Planning Capital Before Finding the Deal

Planning Capital Before Finding the Deal

Member since 2024 · 95 posts · 56 votes

I’ve noticed many new investors focus heavily on finding a property first, then scramble for funding after.

For experienced investors here—do you line up capital before or after you’re under contract?
Pros and cons?

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  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    9mo

    There are multiple ways to line up capital.  Many new investors don’t have a lot of disposable income when they start so you have to plan for how you are going to acquire and or rehab property.

    You can partner with an experienced investor and learn from them.  You bring the deal, they bring the rest.

    Talk to a loan officer and see what you qualify for.  How is your credit looking.  When I started I was the credit guy and brought years of construction experience.

    When I went on my own, I used private money for almost all my deals.  Purchase and rehab.  There are always hard money loans as well.  

    Attend local REIA groups to network with people and of course here on BP. I found face to face networking for me worked best.

    Of course there is wholesaling.  Bringing the deals to experienced investors where they buy them from you.  That starts to put cash in your pocket.

    Best of Luck.
     

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