Funding holding me back

Funding holding me back

New to Real Estate · Jupiter, FL · Member since 2016 · 16 posts · 0 votes

Hey All,

I am dead set on making real estate investing my future.  My goal is to have my first property within 90 days.    However, I am really having trouble understanding the acquisition and complexities around financing my project(s).

Is it as hard as I am making it out to be in my head?  I have heard there are 1000 ways to go about this, but I am inexperienced and don't really know where to begin on looking for funding.  I have access to a rather large sum of money in my 401(k), I have a conventional mortgage available to me up to $150k (at least that is what my broker told me on a 5 minute phone call), and I have contacted a hard money lender for more info (still waiting to hear back).  Not sure how to even go about finding a private lender

Just hoping someone can help me set off in the right direction. Books, Articles, companies, a cold beer to relax...  Maybe someone has had this same concern/issue when they were starting out and can offer some advice?  

My plan is to flip houses and buy and hold rental property.  I'm ok doing both.

Thanks in advance for your time.

Louis Mannikko

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y

@Louis Mannikko if your 401k is a solo 401k that you control.. you may want to look at investing NOtes or with a HML.. this is a very good use for those funds.

on the fix and flip you may want to consider partnering up.. just make sure whoever you partner with is vetted thourougly.. plenty of " my idea and your Money guys out there"

you can go on amazon or E bay.

Look for any of the guru's written material and videos you can get those for next to nothing. look through them there are usually nuggets in each one that you can use.

you can also spend untold hours on BP asking questions and reading and listening to pod casts etc.. of course this is free and just depends on if you have the time for that.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Louis Mannikko if your 401k is a solo 401k that you control.. you may want to look at investing NOtes or with a HML.. this is a very good use for those funds.

    on the fix and flip you may want to consider partnering up.. just make sure whoever you partner with is vetted thourougly.. plenty of " my idea and your Money guys out there"

    you can go on amazon or E bay.

    Look for any of the guru's written material and videos you can get those for next to nothing. look through them there are usually nuggets in each one that you can use.

    you can also spend untold hours on BP asking questions and reading and listening to pod casts etc.. of course this is free and just depends on if you have the time for that.

  • Alyssa MarquezBusiness Member
    Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 117 posts · 25 votes
    3w

    It’s Definitely feels a little over the top, especially at first because of how many ways there are to fund this business!!! I would work backwards off of strategy rather than trying to absorb all forms of capital at once. For buy and hold, traditional lending might make sense, and for a flip, hard or private money might make sense depending on the deal spread.

    Be wary of pulling from the 401K until you have thoroughly grasped the implications for your taxes and risk exposure.

    Nail down your buy box, speak to a variety of lenders, run your deals to their financing terms and once you see capital married to a piece of property, it often starts to snap into focus.

  • Matt HiltnerPro Member
    Lender · Denver, CO · Member since 2021 · 41 posts · 11 votes
    3w

    @Louis Mannikko DM and let's setup a time to chat. I've been flipping and developing properties for 18 years and I am also a private lender. One of the main reasons I started in the private lending world is because of what you mention here. There is a lot of noise out there and really someone who offers direct ideas without having a full picture of you and your goals is just giving generic advice. Let's chat and I'm happy to help guide you through this process. To be clear... this isn't me saying "I can fund your deal" this is an offer of education and learning. Happy to discuss when you have time Louis.

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