Financing Deals as a Rookie
I keep reading these stories of people starting off in Real Estate with no money. They hook up with a Private Money Lender then obtain properties to hold for long term investments. Can anyone elaborate on how this is possible? I thought all Private Money Lenders want what they lent plus interested back in a short time frame. How can one borrow 250k+ and have all that back in 1-2 years? I am 6 months into my investing career and I do not feel like I am moving quick enough to getting my first property. ANY ADVISE WOULD BE GREAT!!!
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@Grayson Grzybowski I've done a number of deals where either I obtained seller financing, or got the funds from a friend on a short term basis. The goal is to force appreciation from renovating the place, and then refinance through a bank quickly (6 - 12 months) to pay off the original loan. That said, it isn't "no money down", there are always closing costs, reserves to finish the project in case it goes over budget, etc.