Funding Basics For The Newbies

[Adrian Gonzalez]

Good evening BP,

I'm taking notes on the basics of REI so that I can build a personal strategy book and this may help the newbies like myself. Here are my questions:

• What is needed to apply and to be approved for a HELOC?
• Can you use a HELOC on a seller finance deal?
• What does a hard money lender require?
• What are common terms and is a down payment needed for HML financing?
• What combinations of creative financing do you use and why?

Thanks!

[Caleb Jordan]

@Adrian Gonzalez Also on hard money, they will require an LLC. They will be first position only, that means no second liens or mortgage on property. If you are purchasing a home on a hard money flip loan you can get loans with 25% to 10% down. They may want proof of experience. On a buy and hold hard money loan you are looking at 20-25% down Most HML will want 6 months reserves.