How to fund Initial Investments

[Kent Kettell]

How did you look for funds for your first project?

[Randall Alan]

Quote from @Kent Kettell:

How did you look for funds for your first project?

 Your Savings and your W2 Income would be the first two places to look - in that order.  You have to have skin in the game.   Few if any lenders are going to provide you 100% financing, so it starts with you.  So if those aren't in order, you start by getting them in order.  You could also possibly partner with a relative who knows / trusts you to make up for any shortcomings you may have.

After that, presuming you have good credit, you can go to a mortgage broker and they will evaluate your credit and financial "worthiness" against their requirements for their lenders to lend to you.  In 10 minutes of looking at your application they can tell either "This will work", or "You need to fix these things before it will work."

Beyond that there are hard money lenders who charge higher rates to take on more risk... but they again start by looking at you, your skill set, and your previous experience in both managing your credit, as well as your real estate investment history.  If you have little money, experience, positive credit, they probably won't be much help. 

Hope it gives you a start towards achieving your goal.

Randy

[Jackson Ebersole]

A pretty common way is to go through a private lender. Usually you need to have some experience before getting funding, however it will vary largely on the size of the rehab. Usually people with good credit, income, can get funding for light, cosmetic rehabs (kitchens, baths, paint, landscape). However there are more factors as well. Like where you live for example. 

Hope this helps.

Cheers,

Jackson



 

[Robert Bell]

Talk to closing attornies to find private lenders.

[Lex Layton]

Quote from @Robert Bell:

Talk to closing attornies to find private lenders.

 Would you recommend googling local closing attorneys and just emailing or calling their office asking what PL they recommend?  This may sound like a ridiculous question but gotta start somewhere :) I have the skills and experience to pull off a successful flip but brand new to the lending world. Thanks!

[Peter Mckernan]

Quote from @Kent Kettell:

How did you look for funds for your first project?

 I partnered with a guy 50/50. I saved up and he saved up, first rental we ever bought (I ever bought). I bought it for 247K in 2013 and just sold it for 650K two weeks ago with a 1031 exchange getting out of the partnership to go do our own things. 

On flips, I typically JV with people 20/80... 50/50 etc. or Wholesale the deals

[Tom S.]

@Lex Layton  Similar to Peter's experience above, for my first investment property the partner put up the downpayment, and I got the loan in my name.  This way we each had something into the deal.  We split everything 50/50 after that, and it worked well for us.

[Alex Olson]

HELOC then cash out re-fi or save up big time and make it a real priority. Stay out of what the Jones are doing and do your own thing.

[Ahmed Hafez]

Hello everyone, 
I've done 3 buy and hold rental properties, and now I want to do flips, I need investors and I have some that have shown interest, in addition to speaking to private lenders that are willing to fund 70% of the LTV (based on the desired property)
I'm seeing a lot of deals from wholesalers,  but the problem is, some of them close in 2 weeks and some as long as a month, and they don't take conditional offers, and the good ones fly off the shelf really quick.
My question is, how does someone like me close one of those deals within this short period, how do you arrange the equity and financing with little to no inspections sometimes even.
I'd like to know how do I prepare myself to be able to close one of these good deals right away when they are offered to me and many others?

Thank you in advance!