Re: Funding

4 Replies

Hello,

If you find a great deal, are there private money lenders or private money partners out there that will loan up to the full amount? I don't mind doing a 50/50 fix and flip if there are people out there that will put up the full amount of the purchase price of a discounted property? 

Edwin 

Yes, for a great deal, the money will always find you. The numbers have to be tight, but if they are, you generally won't have any issues finding partners. 

There is a section here on BP for posting stuff like that, if you are specifically requesting partners and such, but I believe it requires a Pro membership. Get to know the site, spend some time talking to people, and the money will come to you if you have the deals. 

Hey @Alexander Bigwood Thanks for the advice!

Is it possible, yes. 

Will it take work + time, definitely yes. 

The key is that this is a relationship business. A human business. 

For 100% financing, you will want to demonstrate that you have management under control through your team. This includes any rehab construction and property management. To help your funding partner make a quicker decision, try using a credibility kit. Here's a good thread on how to create one:

https://www.biggerpockets.com/forums/87/topics/349...

Also, you can send a "sample deal" and ask, what do you think of this deal, and get their feedback. 

It is consistency of communication, so it may take a few tries, but start building up the relationships now with your lenders/partners. 

Post your deals everywhere and build up a list. There are lenders out there (especially moreso in today's market than 2008-2011) who are looking for trustworthy people who can make their money go to work. (See the book Rich Dad Cashflow Quadrant... I = investor, who wants their money to work for them). Your goal would be to service this group of individuals. 

I would also try to focus on motivated sellers who can do seller financing and get  your investor to cover the down payment or half of it, then use a business line of credit for the remainder. 

Have you thought about Hard Money? 

Hey @Swat Khan Thanks for you input! I have thought about Hard Money but do they also fund the full purchase price? Also, aren't the points or interest seem kind of high you think?

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