How to Fund my next purchase

[Jared Baker]

Hello BP.

I've recently come across 3, 4-unit buildings that are all in need of some updating and bringing up to market rents.  Since I recently purchased a tri-plex(conventional mortgage) I only have about $20k in cash left over.  I've asked the sellers if they would be interested in seller financing but neither of the owners wants to because they are older and just want to cash out.  Any thoughts about how I could go about funding these properties?  Each building is roughly $225k, I should be able to get about $750 for rent in each unit, right now they are only renting for about $600-$650.  I'm anxious to expand my portfolio but I'm not sure what type of funding that I would be able to use to acquire these properties.

[Coral Hernandez]

What is a Hard Money Loan?

A loan that is Secured by a piece of Real Estate Property

The funds are generally issued by Private Investors or Companies

The Borrower will receive Funds based off of the Property being purchased

This is considered an All Cash Offer and Transaction

Typically, the Length of Loan is a 12 Month Term

A Hard Money Lender is an asset-based lender

Closing Times are generally 14 days or less

Finding ways to use other people's money along with your own is essential in Real Estate Investing, that is, if you want to be successful.

You are giving yourself the ability to invest in properties you normally would not have been able to, or would have had to wait substantially longer before doing so.

Depending on your Real Estate Strategy, the number of houses you can purchase and Flip/Rehab in a given time period, will determine how successful you are. The type of Financing you receive is critical to this process and will determine how many properties you can purchase in a year and at what cost.

Hard Money allows for an all-cash quick-to-close option when purchasing “Distressed” or Value-Add Properties. Don’t lose out because you didn’t do your homework!