Funding for Rehabs

[Larry N.]

Hi,

If one is starting out in the rehab business with no cash, credit or experience, has does one get the funding to do the deals?

I've heard that one can do the business with no cash, credit or experience.

How can one get a 'real' private lenders to fund the deal or where can one get partners to partner or JV with the investor to do the deal and split the profits?

Thanks,
Larry

[J Scott]

Originally posted by Larry N.:

Ten years?? Sounds like a very long time to find a private lender to fund your deals.

I don't think Ned meant to imply that it takes 10 years, but it certainly helps to have experience. I've been doing this for 5 years, and I'm just now starting to get people with money approaching me in order to lend/invest money.

So, I guess that means it can be done in 5 years... :)

Our REI Club advised us, in this market today, there are many people with tons of money looking to invest in real estate. You just have to connect with them.

Yes, there are many people with tons of money. But, there are also many people looking for money. If someone with money met someone with no experience and then met someone like Ned, who do you think they'd decide to invest with?

If you're just starting out and want to rely on private lenders, I would recommend you find people within your network (who know you) that have money. Your lack of experience won't be appealing, but if they know and trust YOU, that can make all the difference.