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Creative Real Estate Financing

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Mark J.
  • Jersey City, NJ
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125
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Running out of Capital- Need Advice

Mark J.
  • Jersey City, NJ
Posted Jan 24 2021, 06:39

Hello,

I started investing in buy and holds a couple years ago and looking to ramp up this year to hit a cash flow goal.  I'm hoping to close on my 4th property next month and actively seeking to add 3 more as soon as I can.

One issue I see on the near horizon is running out of capital for down payments.  I can probably finance about 1 more traditionally, but will start getting into a tight situation after that, so starting to explore creative strategies.

I know there are a lot of financing options such as hard money, Helocs, refinancing, LMAs, 401K loans/withdraws, etc., but not sure which makes the most sense.

Curious what others with experience think I should be looking into for my scenario. Beyond investment savings I have 401K and Trad IRA (rollover). The most equity I have in a property is about 90K at about a 60% LTV

I know this request is a little naive and a somewhat general "what should I do", but hoping to get feedback from others that have been there already and/or finance savvy through a real estate lens.

Thank You in advance!

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