Getting Capital For Cash Deals

[Michael Hammer]

I have been a member of BP for a while but this is the year I jump in, and the first time posting anything, so be gentle. I am in the west suburbs of Chicago and looking to begin investing in real estate by buying homes that can be quickly flipped, or held and rented if the cash flow works. My problem is getting capital. I can't use a conventional loan because I lack the down payment necessary. I would like to get a line of credit to start but my only substantial asset is my IRA.

I've been in the construction industry for 30 years so the rehab work doesn't phase me. I plan to be conservative and start small so the mistakes are smaller. I have a network of people that will help me find the deals and either sell or rent them when I'm done. I just don't have the capital to get started. I'm looking for advice on what my options are without selling my soul to the devil or getting in bed with a scammer. I appreciate any help you can offer.

[Nathan Emmert]

Tell everyone you know that you are a real estate investor... Facebook, LinkedIn, Match.com... I don't care, every family member, friend, co-worker, and other acquaintance should understand you invest.  From there, hopefully money comes to you.

Have a good pitch... let them know the value you offer them... what sort of business association you'd be looking to do, the risks, the returns, etc.  You want to come across as knowledgeable without being too slick... they want to trust you but not feel like they're being sold something.

Beyond that, look to do HMLs.  They are pricey but you can sacrifice some return for lack of working capital.  It would help you build up the cash you need to not use them at all moving forward.