100% Funding through Investor or Hard Money Lender

[Elijah Crowder]

Hey everyone!

My Husband and I are looking to get into real estate fulltime and we are looking for 100% funding through a Hard Money Lender or an Investor that will fund great deals!
Please link or comment them below and I will respond accordingly. Thanks!

[Steven Stokes]

There are several reasons why a HML should be closer to the bottom of your real estate investing plan.

1. Hard money lender is going to be expensive - I don't have to tell you this but being new I don't know if you realize how expensive they will be and it could literally mean the difference between a profitable deal and you pulling money out of your pocket. Cheaper money is better especially when you are starting out. Right now, you do even know what you don't know. So you need to walk carefully through your first few deals to get some experience under your belt.

2. Hard money lenders do not care if you succeed or fail. Hard money lenders only care if they succeed or fail. They are not doing you any favors when they lend you money. When a HML lends you money it means the risk to their money is so low, even if you screw everything up they will still make money.

3. Hard money lenders could slow down your deal thereby making it even more expensive. Depending on the HML they might not give you the money in one lump sum. It's more likely they will want to inspect your work before releasing the next round of funding. Every day it's costing you money to be sitting on this investment (and expensive money). If each inspection takes a week or more, it adds up and not in your favor.

4. Before you begin your real estate investing journey, put together a plan, put together a team (I mean your accountant, attorney, investors, real estate agent), line up your possible financing options.

I know most people on here do not have rich uncles or millions of dollars in the bank. I wish this site focused more on financing sometimes. But that's another subject. What you need to do is go where investors go, join clubs and groups in your area, get your name out that you're an investor. Ask other "serious" investors what kind of deals they invest in and ask if you can exchange contact information if you have some questions. DO NOT TRY TO PITCH THEM YOUR REAL ESTATE DEAL. Find out the deals they love to do, and keep in contact with them while you're doing this kind of deal, ask them for advice, build a relationship with them. Then when you get stuck on the financing part they will either give you advice where to find the money or help you out. But build a relationship. This one secret I'm sharing with you right now has been why I've never needed to use a HML in more than seven years.

Obviously, I could write more but I hope this helps.

Good luck and don't give up. Real estate investing isn't what it used to be but it's still one of the best vehicles for the average person to gain wealth and financial independence. Please don't give up.

Best

Stephen