Great Real Estate Financing Ideas for 2013

[Corey Dutton]

Are you actively buying and selling real estate? Here are some helpful financing ideas for 2013:

1. Use hard money loans to do 4 deals at a time – If you want to be a full time real estate investor, you’ve got to be doing 4 deals at a time. This is hard to coordinate with all of your own, private cash. In order to continuously float 4 deals, you should use hard money loans to spread out your cash.

2. Get a reliable list of hard money lenders – private money lenders have to be readily accessible when good deals arise. Know how long it takes each one to perform, so you can tailor each deal with a different lender in mind.

3. Build a resume to obtain a bank line ofcCredit - Once you have 10 deals under your belt, (particularly when using hard money financing) you can take your resume to the bank and ask for a line of credit. Because you’ve shown loans on the properties that have been paid off in a short amount of time, this gives you even more credibility in the eyes of your banker.

4. Cash in some stock and put it into real estate deals – Enough said.

5. Form your own REIT – Most of a REIT's gross income must come from real estate income such as rental income. Form a REIT where you choose the properties and other investors finance them by investing in the REIT. Because the formation and operation of a REIT involves many complex legal, securities, and tax rules, you ought to seek advice from attorneys and accountants before beginning the process of forming a REIT.

6. Make "Gap" Loans out of your SEP IRA - Make loans to other real estate investors out of your SEP IRA and provide gap financing on their good deals. This way you can still get a percentage of the profits.

This forum has so many contributors with ideas for financing real estate investments, please share your own best ideas!