Do You Think Capital Access Is the Real Bottleneck for Investors?

General Real Estate Investing
1yFollow

Do You Think Capital Access Is the Real Bottleneck for Investors?

Brandon Lee
Member since 2024 · 95 posts · 56 votes

We always talk about finding deals, but I often hear investors say the real bottleneck is access to capital.

Do you agree? Or do you think finding quality deals is still the bigger challenge?

1Reply
123 views

Most Popular Reply

David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
1y

none of the above. If you find a deal finding the money is easy. We've done over 1,000 deals for our own inventory, only 25% came from the MLS. Which means 75% did not come from the listed properties of the MLS. We used, Sheriff Sales, Tax Sales, FSBO, Probate, Auctions, word of mouth, and any other method I could think of.

2Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Jason Taken
    Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    1y
    Quote from @Brandon Lee:

    We always talk about finding deals, but I often hear investors say the real bottleneck is access to capital.

    Do you agree? Or do you think finding quality deals is still the bigger challenge?


     Access to capital? Really? There is by far way more capital on the sidelines ready to go than profitable deals waiting for capital --- by a long shot.

    0Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    1y

    none of the above. If you find a deal finding the money is easy. We've done over 1,000 deals for our own inventory, only 25% came from the MLS. Which means 75% did not come from the listed properties of the MLS. We used, Sheriff Sales, Tax Sales, FSBO, Probate, Auctions, word of mouth, and any other method I could think of.

    2Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @David Krulac:

      none of the above. If you find a deal finding the money is easy. We've done over 1,000 deals for our own inventory, only 25% came from the MLS. Which means 75% did not come from the listed properties of the MLS. We used, Sheriff Sales, Tax Sales, FSBO, Probate, Auctions, word of mouth, and any other method I could think of.


      David ,  the sheriff sales tax sales and other auction type transaction do take cash on the spot in most states.. so I would think access to capital is or can be a Major issue for most starting out.  I know in my work a day world of helping investors buy these properties with OUR capital many get shot down and have to look at many different funding sources and many times never do get the capital for various reasons.. IE they have no real money  they dont have any experience they dont run the numbers correctly etc etc.  I think one should line up capital before they go shopping.. IMHO. 
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    1y

    @Jay Hinrichs  agree, some courthouse sales are 100% due at the sale.  Some others are as low as 10% day of sale and remainder in 2 or 3 weeks.  Other non-government auctions are typically 10% day of auction and the remainder in 30 to 45 days.

    0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @David Krulac:

      @Jay Hinrichs  agree, some courthouse sales are 100% due at the sale.  Some others are as low as 10% day of sale and remainder in 2 or 3 weeks.  Other non-government auctions are typically 10% day of auction and the remainder in 30 to 45 days.

      out here on the West coast were foreclosures etc are all cash ALL CASH day of auction capital is the most important thing.. Not a lot of folks running around on auction day with 500k t 5 million in cashiers checks like you see out our way.. :)  This is why Pace Morby was so timely with his sub to training and methods ..  encouraging RE investing with no credit and very little cash etc etc. 

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      2Reply
    • Marcus Auerbach
      Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
      1y
      Quote from @Jay Hinrichs:
      Quote from @David Krulac:

      @Jay Hinrichs  agree, some courthouse sales are 100% due at the sale.  Some others are as low as 10% day of sale and remainder in 2 or 3 weeks.  Other non-government auctions are typically 10% day of auction and the remainder in 30 to 45 days.

      out here on the West coast were foreclosures etc are all cash ALL CASH day of auction capital is the most important thing.. Not a lot of folks running around on auction day with 500k t 5 million in cashiers checks like you see out our way.. :)  This is why Pace Morby was so timely with his sub to training and methods ..  encouraging RE investing with no credit and very little cash etc etc. 


      Probably that's a good thing: if you buy at auctions, you need to be financially prepared to deal with unpleasant surprises - on one deal you could make 100k, on the next you could lose as much. Not great if you are a newbie and work with borrowed money.

      0Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    1y

    @Jay Hinrichs  At one Tax Sale where you have to pay same day, there was a bidder with a zip lock bag, yes transparent, filled with cash walking around.  I wondered how he walked along the streets like that?  At another sale a bidder had a large manilla, at least not transparent, overflowing with cash.  At yet another Tax Sale, one bidder seemed to be high bid on every property he bid on, and ended up spending $1.7 million at the sale. I can assure you that was not me.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free