Funding Your Next Investment
Depending upon the situation, funding a real estate investment can be the easiest part of the deal or the toughest; but when you really stop to think about it, most of the money you are looking for is right in front of you. There are six money sources available in every market within the United States that can serve as your building blocks to financial freedom through real estate.
Again, if you have found the right deal, the financing should be relatively easy. If you are overpaying for a property, you won’t get bank financing, hard money guys will ‘laugh’ at your deal and you might want to think twice about using your own funds. But if you have a GREAT deal on the table, money will find you. A good ‘litmus test’ is ‘if a hard money lender will lend on that property, you have a good deal in the works…’
Real Estate Investing Tip: ALWAYS BE IN A POSITION TO BUY! Get your money situation worked out early and often. You make money buying real estate, and if you don’t have the funds… GET THEM!
You should be a “funds seeker” and focus on trying to use other people’s money as much as possible. There will be less red tape involved by employing this method and it is a win-win situation for all parties (plus no money out of your pocket). You have the ability to build your assets fairly quickly by employing this real estate investing strategy.
There is no “one-size fits all” solution for funding real estate; each situation and deal is different. If you know the rules then it is easy to reach your goals, because you will know what your target is. The solution is to use multiple money sources to change the deal into a no cash out, or what bankers call ‘a rate and term transaction’ by closing deals with equity. When you have equity, then you can use other people’s money to close deals. Follow my blog to learn more about funding your next investment!
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