Typically private money is borrowed from an ordinary person that has capital getting a low rate of return.

Lets see you highly leveraged your money, you raised private capital, you used owner financing, you have great cash flow, there is not much you didn't do great on.

Assuming you get a private loan to finance the purchase then do a term refi to get the capital outlay back out it usually isn't a great cash flow place.

There will be more deals that you can be more involved in and make more on when you learn more and are prepared to fully capitalize on the opportunity.

I own a privage funding business that provides capital to businesses and investors who are looking for cash for their projects.

Right now, I really don't have much capital and my debt to income ratio is horrible-which would make applying for and obtaining home loans next to impossible.

So, I'm going to keep my little beginner thread alive to see if anyone passes through with some personal advice or experience that they think can help out someone in my position.I'm (almost) 21, have pretty lame credit, very little capital, but a LOT of motivation.

I've used these 2nds to allow investors to reposition their equity and arbitrage the capital in better performing opportunities as well, it can be a great planning tool.

(this came from the person that usually handles my mortgage loans for residential properties and multi family)What would be my best strategy considering that i dont have much capital to invest in this deal as most of my capital is tight up in a partnership which is still looking for its first deal.What are the requirements as far as down payment,interest,closing fees and what other options besides commercial loans do i have?

If you say you make a lot of money in your job, then save as much as you can and maybe start off either doing a flip or wholsale just to gain more capital.