Funding Sources Explained - Grow your Portfolio - Or Buy Your 1st
Once upon a time I was a loan officer. I leveraged that knowledge into buying properties. All Lenders speak their own language, but they have two things in common 1.) They want to be paid on time 2.) They don't want to lose their money - if you keep that in mind you will go much further. They don't like you, they don't dislike like you, they just want to be paid on time. This applies for Fix & Flip, Buy & Hold, & even Multi Family & Commercial. If you are just getting started or have a property or two, this might get you to the next level.
One of the first posts on this will simply list a few of the sources for money. All sources have differences in what it takes to obtain the money. There are "rules". Yes, the Golden rule. He who has the Gold, makes the rules.
Here are some Sources that you may know about:
Banks (ugh)
Credit Unions (hurray)
Mortgage Brokers (a good resource)
Pension Plans
Private Lenders
Hard Money Lenders (HML)
Credit Cards
Family
Friends
The Seller
A Joint Venture
Partners (bad, bad, bad IMHO) (more on why, later)
There are more sources which I will continue with in the next post, but I'll end this one here since I was taught by my son that it gets to:
TLDR (too long, didn't read)