As you know, there are many types of loans you can get. There are bank loans, hard money loans, private money loans, and even credit card loans that you can seek for your deals. It’s important to know all the different loan options that are out there. But it’s just as important, if not more so, to get to know how to apply those loans properly in your business.
The Art of the Deal
I can tell you firsthand that applying the wrong loan to your deal can make the difference between a profit and a loss. Things like taking a long-term project like a stabilized buy-and-hold an using what I would call “short term” loans on it — such as private money or a credit card— can kill your otherwise profitable deal. The same goes for jumping through the hoops to get long-term bank capital and use it on a deal that doesn’t benefit from that type of money.
Watch This Video!
In today’s video, I talk about what types of loans you should consider for wholesale deals (yes, wholesalers need to borrow money sometimes, too), fix-and-flip deals, and buy-and-holds (including BRRRR, turnkeys, and apartment building deals). Be sure to check it out. It’s full of info on different types of loans and how to match them to any type of deal. Check it out!
Do you have questions about pairing loans with specific deals?
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