For SFH, what are your creative financing strategies to obtain a great deal? For the past month I have found some unique properties with great potential! However, I seem to get nowhere when obtaining the financing for these properties - without bank loans (due to 1099 employment).
I've tried obtaining private partners but no one seems to have money around my area. I've tried hard money lenders, but they require an LLC and experience in investing. The only other option I see is owner financing. How could I convince an owner to finance their property and pay them back within 5 years?
Owner financing is not your only option, and you have to consider how you're talking to potential private lenders. I found a sure deal this past June but didn't have even a fraction of the money needed. I asked everyone I could think of who might have the money, and even one guy who really thought about it, but in the end, I couldn't convince him of the property's After Repair Value. The ARV, in this market was roughly double what it would have, and eventually did, cost to purchase.
Again, last month, a killer deal came up, and I didn't know at the time about needing an LLC for Hard Money, but because I've been active and generous on BP, when I called a hard money lender in my area, he knew of me, and would have been comfortable lending to me. However, I needed to get an LLC and didn't have time, so I approached my circle of potential private lenders again, but this time, because I was better at showing the numbers and calmly clarifying the value of the property I had on the hook, I not only got the private funds, but I had three different people offer backup funds if needed.
You have to (1) Have the deal, (2) show credibility and expertise on the process of buying and rehabbing the deal, and (3) Know how to sell others on the deal.
Hope something here can help you move forward. Best of luck!