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Updated over 4 years ago on . Most recent reply
"Funding the Deal" -- So many OPTIONS, SHARE YOUR STORIES!!!!!!!!
What's up BP fam!
I personally get fired up from reading your stories, so please keep sharing. I've been reading a lot of posts here on the forum and I'm noticing more and more that there are a lot of people that end up funding their deals using unique financing options from smaller banks. Many of which have seemed to be that cherry on top in turning a good deal into a GREAT deal. (My favorites so far are when the cost of rehab is included)
I would love to here from all of my investors on where you feel you've had your greatest successes in finding funding for your deals.
Bonus Question: For those of you that have used smaller/local banks for funding, how did you go about finding out what those "portfolio lenders" offered to fulfilled for your particular desire? Did you call around to every small bank in the city? Did you use referrals from other investors? Did you simply research using the internet and go from there?!
SHARE YOUR STORIES!
Most Popular Reply
@Alliya Pinckney I've found a lot of success in first getting a property under contract and then finding the money afterwards. I do everything in an LLC and so i'll go to a local bank or hard money lender and get as much as they'll lend me. If I have to do an 80% loan, i'll start texting all my friends asking who's got $1-5k laying around to get the other 20%, and I offer them a flat 10% return when I sell or refi. Keep it simple. I've done the same thing with paying for the remodel component of a flip, because I have no monthly payments on that extra cash.
Second, as far as a bank goes. I had a millionaire real estate investor mentor tell me that, he used to just walk into a bank, ask to speak to the VP and say "Hey, I heard you got money, and I want some" lol. So, of course that's exactly what I did too! Since then, that VP has funded 3 deals of mine at 100% financing (1 rental, 2 flips) because they were under market value and the flips he did a Subject To appraisal. (commercial loans).