Updated almost 9 years ago on . Most recent reply
Private Funding for Investors
When it comes to funding projects I use Private Funding. It took a lot of networking and proving that I know what I am talking about. I went to a lot of education programs and REIA meetings.
I now fund all my buy n hold projects and rehabs with private funding. I put in about 5% of the money so I have something invested in the project. The funds are protected by a Joint Venture Agreement and at the end of the day the investors are investing in me. I will protect there money as if it were my grand mothers.
I purchase, rehab, put a tenant in the property and refi the property. Its about a 120 day process. I use commercial loans for residential properties mostly single family. It keeps me from putting up 20-25% of my money. The refi is usually at 80% LTV because I make sure the Debt service Ratio is around 1.70 - 2.0.
I hope this will encourage some people to be creative in your deals and to become successful in your real estate investing.
Good Luck.
Most Popular Reply
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
Funding is the age old problem! Private funding, HML--it all works in the right scenario. Some of my best friends provide private funds for my buy and hold rentals. Ever new investor should start working on funding when they decide to enter RE. Ask everyone-friends, family, people from church, people from work...all you need is a few good ones. The whole key to keeping them happy is to pay timely! They get LOTS more than having the money in the bank.