggle for me.
I have used different types of funding sources from private money to hard money to my own money and it’s always a challenge to find the money when you have a good deal, which is what prompted me to share this.
I have a friend who has loaned me money in the past (decent rates 12 percent interest and three points. She also lets me loan on construction costs as well which has been awesome) I contacted her a month ago and asked if she still had money to loan because I was looking at a project to buy.
She said she was good to go so I went shopping and found an amazing deal, a two unit property that’s going to cash flow $800 to $900 a month. I’m kind of at that point where I’m ready to start using the BRRRR method instead of just flipping and start creating some residual income in my life. So I went into escrow and put some earnest money down on the house and start contacting my subs to get numbers on the rehab. Then I went to her and gave her a nice presentation on what I needed (thank you bigger pockets- it’s so easy now) and she said......no. She was in the middle of building a house and hadn’t sold her previous one and didn’t have the funds.
Now some of you may of been in this position where you have an amazing deal you’re about to lose $4000 and you don’t know what to do, and it sucks. You start questioning yourself, you start questioning the timing, you start wondering if the deal is any good and you start to panic.
Fortunately for me I had a little case of insomnia a couple nights before and I’ve been listening to webinar replays where Brandon Turner talks about his magic question “Do you know anyone who has money to loan?”
This is the very question I asked my realtor the next day when I found out that the deal was about to fall through because I didn’t have the money. He said he would do some checking around and get back to me and within two hours had two different private lenders that wanted to work with me and actually had way better terms than what I had before. All because I asked one little question.
So the moral of my little story is not to give up, stay plugged in to bigger pockets, get educated, and for all that’s good and holy in this world if you aren’t a pro member yet spend the paltry amount of money they’re asking for and pony up- it’s worth the investment. It just saved me thousands.