What’s Your Biggest Challenge in Getting a Deal Funded Right Now?

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What’s Your Biggest Challenge in Getting a Deal Funded Right Now?

Joe Grespin
Rental Property Investor · Member since 2018 · 70 posts · 38 votes

I talk to a lot of investors across different markets, and one common theme always comes up: funding.

Whether it’s:

  • Hard money lenders getting too tight

  • Banks slowing things down

  • Or just needing a flexible partner...

I’m curious — what’s your biggest hurdle when it comes to funding deals right now?

Let’s share and learn from each other — and if I can help point you toward a solution (or possibly help directly), happy to do so.

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Mike Klarman
Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes
1y

The hardest part will always be sourcing a property worthy of a hard money loan.  Not every property is.  How many investors are out there using A.I, using virtual assistants, using skip tracing, using social media to find the best deals.  Lots of people looking for that great buy.

If a lender turns your deal down, odds are they are doing you a favor.  Are they really turning away a deal where the investor crushes it?  No.  They know if you crush it you are coming right back with another.  

The BRRRR as a strategy works sometimes, and other times it financially crushes the investor and ruins their credit. It's the difference between a rule and a principle. A rule states do this and you get this result, a principle states when this is done effectively it has worked before. That's why in painting, and in writing, and other art forms there are no rules, only principles. if there were rules, anyone could paint, write, act, sing. But there are no rules, just principles.

I say this because the books, podcasts and what not make this sound very, very easy and it is not at all. If you do the BRRRR and your asset choice is off, your math is off, your contractor lets you down, your agent was all talk at the start and now he/she can't sell it, if any one of these things happen, you will probably lose money, question is how much.

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Is this just a "teaser post" from a private lender?

    0Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Should this be in Classifieds?

    0Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Just curious...

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Joe Grespin:

    I talk to a lot of investors across different markets, and one common theme always comes up: funding.

    Whether it’s:

    • Hard money lenders getting too tight

    • Banks slowing things down

    • Or just needing a flexible partner...

    I’m curious — what’s your biggest hurdle when it comes to funding deals right now?

    Let’s share and learn from each other — and if I can help point you toward a solution (or possibly help directly), happy to do so.


     Biggest Hurdles in the Broker Side: 

    1. Too many lenders hiring bad reps. (Never answer calls, no experience, no support) 

    2. Clients withholding information and trying to do a "fast one" 

    3. Credit Reports are getting very expensive 

    4. Bad appraisers 

    5. Slow title/insurance reps (usually from the borrower's choice) 

    [email protected]818-269-7983
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    1Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes
    1y

    The hardest part will always be sourcing a property worthy of a hard money loan.  Not every property is.  How many investors are out there using A.I, using virtual assistants, using skip tracing, using social media to find the best deals.  Lots of people looking for that great buy.

    If a lender turns your deal down, odds are they are doing you a favor.  Are they really turning away a deal where the investor crushes it?  No.  They know if you crush it you are coming right back with another.  

    The BRRRR as a strategy works sometimes, and other times it financially crushes the investor and ruins their credit. It's the difference between a rule and a principle. A rule states do this and you get this result, a principle states when this is done effectively it has worked before. That's why in painting, and in writing, and other art forms there are no rules, only principles. if there were rules, anyone could paint, write, act, sing. But there are no rules, just principles.

    I say this because the books, podcasts and what not make this sound very, very easy and it is not at all. If you do the BRRRR and your asset choice is off, your math is off, your contractor lets you down, your agent was all talk at the start and now he/she can't sell it, if any one of these things happen, you will probably lose money, question is how much.

    2Reply
    • Ryan Stuckey
      Lender · Member since 2022 · 217 posts · 148 votes
      1y
      Quote from @Mike Klarman:

      The hardest part will always be sourcing a property worthy of a hard money loan.  Not every property is.  How many investors are out there using A.I, using virtual assistants, using skip tracing, using social media to find the best deals.  Lots of people looking for that great buy.

      If a lender turns your deal down, odds are they are doing you a favor.  Are they really turning away a deal where the investor crushes it?  No.  They know if you crush it you are coming right back with another.  

      The BRRRR as a strategy works sometimes, and other times it financially crushes the investor and ruins their credit. It's the difference between a rule and a principle. A rule states do this and you get this result, a principle states when this is done effectively it has worked before. That's why in painting, and in writing, and other art forms there are no rules, only principles. if there were rules, anyone could paint, write, act, sing. But there are no rules, just principles.

      I say this because the books, podcasts and what not make this sound very, very easy and it is not at all. If you do the BRRRR and your asset choice is off, your math is off, your contractor lets you down, your agent was all talk at the start and now he/she can't sell it, if any one of these things happen, you will probably lose money, question is how much.

      Fully agree, getting funded on a solid deal is very easy. There is no shortage of liquidity looking to be deployed. 

      Finding those deals has become the bottleneck...
      0Reply
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