Most effcient way to fund rentals

Most effcient way to fund rentals

Real Estate Agent · San Diego, CA · Member since 2018 · 124 posts · 50 votes

I'm curious as to others are doing.

I know you can use hard money, traditional lenders, private money ECT.

But I want some input on which route to take. I've got some rentals under my belt, I'm an active agent .. and I'm looking at deals daily.

I'm at the point where I'm ready to pull the trigger here on multiple deals that have come across the board. only problem is I'm out of capital. I've purchased 9 units in the past 7 months through 3 different properties. The first was a duplex off the MLS and then a 3 and 4 family I bought privately.

All running and operating- bringing in some decent cashflow. I have some money sitting around $30-40k. But Id rather not touch that just to have some security in the event I have some major problems come up.

If you were me.. what would you do.

I'm networking daily, looking to JV with guys out here doing what I want to do already. But I'm trying to wrap my head around a way to get myself in the deal. I'm bringing the deal, I'm willing to organize it. From acquisition to exit and everything in between. would you simply just start asking others to invest in you? how would you structure it? would it be more simple to go get a HML?

Here is a deal I'm currently looking at:

Duplex listed at $500k ( yes, Fairfield county is nuts ) its in Fairfield CT in a highly Desirable area within walking distance to the beach.

ARV- $600k PER SIDE- very good condition

Construction cost: $300K ( total remodel plus adding an additional bathroom to each unit )

so all in for 800k- would still make a pretty penny. How, if you weren't willing to bring the capital would you fund this deal.

Short and sweet question- how the heck do I raise some money without having the lengthiest track record?

Any insight would be great. look Forward to some responses

1Reply
18 views

2 Replies

Jump to latestLatest
  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Michael Junior do you have any experience with these types of rehabs ? If not that’s gonna be s tough order to raise that kind of money

  • Real Estate Broker · Bronx, NY · Member since 2011 · 597 posts · 341 votes
    7y

    @Michael Junior

    Use the track record you have. You can use a mixture of Hard money and private lender money, maybe private lender money for the dp and start of rehab so instead of trying to raise all 800k you might be able to just do under 30% of it. Offer favorable terms for anyone willing to invest in you and let them know they will be your preferred lenders moving forward. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.