Purchasing strategy alternative to hard money
So I've been talking with a lot of investors I work with, I have a little hack that I personally use myself that not a lot of people I speak with have thought to do before. So my bank is partnered with a relatively new bank that offers helocs with alternative income doc which is great for investors or business owners who can't qualify the normal way with tax returns. You can do this with primaries and investment properties. Typically it's very fast application process is only about 3-4 minutes and you get on the spot max allowable loan amount and rates. You pick what you want you send bank statements for income calculation and they pull title and review. These typically close in 4-5 days after starting application. It offers great flexibility you can pull money whenever you need it for purchase and construction and once you either sell or refinance the property you can put the money back into the heloc and pay only $50/mo to just keep the account open while you're looking for your next deal. The beauty of it is you're only paying closing costs one time over the course of the 5 year draw period rather than having to pay expensive closing costs using hard money for every purchase. It allows you to essentially pay cash instead. Also you can draw the money for whatever reason you choose. You don't need to call and request an inspection to get construction draw. And depending on your credit you'd likely be paying a lower interest rate. Depends on how quickly you're scaling and how much capital you actually need access to but if you're looking for savings on 2-3 deals a year this is definitely an option.