My money or Your money?

Question

Hi BP Community

Asking a question for my Uncle Ruben...who is new to the real estate game..have a question for you guys... he is looking at a property..75k fully rehabbed with a promise of tenants paying $1,100. Ill leave that up to the property managers since he seen proof of rental income from previous tenants in the area. My question is..should he use the Robert kiyosaki method...take out a "good" loan... using Other peoples money or should he use all my 60k in my bank account and get the rest from hard money lenders? Banks don't seem to lend for investing for property being 70 and lower in new jersey. All comments welcomed =)  would love to hear your input...thank you very much BP!

Fred Gonzalo · Answer

thanks @Edgar Sulca and @KinYat Lam.  That was easy for me to make my choice and tell my dear uncle Ruben what to do.  Ill get him started on BP as well.. always great to get useful info from here.. can save u a lot of mistakes and dollars =)

Edgar Sulca · Answer

And I agree don't use the hard money

Edgar Sulca · Answer

@Fred Gonzalo It's always best to try to just get a good loan from the bank. If that becomes an issue and u want to use your cash from your bank account and don't have enough or don't feel like risking it maybe try to have a partner go half on the deal with u  . U can put half your cash and use their half cash and problem solved .

KinYat Lam · Answer

@Fred Gonzalo I do not think you should go for a hard money loan. Talk to the local small banks, getting a commercial loan is still better than getting a hard money loan.

Sean