I am very new to all of this, so, I am learning a lot every day, Just need someone to clear this up for me. I am now learning that even though I may not have a lot of money saved up, I can use someone else's money (private lender) I am still not sure how I would fund my deal completely with someone else's money. So lets say I were to purchase a property for $100,000. I need to get approved for a loan with my bank and then would possibly need 20% as a down payment. I could go to the private money lender for the 20%? So if thats the case and the home needed repair, I can't use a private money lender twice can I? Or would I just try to figure out the full loan amount before finalizing with the property? Thank you all for your time.
@Ryan Hanrahan , Before you go asking anyone for money, I highly recommend you have a solid idea of what your numbers are going to look like. Now to answer your questions in a direct manner, yes to both. You can use a private money lender more than once, or as many times as they'll let you (based off of your negotiation skills), and it's recommended that you figure out the amount you may need prior to taking on the project. There are a lot of questions here that you're not asking, that should actually come before these questions. You may want to pick up a couple of the books on here (BP) before you start shopping around for a property. Learn from other's mistakes before you make your own. I wish you the best of luck, and feel free to PM me if you would like more specifics.
A private money lender will not get you money for a down payment , but you do have the option of using vehicles like Perosnal loans , credit cards ,and lines of credit which would essentially allow you to buy the property with none of your own money. I’ve used this strategy twice now with great success.
@Matt Crusinberry thank you for the quick response. I'm just trying to make things clear right now. Not jumping into anything until I know what I'm doing.
@Michael Henry thanks for clearing that up.
@Michael Henry , Right on... Well, as I stated before, feel free to reach out. I have an idea of what you're after, and I would be glad to point you in the right direction as you begin this journey. Good luck!!!