Best practice to source financing for Residential Rentals

[Parker Clements]

My business partner and I have been investing for 6 years and paid for our current properties via FHA loans, cash, and one cash out refinancing under an LLC. However, with the cost to borrow money from banks and CU being so high and lengthy in time, we are stuck understanding how to source money to purchase and rehab properties on a larger scale. Are there any recommendations for myself regarding places/people to connect with, specific questions to ask, or creative ways to find financiers?

Thank you in advance for any and all help   

[Sarah Downey]

Hi Parker,

My husband and I switched over from conventional loans to using hard money/private lenders back in 2020. The underwriting process is a lot easier since they focus on the property Income/ROI, not your personal income. You will definitely be able to scale up faster. If you have flip experience, you can usually get higher-tier pricing.

Another big factor is that if you are closing your loan with an entity, it will not show up as a tradeline on your credit report/personal DTI. This can help safeguard your credit score.

The company I am with now helps you shop the top private money lenders in the market, too, so if you are not sure how to navigate these types of loans, we can definitely help.