They require all cash to buy so the people there have money.

What areas do you find the best ROI on your flips? This topic is up for HEAVY debate. After designing over 100 flips in twelve states, here are the key areas in which we've found the best ROI on flips:1. The Kitchen: ...

What key factors influence your decision to partner with a lender for private money in real estate?

I’m interested in using hard money for a BRRRR or flip project, and I’d like to take the first steps toward making this a reality.

Here’s a breakdown of the main ways investors fund their first deal while minimizing their own cash outlay:1.Private Money & Hard Money Loans– These lenders focus more on the deal than on your personal finances.

Here’s the breakdown:Financing & Investment Details: Total Project Cost: $750,000 Purchase Price: $450,000 Rehab Cost: $300,000 Total Investment Needed: $750,000 Private Money Loan: $550,000 (1-year term at 9% interest) My Cash Investment: $200,000 Interest for Private Money Loan: $49,500 Closing Costs for Private Money Loan: $0 Closing Costs for Refinance: $27,000Total Cash in the deal:$750,000 + $49,500 + $27000 = $826,500Exit & Refinancing: ARV: $900,000 After renovation, I refinance at a new loan of ~$675,000.

The property will be strictly for investment purposes, not a primary residence.I’ve been looking into two potential financing options:Hard Money Lenders (HML) – I’m drawn to this option for its speed in closing, but I know the rates can be higher.DSCR Loans – This seems like a great option for long-term rentals, but I’m unsure if it’s the right fit for my auction property since it might need some rehabbing.I’m also considering purchasing through a land trust or an LLC to add a layer of protection and privacy.So, my questions are:What’s the best way to approach financing for auction properties?

This will cost you money on the back end.

The long-term relationship, with those we genuinely like, over dozens of deals, is where we make our money.

Moreover, you can also explore partnerships, i.e., you find the deal, and your partner brings the money.