What are my financing options?: No employment and no liquid cash

[Steven Bonfante]

Hi All,

I am a newbie still trying to figure out how to get financially ready for my future first deal. I want to get everything prepared so can present a valid Proof of Funding once I start making offers.

My dilemma is two fold. I am currently unemployed and do not have any liquid cash. I have a decent IRA but not yet sure of the ramifications of using any of that for investing.

I believe as far as financing goes my options are:

• A Hard Money lender for the purchase and rehab costs. I met one recently at a local meetup who was very helpful in explaining how Hard Money works. Also it seems they focus more on qualifying the deal as opposed to my personal employment situation. I would just need to prove I can cover the additional costs.
• A private money lender for additional costs (down payment and fees).
• PLEASE NOTE: Unless they are holding out, I do not have any wealthy friends or relatives.

So my questions are:

• Am I barking up the right tree in making these assumptions?
• Are there any other financing combinations I should consider?
• Is my IRA out of the question, at least for the additional costs? I know there is a pretty hefty early withdrawal penalty.
• Does BP or any service out there on the web offer a private money lender list? (I don't think this violates the "No soliciting for lenders rule")
• If\when I find a private money lender, are there any guidelines for the terms and conditions?

I think that covers it for now.

Thanks,

Steve