How Are You Getting Cash for Your Purchases?

Question

So, with interest rates on a roller coaster and the economy doing its own thing, I'm curious how we're all wrangling cash for our real estate opportunities. Hard money, creative financing, or traditional financing?

Matthew Paul · Answer

I use my check book .

Rick Pozos · Answer

Hey @Sam Fulkerson nothing has changed. You do whatever you can to get that super duper deal funded and closed.

I always ask if the seller if they are ok with me taking over their payments and I can get them some cash. When that does not work, I ask them if we can do a wrap around loan so that the seller is basically owner financing the property to me. When they say no to that, I have to go pretty low on the offer because I have to get a hard money or private money loan and its going to be about 10% to 12%.

You have to talk with the seller to see what their situation is and what will work for them. THAT is how you base your offer, Condition AND Financing.

Jacob Sherman · Answer

We are all here to learn together ! Yes bridge/hard money is the umbrella term meaning temporary short term financing . Fix and flip , ground up construction fall under it . Its the most convenient loan to use

Micah Cook · Answer

I'm also here in Indiana! Hard money, creative financing, or traditional financing should be viewed as different tools that you can use; try not to worry too much about finding one, singular way to finance every deal.

For example, if you are buying an off-market deal from a family member, you may want to see if you can use traditional financing or creative financing since there's no competition and you'll get the most attractive/flexible terms.

On the other hand, if you see a newly listed deal on the MLS, you may want to look at hard money since it can fund quickly like cash.

Hard money loans are more expensive so you'll want to plan your exit before you get in whether that be refinancing into a long term note or selling the property.

Hope this helps!

Eric Gerakos · Answer

Money order.

Jacob Sherman · Answer

its mostly fix and flip loans and then cashout refinancing to permanent financing when rented

Clint Jusino · Answer

Is a fix and flip loans the same as a bridge loan? How about a hard money loan? Still learning all the different types of creative financing.

Bjorn Ahlblad · Answer

Make sure you arrange your money requirements when you don't need it. Whole different conversation and feeling. You won't even look the same.

Sam Fulkerson · Answer

Ok for someone newer that cant just use their checkbook what would you recommend?

How Are You Getting Cash for Your Purchases?

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