Funding Sources Explained - Grow your Portfolio - Or Buy Your 1st

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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



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)

Some of my favorite ways to buy properties include some creative financing techniques

Here are some Sources that you may Not know about:

Subject To  also called

Sub 2

Owner Financing

Lease Options


Mirror Wraps

Land Contracts also called

Contract for Deed

401(k) funding


Sell Your Boat (I once took a nice boat as a down payment from a Tenant Buyer) ;-)

I used that boat as a way to pay for the equity of a property I bought with Owner Financing

and some more:



Commercial Lending



Someone else's 401(k) with their permission of course ;-)

Your Boss's Funds - as a Joint Venture

Your Tax Return

Tenant Buyer's Option Payment

Bank of Dad

Your Dentist

Your Doctor

Your Favorite Businessman

Next I will explain how some of these work and hopefully you will start putting together a deal. By the way, these work in AZ WA OR CA CO NV ID IL TX and on and on in All 50 States