How to find funding

Question

Michael Nicholson · Answer

thanks Account Closed I currently do not have the 20% to 25% down, but you're right I have ran into that rule where I have looked for funding. I do have a few people interested in partnering with me from my local creia group, and one person interested in lending the money, so thankfully the deal is still on the table. The main thing is that I am learning all of these other things in the process; what it takes to get this type of loan, etc.

Thanks for the luck sir!

Michael Nicholson · Answer

@Art G. Thanks for the suggestion! I will definitely check out the book. Is it on Amazon? I read most of what I read on my kindle.

Art G. · Answer

Michael, You MUST read this book, The Wealthy Code by George Antone. It changed my life and will change yours too. It is the single most important book you will ever read in real estate. It explains deal structure in a very simple way (the new words make it complex at first, but easy once you absorb them) and it shows you how to structure any business deal to maximize profit and minimize risk.  When you read this book, and its short and sweet, you will see why your plan of attack is the absolute wrong choice.  You will learn that you NEVER 100% a deal.  You will learn what an equity partner is and why that is the correct decision for you.  Also, you will learn how to analyze deals and present the numbers in a way that partners and banks will be asking you. Have you worked out your: NOI, Cap Rate, Loan Constant, Spread, ROI, BRE, DCR and ascertained volatility? Are those results within acceptable ranges?  After you read this book, you will answer those without hesitation.

When you come to them with the deal numbers already worked out, you show them its a good deal and that you are competent.

David Dey · Answer

yes

Art G. · Answer

Yeah, that link I put in the title of the book, takes you to amazon. But here is the kindle link on amazon.

David Dey · Answer

Just kidding, I couldn't resist.

The old can you can you grab me a coke, yes I can gag!!

Ok, seriously.

Truth is that is a veryloaded and vague question, which leaves the answer quite wide open.

What size is the complex?

If it is a under 25 unit complex, chances are that this is a mom and pop operation.

If so, many of the same tools to buying a residential unit may apply.

Scenario 1) is the owner high equity?

Options: owner finance, lease option, private first seller second financing, equity trade, have the owner refinance then agreement for deed/ take over payments, zero interest bonds, private money, bring in a partner, etc...

Scenario 2) Is the owner extremely low equity?

Options: subject to, agreement for deed, lease option/sandwich lease, payout the seller's equity (either in one lump sum or if you don't have it all in payments) private money, etc.

Scenario 3) is the owner in distress?

Options:  take over payments (catch them up, work on mod/ Shortsale) bring in a partner, etc.

Bottom line, look at the problem and come up with a solution.

if you have a more specific scenario, we can problem solve and see what options there are.

Hope this helps!!

How to find funding

Most Popular Reply