Financing Apartment Deals

[Jaren Taylor]

If raising all cash would be my primary method for funding these apartment deals, what would be your guys contingency in order from most preferred to least preferred. And how would that effect your overall plan?

[Stuart Udis]

Depending on the transaction sizes you are pursuing, raising money to purchase property without debt requires either an incredible network of relationships or devoting a lot of time and effort to raising money. Why not use bank debt or alternative lender debt if you don't qualify yet for bank originated debt?

Debt is not only the easiest to originate but also recognized as the  cheapest form of capital. Learning how to responsibly use debt is one of the best tools any real estate investor has at their disposal. It will also allow you to focus more of your time and resources in the actual real estate vs. raising capital which usually leads to poor real estate acquisition and operational decisions because raising capital is your full time job leaving an inadequate amount of time for the real estate.