All Forum Posts by: Bryan Kunka

Curious which route this community thinks makes more sense: starting a real estate investment fund or working with a bunch of private money lenders?

We have flipped 80+ properties at this point and really want to start growing the business.  Our current cash situation isn't going to scale how we need it to, so we have started kicking around the idea of starting a fund.  Regardless of which path we choose, we will need to create a bunch of new relationships to get either path launched.

I have raised VC money in the past, so I believe my partner and I have the skill set and a legitimate need to go down the "creating a fund" path.  However, is it just easier to partner with a bunch of private money lenders?

The pro's of creating a fund is access to large amounts of money instantly (once the fund is raised) to fund your deals, but the cons are the legal, compliance, and costs associated with a fund.

The pro's of the private money solution is a much less complicated relationship than a fund...but the con's are that you have to have a bunch of private lenders ready, willing, and able for every deal you find.

Curious what the BP community would advise?

Hey Milton, I am a credit person. Paying off your installment car loan will hurt your score. If you are trying to improve your score, then keep your installment loan going and open a credit card (which is considered revolving debt...which is rated differently on a credit report from installment debt) and keep very low balances (ideally under 30% of the card limit, but more ideal is under 10% of the limit.) Unfortunately in order to build credit, you need to show you are financially responsible to pay your bills over a long period of time - that's why it's a bad idea to pay the car off early even though it's the financially responsible thing to do. Plus installment loans are generally viewed better on a credit report. You can use CardMatch.com to pick the right credit card for your personal situation and you can use Quizzle.com to look at your free credit report and score. Neither of those sites impact your credit score because they do a soft pull on your credit. Other than that, don't open up too many credit cards at once (maybe 2 cards total), because too much at once impacts your score in a few ways (hard inquiries, new trade lines, and age of credit history). Last, pay your bills on time...late payments really negatively impact your score. It takes time, but if you are proactive, you can speed the process up. Good luck on building your credit!

Hi all, sorry to post this here but I am a student that needs help from real estate agents and not really sure where to find them. I need to have 200 agents fill out this survey which takes less than 5 minutes. Thanks so much for all of your help and honest feedback!!!

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Thanks so much!

Bryan