All Forum Posts by: Account Closed

Hi @Holden McCord

Thanks for checking it out! Best of luck on getting your first property!

Hi Everyone,

One of the key parts of investing is obviously finding the financing for the deals after you find it. It can be one of the easiest parts but you need to know what to look for. So many investors will tell new investors to not worry about the money and it will come when you have a deal but they forget to tell the new investor where to get it from when the time comes. I want to compile a list of places to find the money. So below are places that I have got money from, places I know other investors have achieved financing, and I would like everyone to add the ways they have raised funds for their properties.

-Hard money brokers- this one is pretty easy to find by asking another investor or looking up online. the key is to do your due diligence and find out exactly all their costs and rules. I have been caught up on a rule before that wasn't disclosed before and it killed my deal. This money is good for getting started because it TENDS to be easier to borrow. 

-Private Money- this one is borrowing money from a private individual. It can either be someone you know like a relative or friend, It could also be someone you find that has money they are looking to lend, Doctor, lawyer, dentist, contractor, etc. It is very important to make sure everything about the deal is very clear in this type of lending so no one can say something was missed. Benefits here can be that you can negotiate a good deal on the lending, from interest to no payment and splits of profits, the creativity is only limited by you imagination. 

-401k- people can lend money out of their 401k (it is a particular one that I myself am not positive of which) this is a great way for lender to make more money in their 401k and get good tax benefits on lending the money. An accountant would be a good person to ask about more particulars on this one.

-Traditional banks- smaller banks are lending money in a few ways. They are doing a flip loan much like hard money lenders but with better rates, they are doing lines of credit to experienced investors, they are creating "Lines of credit" that are treated as mortgages but because they are "lines of credit" they are already approved and can be closed quicker. The longer you use a bank the more money they will give you. 

-Transactional funding- this is a lender that is lending you money for a wholesale or a deal where you need to buy it then you can get a bank loan on the property. they only will lend the money for 30 days at most usually and expect a fixed money back on the money usually. You can look up some of these lenders online or ask other wholesaler investors. 

-FHA 203k loan- ask mortgage brokers about these, they are very involved but can be a great start for a new investor. it takes a lot less down to get the loan and can be very helpful in protecting you on your first deal because of all the requirements needed to settle the loan. these are most common for house hacks. I know a lot of these loans require some sort of owner occupation, But I believe a few don't (mortgage brokers please clarify for us)

Crowd Funding- This is easy enough to find online, their are many websites now offering it. It is useful to use if you have little or no funds for a particular deal. I would recommend reading more online and maybe finding and investor who has done it before to find out more. 

Creative-  This is the number one thing to be when it comes to funding your deal. I know some Investors who have funded deals by doing a partnership with the current owners, ex relative dies and the family decides to finance deal for investor who gets deal done and then everyone splits profit. There are so many ways to complete a deal that it only takes a knowledge of your costs and how real estate is bought and sold to figure out new ways to get it done. 

I ask everyone to add their experiences and knowledge to this discussion so we can all have a great resource of what's possible when it comes to getting the deal together and completed.

Thanks!

@Kyle Brown

I would recommend Warren Wolf. He’s from Goldberg and wolf in cherry hill and always has his clients in front of mind. Gets the matter resolved without delay.

Hope all works out,

@Ivan Yu

Investing can be scary when you are first getting started. It definitely was for me, I got into flips first and now do construction. The way I got confident moving forward was shadowing people who did the type of investing I was looking to do. Look for a fellow investor who might be buying rentals in your area and see what they are doing, tag along with them and see how they evaluate a property. Practice evaluating properties as often as you can and run your analysis by other investors, this will help you gain confidence and get you to buying your first property. Sometimes you think you know what strategy you would like to employ but you find out there is a better option available. There are tons of ways to invest so it’s important to gain as much insight as you can before you invest.

Let me know how it goes,

@Shontae Hunter

I also use core title, they have been very helpful in the flips I have done.

@Melody Kushi and @Joe Sadusky

Pleasure to meet you guys. I am a contractor for both those areas and would love to put my name in the hat for consideration on any job you might have. Please feel free to reach out by sending me a pm.

Thanks!

@Joseph Cameron I am a project manager that works in that area, please message me if you’d like to talk more.

Hey Dan D. Having a routine definitely helps. It is also very important to get like minded people around you. That goes for anything you are looking to get into. Other important factors for this industry would be to educate your self through books, podcasts, lectures form experienced investors and other professional in the field. Also you want to really concentrate on building a great team, contractor, agent, lender etc. make sure they complement you and your strengths. Let me know any other questions you may have,

Thanks @Odie Ayaga.   Hey @Vincent Milano It's nice to meet you. I would love to talk about the project, send me a PM and we can talk further.

Talk soon,

Caleb Heimsoth Thanks for the input! Always love hearing others thoughts!