Creative financing options

[Matt Tallent]

Hey guys, I’ve been on bp for a year now I just got my first deal a 4bd in philadelphia and have it rented. I’m looking to get my second house later this year. Obviously when starting out available money is one of the hard things to navigate. I wanted to know what creative financing options you guys have? My buddy does 5-10% down with higher interest, I’m looking for something like that. My goal is the least amount out of pocket. Let me know thanks!

[Alex Huang]

You could always try to get private money.

My buddy does this with friends and family. They provide a 12-month loan at 10% and he uses it to acquire properties. Then he can refinance and cash out and pay back his investors. You can provide quarterly interest payments, bi-annual, or whatever structure is most desirable for your investors.

Use your first property (pictures and numbers help) to solidify your experience and knowledge. You'd be surprised how many people would happily put their money in a guaranteed 10% return as long as it is secure.