How to Have Too Many Deals Even in A HOT Market - Part 2

[Wendell De Guzman]

Last week, I posted this:

https://www.biggerpockets.com/forums/12/topics/332...

The bottomline is: to be able to compete in this HOT market, you got to find OFF-market deals. How do you find those? There are many ways - and in the posting above, I shared what's working right now...at least for me.

In this posting, I want to discuss the SECOND way to have "too many deals".

Here it is:

LINE UP MULTIPLE SOURCES OF FUNDING - and you have to line these up way before you have deals. Here are some of these funding sources:

1. Your own cash

2. Business line of credit

3. Hard money lenders

4. Conventional mortgage

5. Private lenders

6. Partners

7. Credit partners

8. Transactional funding

9. Portfolio lenders

10. Specialty lenders

 Having a lot of cash can help you close deals faster and depending on the situation of the seller, you can negotiate a bigger discount when you're buying all cash. However, if you want to have "too many deals", having cash is not enough.

To beef up or supplement your cash, you can get a BUSINESS LINE OF CREDIT. You have to have an entity set up (an LLC, or a Corp). To qualify, you need to have GREAT credit (720 and above for one BLOC provider I work with). You can get BLOCs that are credit-card based (easier to qualify but costlier to cash) or check-based (meaning, you write checks). To get the latter, it's better you start a relationship with a local bank. I will talk more about funding in my subsequent posts but what about you:

What FUNDING source(s) do you find most helpful in today's market to get "too many deals"?