Updated over 4 years ago on . Most recent reply
“You’ll find the Money”
I'm in the beginning stages of my real estate investing, currently have one rental property and I hear constantly whether it be podcast, YouTube videos etc. if you find a great deal, you'll have no problem finding the money to purchase. Am I taking this to literal when I think that people get these properties under contract and then find the funds to purchase after? My biggest goal for my next property is to successfully complete the BRRRR strategy because I believe that will help me scale greatly. I'm coming across property's between 80-90k that I believe have some sweat equity built into the deal, just looking at comps, and would love to get them under contract but don't have the capital for an all cash purchase. So back to my previous question, do some buyers get them under contract first and then find the funds? I believe it could be a pretty motivating way to really hammer down and make the deal happen but also seems like a great risk and may be not an ethical way to go about the process. Look forward to all responses, thanks.
Most Popular Reply
I agree with you that it's not exactly ethical to enter into a contract that you do not have a reasonable belief you'll be able to perform on.
Find the money now. That's not to say you need to have it in your account, but know where it's going to come from. Talk with potential investors and/or lenders to get genuine interest.