Four of the Fastest Ways To Get Capital For A Deal

Thanks to the Federal Reserve, there's more money than there's ever been in the history of mankind, and while people could debate the value of that money, the truth is that it's here and available. One of the best uses of that funny money is to use it to buy hard assets that actually have value! So when you find the deal of a lifetime, here are four fast ways to shore up the capital to buy it and get that paper garbage working for you!

Equity

One fast way to shore up capital is to look at your own balance sheet and see what's available. If you've been religiously paying your mortgage for the last 10 years, then you'll likely have some equity available that you can tap into. You can tap into this in a couple of ways. The first way is a cash-out refinance. My last cash-out refi was at 75% LTV. I owed $79,0000.00 and it appraised at $177,000.00. Do the math and you'll see we were able to pull out a nice chunk of change to re-invest! You can normally tap into this in a matter of weeks, barring no issues arising with the lender.

Home Equity Lines of Credit (HELOCs) are an even faster option. Talk to your bank and it's normally as easy as having them qualify you and write up the loan.

Hard Money

This money can be available in as little as 15 days, depending on the lender. One big benefit to these types of loans is that they're asset-based, which means you don't need to personally qualify with your credit. As long as you're putting some skin in the game and the LTV is <70% you're good to go! 

Private Lenders

Faster and easier than all of the rest, but it may take time to build these relationships on the front end. While we're told that people are out there just waiting to lend money, they are... to people they can trust... First, you have to develop the relationship and then you have to keep their money moving. The goal of any private lender is to get interested in their money, and if it's sitting in their bank account or 401K, that's not the idea. But once you build that foundation, their money can be available in a matter of hours for a closing.

Seller Finance
It's not exactly cash, but it's super fast so I'm adding it here. Someone who's willing to seller finance can close as soon as an attorney can get it scheduled. Just have the attorney write up the Deed of Trust and Promissory Note, schedule closing, and get it recorded.

While there are always things that could prolong the process, and some of these take your own capital upfront, these are four fast ways to shore up the capital you need to help solve your client's real estate problems.