Where to get the money for investment

[Goredy Tess]

Hello All,

After joining bigger pockets a month back and doing a ton of analysis to find a property with a decent amount of cash flow, I have finally acknowledged there are a couple of properties that fits that criteria. 

So, now I am at the next step of asking myself, where do I get the money, so far I have heard people say "don't use your own money", "No money down" type of statements, I personally don't see a way out without using my money, because all the lenders have their pros and cons, they all want a down payment between 5-20% and a collateral, those lenders could be (Bank, private lenders, hard money lenders).

So my question to the forum, where do I find private lenders and hard money lenders that don't require a collateral?

 Thank you

[Matthew Irish-Jones]

@Goredy Tess since you are a newbie I recommend neither.

You get the money necessary for RE from saving it from your W-2 income. When you have enough to make a purchase you can buy a nice, safe, B class asset that will cash flow a little.

Wait 5-7 years, live below your means, save ALL the cash flow, and refinance the equity. There is a reason banks want to see cash reserves and they want 25% down.

They don’t want to see people get over leveraged on risky deals. That’s in essence what you are trying to pull off. Finding a cheaper house, only putting 10% down, doing a large renovation, refinancing out of it… can be done but it requires a lot of experience, and managing a lot of different moving parts. It’s not the best way to start.