Monthly Archives: August 2022

Can You Get a Hard Money Loan for Owner Occupied Houses?

August 30, 2022Arizona hard money Mortgagebigdaddydennis

Owner-occupied hard money loans are additionally thought of Precept Residence Loans, various financing, and private money loans.

Causes Why Debtors Use Owner-Occupied Hard Money Loans

Unhealthy Credit score

Hard to show earnings

Self Employed

or coping with a downside property

Typical debtors repay this loan by refinancing after being certified for a typical or FHA loan.

Widespread Makes use of Of Owner Occupied Loans

Shopping for a first or second house.

Refinance an present loan.

Money out for repairs or reworking.

Money out for debt consolidation.

Owner Occupied Hard Money Loan Program Choices

100% financing is out there if the borrower has one other property that’s free and clear, or has a small mortgage with worth ( substantial fairness) to pledge as further collateral ( aka Cross Collateralized Loan).

Hard Money Lender is making actual property loans to each Buyers & Owner Occupants in Arizona.

Typical hard money applications for owner-occupants are under.

NO PRE-PAYMENT PENALTY

Usually no pre-payment penalties on our loans.

PURCHASE

Down fee: 30% – 40%.

As much as 60% or 70% of the appraised worth

As much as 100% financing with a 2nd free and clear property as further collateral.

REFINANCE

As much as 65% of the appraised worth

As much as 100% financing with a 2nd free and clear property as further collateral.

ORIGINATION FEE

A loan Origination payment of two to six factors (2 to six% of the Loan Quantity).

Necessities For Owner Occupied Hard Money Loans

Revenue should have the ability to be verified by a third occasion supply.

If the owner-occupied loan is taken into account a “high-cost loan”, hazard insurance coverage and property taxes have to be impounded for the first yr of the loan. That is the borrower’s accountability.

There are disclosure legal guidelines that require us to make you conscious of the loan phrases earlier than signing any loan paperwork. These are the identical necessities as a conventional financial institution loan.

Apply for an Owner Occupied Hard Money Loan

If you’re to see in case your qualify for an owner-occupied hard money loan in Arizona, give us a name as we speak at 602-497-4444 or fill out our loan application to get began. Getting your owner-occupied hard money loan is easy and quick, and we do the funding! So if we are saying you’re authorized you’d higher begin packing to maneuver into your new house!

Owner-occupied hard money loans program makes it straightforward for you to get the brand new house you want regardless of not having credit score, having low credit, and even should you’re not from america.

Owner-occupied home loans using private hard money have simpler necessities than investor loans and might even profit from our cross-collateral 100% LTV loan possibility.

Dennis Dahlberg
Dealer/RI/CEO/MLO
Stage four Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Equal Housing Alternative. This isn’t a Good Religion Estimate and this isn’t a Assure to lend and shouldn’t be thought of as such. Prices, charges, estimates and phrases can solely be decided after completion of a full software. Precise funds will fluctuate primarily based in your particular person state of affairs and present charges. APR for loans fluctuate from 7.99 – 29.5% and relies on Credit score Rating, Down Cost, LTV, Revenue. Mortgage charges may change day by day. To get extra correct and personalised outcomes, please name 623 582 4444 to speak to one in all our licensed mortgage specialists. Phrases and circumstances of all loan applications are topic to alter with out discover. Stage four Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the unique use of the supposed recipients, and should include privileged and confidential info. If you’re not an supposed recipient, please notify the sender, delete the e-mail out of your pc and don’t copy or disclose it to anybody else. Your receipt of this message isn’t supposed to waive any relevant privilege. Neither this e-mail nor any attachment’s set up a shopper relationship, represent an digital signature or present consent to contract electronically, except expressly so acknowledged by Dennis Dahlberg RI/CEO, Stage four Funding LLC, within the physique of this e-mail or an attachment. To the extent this message contains any tax or authorized recommendation this message isn’t supposed or written by the sender for use, and can’t be used, for authorized or tax functions or recommendation.

Concerning the Creator: Dennis has been working in the true property business in some capability for the final 40 years. He bought his first property when he was simply 18 years previous. He shortly discovered in regards to the wonderful funding alternatives offered by trust deed investing and hard money loans. His need to assist others make money in actual property investing led him to specialise in various funding for actual property traders who could have bother getting a conventional financial institution loan. Dennis is obsessed with various funding sources and sharing his data with others to assist make their goals come true. Dennis has been married to his great spouse for 43 years. They’ve 2 lovely daughters 5 wonderful grandchildren. Dennis has been an Arizona resident for the previous 40 years.

Are you looking to become a private lender? How to find attract a Private Lender

August 30, 2022Arizona hard money Mortgagebigdaddydennis

How To Attract Buyers for Private Arduous Cash

Whereas every investor could have an agenda when it comes to a explicit exit technique, the returns offered by an funding are of the utmost significance. The ROI is the motivation behind any investor. In spite of everything, money means safety. Who wouldn’t need to maximize their ROI? Having stated that, private lending is probably probably the greatest methods to improve returns. Private mortgage lending has usually offered an annual return of Eight-10%, primarily based on the historic rates of interest charged to debtors.

The Professionals of Private Lending

Assuming you have determined to pursue turning into a private money lender, it will be significant to familiarize your self with the advantages it provides borrowers. Nonetheless, it’s equally vital to know the drawbacks as properly. As with all new enterprise enterprise, you will face each constructive and destructive circumstances. The choice of whether or not or not to proceed with this moneymaking technique lies within the stability. Do the professionals outweigh the cons for you? The next illustrates a number of the largest execs concerned in private investing:

The Professionals:

Dependable Money Circulate: Whereas there are not any ensures, private money lenders can usually count on an annual return someplace between Eight% and 10%. Relying on the loan construction, there could also be different methods wherein earnings are realized, like curiosity.

Capital Preservation: In loaning your personal money, your funding shall be secured by a first place “precedence” lean on the property in query. Moreover, the loan-to-value (LTV) ratios are usually 60-70%, permitting the invested capital to be preserved within the occasion of foreclosures. Structured accurately, your investments are very secure.

Diversification: As a private money lender, you are inspired to diversify your portfolio.

Minimal Volatility: Loans are usually quick in size (often no more than 12 months).

Passive: Private money lenders earn comparatively passive revenue, in that their money is engaged on their behalf. The return on funding will not be correlated to the period of time they put in.

Private Lenders: The First three Steps To Get Began

Whether or not you are focused on having your money work for you now or sooner or later, understanding what it takes to get began is a crucial step. Having stated that, it’s crucial to equip your self with the correct instruments ought to you resolve to become a private money lender. Earlier than you make the transition from the borrower to lender, make sure to familiarize your self with the next:

Make Certain You Qualify: Earlier than turning into a private money lender, you should become seasoned. Primarily, you must be actively investing and utilizing the methods which might be provided to you. Furthermore, if you have already rehabbed, wholesale , or turned earnings with some relative diploma of success; then there may be a good likelihood you are prepared to make money with the money you have already amassed. You actually can’t know the place you are going till you are accustomed to the place you have been. Offered you meet the , you can even want to be sure that you can afford to become a private money lender. In different phrases; can you handle your month-to-month bills whereas concurrently working as a private money lender? In case your reply is sure, turning into a private money lender could also be proper up your alley.

Decide An Angle: As a private money lender, there are a number of routes to contemplate. Nonetheless, your selections shall be totally depending on the quantity of funding you have accessible, how lengthy you need your money tied up, and the time you have to dedicate to a explicit alternative. To raised perceive the instructions you can take, contemplate the next standards:

Residential vs. Industrial

Brief Time period vs. Lengthy Time period

Direct vs. Passive

Every of those choices will become accessible to you as a private money lender. It’s up to you to select the trail you need to take.

Communicate With A Skilled:

These set on turning into private money lenders ought to search counsel from a skilled that has already performed it. Furthermore, talking with somebody that has already performed what you need to do can lead to some precious in sight. Nonetheless, if you select to lend straight, you ought to converse together with your crew of pros. This consists of your Escrow Firm, Title Firm, legal professional, and anybody else who could also be of concern.

It’s a fair higher thought to converse with a crew of people that have been private lending for a whereas. Whereas you might want to strive direct lending, discovering a private lending firm with a good monitor file is a superb place to begin. Bear in mind, investing with a pool of individuals is without doubt one of the most secure methods to go.

For Extra Data on private lending…

If you have realized success in actual property up to now, it might be time to make investments your hard-earned money into one other side of the trade. Be taught the anatomy of a private loan, how to establish probably the most certified debtors, and what paperwork and authorized documentation you can count on.

Equal Housing Alternative. This isn’t a Good Religion Estimate and this isn’t a Assure to lend and shouldn’t be thought of as such. Prices, charges, estimates and phrases can solely be decided after completion of a full software. Precise funds will range primarily based in your particular person scenario and present charges. APR for loans range from 7.99 – 29.5% and relies on Credit score Rating, Down Fee, LTV, Revenue. Mortgage charges might change each day. To get extra correct and customized outcomes, please name 623 582 4444 to discuss to considered one of our licensed mortgage consultants. Phrases and circumstances of all loan packages are topic to change with out discover. Stage four Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the unique use of the meant recipients, and should comprise privileged and confidential data. If you are usually not an meant recipient, please notify the sender, delete the e-mail out of your laptop and don’t copy or disclose it to anybody else. Your receipt of this message will not be meant to waive any relevant privilege. Neither this e-mail nor any attachment’s set up a shopper relationship, represent an digital signature or present consent to contract electronically, except expressly so said by Dennis Dahlberg RI/CEO, Stage four Funding LLC, within the physique of this e-mail or an attachment. To the extent this message consists of any tax or authorized recommendation this message will not be meant or written by the sender to be used, and can’t be used, for authorized or tax functions or recommendation.

Concerning the Creator: Dennis has been working in the true property trade in some capability for the final 40 years. He bought his first property when he was simply 18 years previous. He shortly realized concerning the superb funding alternatives offered by trust deed investing and hard money loans. His want to assist others make money in actual property investing led him to focus on different funding for actual property traders who could have bother getting a conventional financial institution loan. Dennis is obsessed with different funding sources and sharing his data with others to assist make their goals come true. Dennis has been married to his fantastic spouse for 43 years. They’ve 2 stunning daughters 5 superb grandchildren. Dennis has been an Arizona resident for the previous 40 years.

Best Scenarios When A Private Money Lender Is Best

August 29, 2022Arizona hard money Mortgagebigdaddydennis

Scenarios When A Private Money Lender Is The Best Financing Possibility

In what circumstances would the help of a private money lender be your best choice for financing a transaction?

A frequent impediment amongst actual property traders is financing. Whereas some have the working capital, they want from day one, others must search methods to acquire it. Typically, the typical investor will be unable to fund a take care of their very own money, which implies the help of different financing is required. Additionally, most profitable actual property offers are predicated on timing and capital, as critical sellers are primarily seeking to shut offers yesterday. That stated, actual property traders might discover themselves in conditions the place the advantages of a private money lender are their best choice.

A private money lender is a person that loans money to fund actual property purchases and transactions. They function a lot in a different way than an institutional financial institution, as they provide upfront financing with a particular payback interval (anyplace from six months to a yr) for actual property traders seeking to increase the worth of their property over a brief interval. The enchantment of a private money lender is their functionality in bringing pace and effectivity to each transaction, particularly in relation to funds. They not solely have the means and intent to spend money on your corporation, however they’re simply as eager about working with you as you’re with them.

three Scenarios When A Private Money Lender Is Best

As a result of private money lending relies on relationships, as either side stand to realize one thing from each deal, it may be advantageous in a number of methods for newbie actual property traders. Listed below are three examples of when it’s greatest to make use of a private money lender:

1. You Want Money

The attraction to private money lenders is the ability to obtain cold, hard cash. Gaining access to private money allows traders to make gives they usually wouldn’t have the ability to make. This upside is important, as nothing has the ability to entice a vendor greater than a money provide. This method is right for traders seeking to purchase cut price offers or distressed properties.

“Generally one of the simplest ways to win a bidding conflict and keep away from paying a better worth is to extend your down fee,” says Coldwell Banker agent Robert Pennington. “Sellers favor sturdy patrons. In the event you can afford to make an all-cash provide, accomplish that. That’s virtually all the time a particular method to slam-dunk a sale.”

It’s no secret: the benefit of an all-cash provide lies in its means to sway the vendor into taking your deal. Money gives have a higher likelihood of being accepted, as nearly all of distressed sellers don’t need to take care of the burden of a financial institution. Together with prolonged closing occasions, the uncertainty of a traditional mortgage is one more reason why sellers want money gives over different financing choices. The ability of money gives may also assist to gasoline extra offers for traders.

2. You Want Financing Instantly

Securing financing in a well timed vogue has confirmed to be the bane of existence for many new traders. Finding a real estate deal is nice, however if you happen to don’t have the money to fund the deal it’s a waste of time. Normally, traders looking for to amass a profitable deal in actual property will want working capital instantly to shut the deal. Traders seeking to capitalize on pace and effectivity when making a deal ought to search private money lenders. Reasonably than ready an prolonged interval with a financial institution, traders can transfer shortly and extra swiftly to safe time-sensitive offers, serving to to capitalize on alternatives that in any other case wouldn’t have been out there.

Though a private money lender will demand a value of someplace between six and 12 % curiosity on money borrowed (greater than a conventional financial institution or institutional), the good thing about an actual property investor is within the type of quantity and effectivity, as you can shut on extra offers in a shorter interval. As an investor, this is a useful asset.

three. Your Credit score Isn’t Up To Par

A private money lender could be useful in some ways, however none greater than these with below-average credit score scores. The enchantment of private money lending is the power to borrow money with out being topic to conventional credit score tips and necessities. Banks and credit score unions are usually much less keen to work with traders which have less-than-perfect credit score or can’t present proof of a gentle earnings. Nonetheless, with a private money lender, traders can sit down and talk about their choices, together with negotiating the quantity and phrases that make sense for them.

Traders have extra choices with private money lending, as lenders will make loans that the typical financial institution would sometimes go on. Nonetheless, it can additionally come at a value. The usage of a private money lender will entail a increased fee than different loans. In some instances, private money lenders may even delineate factors (three to 5) to symbolize additional share charges primarily based on the loan quantity, like hard money lenders. That stated, it’s necessary to notice that each lender may have its personal set of prices, so traders are suggested to conduct their due diligence.

The ace up any profitable actual property investor’s sleeve is their aptitude for securing capital. The perfect traders not solely have the sources however the entry to acquire working capital when wanted. Traders seeking to make their mark in the true property market must significantly contemplate the usage of a private money lender, as it could take their real estate business to the subsequent degree.

That stated, its necessary traders take the required time to seek out suitable lenders that not solely establish with their wants however their monetary calls for as properly. Not each private money lender is identical, and each lender may have its personal algorithm in relation to lending money. Finished proper, the usage of a private money lender can assist traders acquire extra offers and in the end increase the success fee of their enterprise.

Dennis Dahlberg
Dealer/RI/CEO/MLO
Degree four Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Equal Housing Alternative. This isn’t a Good Religion Estimate and this isn’t a Assure to lend and shouldn’t be thought of as such. Prices, charges, estimates and phrases can solely be decided after completion of a full utility. Precise funds will range primarily based in your particular person state of affairs and present charges. APR for loans range from 7.99 – 29.5% and relies on Credit score Rating, Down Cost, LTV, Earnings. Mortgage charges might change every day. To get extra correct and customized outcomes, please name 623 582 4444 to speak to one in all our licensed mortgage specialists. Phrases and circumstances of all loan applications are topic to vary with out discover. Degree four Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the unique use of the supposed recipients, and should include privileged and confidential data. In case you are not an supposed recipient, please notify the sender, delete the e-mail out of your laptop and don’t copy or disclose it to anybody else. Your receipt of this message is just not supposed to waive any relevant privilege. Neither this e-mail nor any attachment’s set up a shopper relationship, represent an digital signature or present consent to contract electronically, until expressly so acknowledged by Dennis Dahlberg RI/CEO, Degree four Funding LLC, within the physique of this e-mail or an attachment. To the extent this message contains any tax or authorized recommendation this message is just not supposed or written by the sender for use, and can’t be used, for authorized or tax functions or recommendation.

In regards to the Writer: Dennis has been working in the true property business in some capability for the final 40 years. He bought his first property when he was simply 18 years previous. He shortly discovered in regards to the wonderful funding alternatives offered by trust deed investing and hard money loans. His need to assist others make money in actual property investing led him to specialise in different funding for actual property traders who might have hassle getting a conventional financial institution loan. Dennis is obsessed with different funding sources and sharing his information with others to assist make their goals come true. Dennis has been married to his fantastic spouse for 43 years. They’ve 2 lovely daughters 5 wonderful grandchildren. Dennis has been an Arizona resident for the previous 40 years.

Guide To Financing Investments A Real Estate Investor’s Guide to Hard Money Lending

August 28, 2022Arizona hard money Mortgagebigdaddydennis

What Is Hard Money Lending? The whole lot You Want To Know

The fundamentals of understanding what is a hard money loan symbolize step one in breaking down actual property financing. Hard money loans are, in spite of everything, an actual property investor’s greatest good friend; they’re the quickest path to securing a deal. Nonetheless, hard money lending can get difficult rapidly, so that you want to notice what you might be moving into earlier than making any choices for your self.

When exploring real estate hard money lending, you want to comprehend a number of questions: What are the professionals and cons of such a technique? When do you have to use private financing for real estate? The place are you able to find hard money lenders for real estate? The extra about hard money, for that matter, the higher. This information ought to serve to lay a strong basis for all the pieces you want to learn about one in every of in the present day’s biggest sources of capital.

What Is Hard Money Lending?

Many investors looking for alternative financing that doesn’t contain their native financial institution might have heard the time period “hard money.” They might have even requested themselves a easy follow-up query: what is hard money lending?

Hard money lending is a short-term loan obtained from private traders or people at phrases which may be strict than a conventional loan. Although the phrases of this artistic financing possibility could also be stricter, this type of private financing for actual property usually has extra lenient standards.

Hard Money Lending FAQs

1. The Huge-Image of Hard Money Lending

Hard money lending is one other means an investor can finance their actual property tasks outdoors of the normal mortgage means. It is a short-term loan secured from private traders or people as a substitute of different conventional establishments like banks or credit score unions.

Hard money lending is usually utilized by traders who purpose to enhance or renovate a property and promote it. Given that you would be able to often get a loan in a matter of days (as opposed to weeks from banks), this can be a superb selection for home flippers and actual property builders. That is additionally an possibility for traders who solely want to do fast fixes to increase a property’s worth, then safe one other loan based mostly on the brand new worth to repay the hard money lender.

2. Hard Money Lending Vs. Different Lending Varieties

The principle difference between hard money lending and other types of loans is that the sort of financing doesn’t focus in your credit score historical past or revenue as collateral. As a substitute, lenders will see the property’s worth because the figuring out issue, emphasizing its after-repair worth (ARV). ARV is the price of the property as soon as your renovations are completed.

Different variations embrace:

· Hard money lenders don’t put money into main residences. Proprietor-occupied residential properties are topic to many guidelines and laws, thereby rising the danger for lenders.

· Hard money lenders don’t promote loans to Freddie Mac or Fannie Mae. Usually, lenders use their very own money or increase it from a pool of traders. The loan quantity relies on their property specialization (if there are any) and the dangers they’re snug taking.

· Hard money loans are short-term. You’ll not have the posh of 15 to 30 years to repay your loans. Hard money loans are sometimes needing to be repaid anyplace between 6 to 36 months.

· Hard money lenders have their very own lending standards. A private lender, for instance, might be your good friend, household, or enterprise affiliate. As such, they might not have any preset standards earlier than lending you money, supplying you with extra flexibility in negotiating phrases. Hard money lenders, however, include a particular set of upfront factors, rates of interest, and outlined durations.

three. What Are Hard Money Loans Used For?

Hard money loans can be utilized for all kinds of funding sorts and functions. Within the real estate industry, hard money loans are generally used to buy each residential and commercial properties. That is partly due to the approval necessities and since hard money lenders can work on the short timeline that closing offers typically calls for.

Imani Francies, an investing skilled with Loans.com, says that “loans of final resort or short-term bridging loans are referred to as hard money loans. Real property serves as collateral for a hard money loan. Due to their lack of pink tape, hard money loans are perfect for rich traders that want to get funds for an funding property swiftly”.

Hard money loans are additionally generally used to repair and flip properties. These traders could also be much less nervous about increased rates of interest as a result of the tip objective is to promote the property for a revenue as soon as the rehab is completed. Hard money loans make an ideal match as a result of they can be utilized to buy properties and make renovations.

The Execs And Cons Of Hard Money Loans

I keep that hard money loans symbolize one of many single most advantageous funding alternatives for traders to make the most of. If any, few sources of capital can compete on the identical stage as hard money and supply the identical aggressive edge. It’s hard money loans, in spite of everything, that many traders should thank for buying their offers within the first place. That mentioned, hard money shouldn’t be with out its personal caveats. Loren Howard from Real Estate Bees states that “hard money loans are fast to approve and fund and can speed up the entire real estate investment process. However, they have much higher rates than a traditional loan and are not suited for non-real estate investors”. Regardless of its superior advantages, there are downsides to hard money that warrant the consideration of each investor.

Let’s have a look at the professionals and cons of hard money so you possibly can weigh the professionals and cons your self.

Execs

Securing financing with a hard money lending loan presents you many advantages, together with:

· Velocity: The Dodd-Frank Act is monetary reform laws enacted up to now decade. It got here with new laws on mortgage lending, which implies a number of time (typically, months) is required for an investor to shut a loan. However, hard money lending is fast, as you possibly can safe a loan in days or perhaps weeks (relying on negotiations). Time is important, particularly for big growth tasks, and hard money lending might help pace that course of alongside.

· Flexibility: Phrases could be negotiated with hard money lending loans since you might be dealing instantly with particular person traders. Banks usually are not as versatile.

· Collateral: With hard money financing, the property itself is your collateral for the loan. Some lenders even settle for different property, like your retirement account or residential property below your title, as a foundation for beginning a loan.

· No “Purple Tape”: Getting a loan for an funding property with a conventional mortgage is troublesome, if not unattainable. Conventional debtors want to fear about credit score rating, LTV ratios, debt-to-income, and several other different indicators they want to meet standards for. Nevertheless, hard money lenders function as asset-based lenders who’re extra involved with the property than the borrower’s credentials.

· Comfort: There’s something to be mentioned for the comfort of having the ability to shut with money. Having to provide a lender with financial institution statements, revenue documentation, tax returns, and leases can develop into overbearing and eat your focus and power. Hard money, however, cuts out the intermediary and a number of the complications.

· Quantity: Hard money lenders enable traders to leverage different individuals’s money. Which means traders might probably fund multiple deal at a time. Conventional loans will do no such factor. If you would like to fund a number of offers at a time, it’s best to take into account a hard money loan.

· Aggressive Edge: Hard money permits traders to beat out the competitors, or at the least these utilizing a conventional loan. If for nothing else, sellers favor the 2 issues hard money presents: money and a well timed transaction.

Cons

There are, nonetheless, sure disadvantages to utilizing hard money for real estate investments:

· Price: The comfort that comes with hard money lending could also be its main profit; nonetheless, it is usually its primary downside. Provided that hard money lenders are at increased threat than debtors, many might demand up to 10 share factors increased than conventional loans. Rates of interest vary from 10 to 18 p.c. Anticipate different charges to be additionally at a comparatively elevated charge, together with origination charges and shutting prices.

· Quick Reimbursement Schedule: A shorter reimbursement interval is the value to pay for having the ability to get a property listed available on the market ASAP. This may be anyplace between 6 to 36 months. Just remember to can promote the property and revenue the soonest time potential.

Hard Money Mortgage Charges

Hard money loan rates are sometimes a lot increased than fixed-rate mortgage loans. In contrast to the typical 5.5% fixed-rate mortgage loan, a hard money loan sometimes falls between eight% and 18%. As well as, hard money loans might not cowl the total worth of the property you search to finance. If a hard money loan doesn’t cowl the total worth, chances are you’ll be required to current the next down cost on the property or discover an extra supply of financing to shut the deal.

When To Use Hard Money for Real Estate

Although hard money lenders will typically situation loans for nearly any sort of property, sure sorts of property investments have been completely made for hard money. Rehab tasks, development loans, and land loans have been made to be financed via hard money.

For instance, when flipping a home traders want entry to funding for each the acquisition and renovation prices. André Disselkamp from Finsurancy advises that “these projects typically happen on a quick timeline, meaning investors do not have time to wait through the process of a traditional loan approval”.

This doesn’t imply that different sorts of investments shouldn’t be financed via hard money. In the event you, the client of a property, have credit score points, otherwise you want to act rapidly on a deal earlier than it disappears, the speed and convenience afforded by a hard money loan could be value its weight in gold. In these instances, hard money loans can be utilized to buy residential or commercial properties.

Discovering Hard Money Lenders for Real Estate Investing

Many new traders fret over how they are going to discover hard money lenders to get transferring on the financing of their tasks. However listed here are a few easy methods to strategy this:

· REIA or MeetUp Conferences: Usually hard money lenders will communicate at native actual property occasions. If not, ask fellow members to see in the event that they know any reliable lenders.

· Real Estate Agent or Conventional Lender: Ask that realtor, or mortgage dealer, in your actual property community in the event that they know a hard money lender you can do enterprise with.

· Google “Hard Money Lender”: Simply watch out, there are some unscrupulous people on the market. Ensure to ask for references and discuss to fellow traders to get their opinion.

Working With Hard Money Lenders

Working with hard money lenders can be much less completely different than going via a conventional financial institution for financing. To start with, hard money lenders usually are not regulated in the identical means as conventional financing establishments. The shortage of laws means the principles of the loan can be completely different. Debtors can negotiate instantly with lenders on the loan phrases. Hard money lenders will determine what to settle for at their very own discretion, particularly in regard to credit score scores, debt-to-income ratios, and extra. Remember that crucial factor hard money lenders are on the lookout for is a return on funding. Melanie Cohen from Instaya advises to “guarantee that the property is value funding and talk its potential to your lender. In comparison to a conventional loan, working with hard money. lenders are extra about funding potential than your personal monetary standing”.

How Does Hard Money Lending Work?

Provided that these are private people, each hard money lender is completely different. As said above, these lenders include their very own necessities, together with the method they want to shut the transaction.

To offer you a common thought, that is the standard course hard money lending takes:

1. Discover a hard lender close to you. Don’t let the rejection of a financial institution loan drive you to desperation. Analysis and ensure the lender could be trusted. Have they got a official web site? Are they in good standing with their very own traders? Have they got pending lawsuits over unhealthy loans?

2. Organize a gathering with the lender. That is additionally the time when you possibly can inquire whether or not they focus on a sort of funding property or if they’ve labored with tasks beforehand that mirror yours. Assess the time-frame specified for the loan and see if that is one thing you possibly can work with.

three. Put together a contract. Just remember to are providing an excellent take care of a sound monetary plan.

four. Inform the lender of your contract value. Most lenders are keen to fund 60 to 80 p.c of the property’s ARV. The remaining 30 to 40 p.c is up to you. You’ll improve your possibilities of getting permitted if you have already got this at hand.

5. Get the property appraised. The lender will both ship an inventory of their trusted appraisers or have their very own.

6. Put together extra paperwork wanted. Some lenders might require that you just current different documentation, like W-2s, financial institution statements, pay stubs, and so forth.

7. Watch for the lender’s approval. If it’s a deal that the lender finds passable, then they are going to inform you of the quantity and phrases for cost.

eight. Seek the advice of with a lawyer. Just remember to are legally protected, particularly after getting the lender’s counteroffer.

9. Shut the loan. Usually, this can be completed at a title firm or a lawyer’s workplace. The lender will then put the money into escrow on the title firm. The title firm would make sure that all paperwork is accomplished and that checks are issued to all events concerned. Further prices might embrace any closing charges and property insurance coverage.

Usually, lenders grant money to properties that won’t be available in the market for lengthy, and which have good promoting potential. Be sure your group budgets ample time to full renovations. There’s no sense in arising with unrealistic projections. This can’t solely set you again financially however probably burn a potential future relationship along with your hard money lender.

Alternate options To Hard Money Loans

Hard money loans usually are not the one type of financing with approval necessities that differ from a conventional house loan. Quite a few options might show you how to purchase your subsequent property:

· House Fairness Loans: If you’re making an attempt to finance your second property (or an funding property) take into account tapping into your current fairness with a house fairness loan. The approval necessities are largely based mostly on the worth of the property and the quantity of fairness you may have constructed up. These loans are additionally related to decrease rates of interest compared to hard money loans.

· FHA Loans: Federal Housing Administration (FHA) loans are an possibility for debtors who don’t meet the normal standards. FHA loans have decrease approval necessities and don’t take into account previous monetary challenges (particularly chapter) in the course of the utility course of. Learn our information to FHA loans to be taught extra.

· VA Loans: Loans by the Division of Veterans Affairs require no down cost and have a lot decrease approval requirements. These loans are solely offered to certified veterans, active-duty service members, and their spouses. The rates of interest and utility necessities are sometimes rather more favorable in the event you do qualify.

Abstract

Studying what is a hard money loan for real estate acquisitions has develop into commonplace within the housing sector. If for nothing else, a hard money loan provides traders an edge over these utilizing conventional financing strategies. Not solely ought to hard money borrowers find a way to safe capital quicker, however sellers will even favor their presents as a result of they’re made with money. That mentioned, if you’re trying to fund a deal, chances are you’ll not need to ignore hard money; it might be the one factor that will get you what you want.

Equal Housing Alternative. This isn’t a Good Religion Estimate and this isn’t a Assure to lend and shouldn’t be thought-about as such. Prices, charges, estimates and phrases can solely be decided after completion of a full utility. Precise funds will differ based mostly in your particular person scenario and present charges. APR for loans differ from 7.99 – 29.5% and relies on Credit score Rating, Down Cost, LTV, Revenue. Mortgage charges might change every day. To get extra correct and personalised outcomes, please name 623 582 4444 to discuss to one in every of our licensed mortgage consultants. Phrases and circumstances of all loan packages are topic to change with out discover. Stage four Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the unique use of the meant recipients, and will include privileged and confidential data. If you’re not an meant recipient, please notify the sender, delete the e-mail out of your laptop and don’t copy or disclose it to anybody else. Your receipt of this message shouldn’t be meant to waive any relevant privilege. Neither this e-mail nor any attachment’s set up a shopper relationship, represent an digital signature or present consent to contract electronically, until expressly so said by Dennis Dahlberg RI/CEO, Stage four Funding LLC, within the physique of this e-mail or an attachment. To the extent this message consists of any tax or authorized recommendation this message shouldn’t be meant or written by the sender to be used, and can’t be used, for authorized or tax functions or recommendation.

In regards to the Creator: Dennis has been working in the true property business in some capability for the final 40 years. He bought his first property when he was simply 18 years outdated. He rapidly realized in regards to the wonderful funding alternatives offered by trust deed investing and hard money loans. His want to assist others make money in actual property investing led him to focus on different funding for actual property traders who might have bother getting a conventional financial institution loan. Dennis is obsessed with different funding sources and sharing his information with others to assist make their desires come true. Dennis has been married to his fantastic spouse for 43 years. They’ve 2 lovely daughters 5 wonderful grandchildren. Dennis has been an Arizona resident for the previous 40 years.

Finding Money for your Fix and Flips.

August 27, 2022Arizona hard money Mortgagebigdaddydennis

Finding Money for your Fix and Flips. Supply of funding for Investments are Standard, Exhausting Money Lenders and OPM.

You probably have been round the true property investing enterprise earlier than, you might be in all probability conscious of the acronym O.P.M., which stands for different folks’s money. Leveraging the funds of others, for that matter, is without doubt one of the greatest methods to get a brand new actual property enterprise off the bottom. And to that time, there are two fundamental methods centered round utilizing O.P.M.: private and hard money. Every of them serves the identical fundamental operate however provide two fully alternative ways to go about funding a deal. With private money loan, you might be tapping into buddies, household and co-workers to type a monetary partnership on the offers you purchase. With private hard money, you might be utilizing funds from a person or partnership to earn a better return on their capital. Nearly all successful real estate investors have a number of choices for utilizing O.P.M. They might not use them on each deal, however in the proper scenario, it makes good sense. For as many individuals that swear by O.P.M., there are nonetheless a number of detractors. Let’s have a look at among the causes folks might not wish to use O.P.M., and why it could pay to disregard them:

“The charges and charges are too excessive!”

There are occasions in the true property enterprise when beggars can’t be choosers. If you happen to should not have entry to your personal capital or don’t wish to use conventional lender choices, funding is restricted. Your solely choices could also be hard and private money lenders. So simple as it sounds, making one thing on a deal is best than not making something. Elevated hard money options have pushed charges and charges down significantly. With private money lenders, you possibly can negotiate the most effective phrases and charges that you’re each snug with. Regardless of the phrases are, they offer you an entry into the enterprise. Getting access to capital means that you can make extra gives, and to finally have extra of these gives accepted. Making a smaller return on quite a few offers provides to your backside line and accelerates the velocity in which you’ll be able to accumulate your personal funds. If you’re utilizing these funds for rehabbing properties, the influence of the rate of interest will solely be felt for so long as you personal the property. Normally, you possibly can flip a rehab property round in as little as 30-90 days. O.P.M. charges and charges are increased than a conventional lender, however they need to be they’ve the funds and can dictate the phrases. Simply because the charges are increased than you might like, nonetheless, doesn’t imply it is best to ignore them.

“My native lender has charges round four%.”

There are lots of traders who’ve executed fairly nicely utilizing conventional lender choices. Nevertheless, there are important restrictions on how rapidly you possibly can shut, and even when you will get authorised. Your native lender does have a lot decrease rates of interest, however provided that you possibly can reap the benefits of them. For starters, you will want a down fee anyplace between 20-30%, coupled with robust credit score scores. Additionally, you will have to doc all of your earnings and be ready to attend anyplace from 30-45 days. Most sellers don’t wish to cope with a lender financed possibility. If there’s a money provide at a barely lower cost, most would relatively settle for the positive factor. Moreover, the trade norm permits for a most of 10 complete loans on your credit score report, which incorporates second mortgages. Even in the event you don’t thoughts the method, in the end you’ll hit ten and be compelled to seek out alternate options.

“I don’t know the place to discover a hard money lender.”

Lately, there was an inflow of hard money lenders in most markets. Final decade there have been solely a handful of those lenders. They have been thought of a last-ditch possibility that was used for foreclosures prevention or different emergencies. At the moment, there are extra hard money lenders than ever earlier than. Most of those firms have web sites and function very very like lenders, in that they’ve outlined charges, charges and phrases. The most important distinction is that they aren’t certain by particular pointers. Finding hard money lenders is as straightforward as asking your actual property agent, legal professional, or accountant. There are normally a handful at most actual property golf equipment and networking occasions. There may be an intuition to be intimidated by what you don’t know. With a lot competitors, you possibly can store round. Discuss to as many various hard money lenders as doable and discover the most effective match for you. What you will see is that they need your enterprise simply as a lot as you wish to work with them.

How does a Exhausting Money Lender Qualify You.

Most hard money lenders first have a look at the property you might be buying. They calculate a Mortgage to Worth Ratio and that’s the quantity of money the are prepared to lend on the property. It’s primarily based on the present worth, which is the worth you might be in all probability pay to buy the property. Future worth is good to see, however a hard money lender will base the loan quantity it on present worth.

When you develop a relationship with a lender, you’ll start to realize trust. As an alternative of regularly trying over your shoulder and giving updates, you might be given freedom to work. It can take some time to get so far, however when you do it would change your enterprise. You’ll be able to deal with discovering good offers and making gives that work for you. Utilizing O.P.M. might not be good, however it’s a completely good strategy to get began or take your enterprise to the following degree.

Equal Housing Alternative. This isn’t a Good Religion Estimate and this isn’t a Assure to lend and shouldn’t be thought of as such. Prices, charges, estimates and phrases can solely be decided after completion of a full software. Precise funds will fluctuate primarily based on your particular person scenario and present charges. APR for loans fluctuate from 7.99 – 29.5% and relies on Credit score Rating, Down Fee, LTV, Revenue. Mortgage charges might change each day. To get extra correct and customized outcomes, please name 623 582 4444 to speak to one in all our licensed mortgage consultants. Phrases and circumstances of all loan packages are topic to vary with out discover. Degree four Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the unique use of the meant recipients, and might comprise privileged and confidential info. If you’re not an meant recipient, please notify the sender, delete the e-mail from your pc and don’t copy or disclose it to anybody else. Your receipt of this message just isn’t meant to waive any relevant privilege. Neither this e-mail nor any attachment’s set up a shopper relationship, represent an digital signature or present consent to contract electronically, until expressly so said by Dennis Dahlberg RI/CEO, Degree four Funding LLC, within the physique of this e-mail or an attachment. To the extent this message contains any tax or authorized recommendation this message just isn’t meant or written by the sender for use, and can’t be used, for authorized or tax functions or recommendation.

Concerning the Writer: Dennis has been working in the true property trade in some capability for the final 40 years. He bought his first property when he was simply 18 years outdated. He rapidly discovered concerning the wonderful funding alternatives supplied by trust deed investing and hard money loans. His need to assist others make money in actual property investing led him to concentrate on various funding for actual property traders who might have hassle getting a conventional financial institution loan. Dennis is captivated with various funding sources and sharing his data with others to assist make their goals come true. Dennis has been married to his great spouse for 43 years. They’ve 2 stunning daughters 5 wonderful grandchildren. Dennis has been an Arizona resident for the previous 40 years.

The Best Real Estate Investor’s Guide To Financing Investments

August 26, 2022Arizona hard money Mortgagebigdaddydennis

Guide To Financing Investments A Real Estate Investor’s

Private hard money lenders are the most important people to establish a relationship within the real estate industry – at least if you want to run a sustainable business. Whether you are a new real estate investor or a seasoned veteran, chances are you will want to scale your business sooner rather than later. However, volume isn’t contingent on skill alone; you must bring something else to the table. There is one more piece to the puzzle that every successful real estate investor must find on their own: funding. That said, any hopes of completing more deals would depend on building relationships with those that have the necessary capital. There are exceptions of course, but private hard money lenders are a critical component to any real estate investor’s arsenal.

Private hard money lenders are integral to the growth of every new investor. They essentially provide the confidence and funding required to complete more deals. Of particular importance, however, is the liquidity private hard money lenders can offer investors and their businesses. Additional funds insulate people in our industry from risk and allow them to diversify their portfolios, at least more so than without private or hard money lenders getting involved.

Both sources are certainly worth their own considerations, but investors are advised to be able to differentiate between the two. To help you understand the differences between private money lenders and hard money lenders, my partners over at CT Homes and I have provided the following:

Breaking Down Private & Hard Money

Funding Deals With Private Money

In their simplest form, private money lenders are those people with the means and intent to invest capital. Consequently, anyone with a little extra money and an interest in what you do may be typecast into the role of a private money lender. It is up to you, however, to see to it that the convergence between your business and their interests takes place.

It is important to note that private money lenders are just as interested in working with you, as you are interested in working with them; it is really the quintessential symbiotic relationship. Both sides stand to gain something from every deal that is struck. In return for interest on their investment, private money lenders are entirely capable of bringing speed and efficiency to every transaction. Additionally, your leverage will increase exponentially when you offer to purchase a property with private-cash funds.

It is not uncommon for the funds from a private lender to go towards the purchase price of a property and subsequent renovation costs. The lender, however, will receive both the mortgage and a promissory note at the time of closing. Think of this as their insurance policy. The investor, on the other hand, will proceed with the renovation and put the funds to work. Following the completion of the rehab and its inevitable sale, the lender will be given their principle plus interest payment, and the borrower will collect what’s left.

As I mentioned before, private investors can benefit immensely from investing their own capital in the ventures of others. First and foremost, their money will work on their behalf, coming back with interest on top of the principal investment. Their investment is also protected, as they will receive the deed and promissory note as a form of collateral. In fact, private money lenders are awarded more safety than many other investment vehicles can boast.

At the cost of somewhere between six and twelve percent interest on the money borrowed, real estate investors will be given the opportunity to close on more deals in a shorter period. What you pay in interest comes back in the form of volume and efficiency. It is truly the definition of a win, win scenario for both parties involved.

Often, private money lenders tap into their own bank accounts to fund a deal. That said, you won’t have to wait an extended period and can move quickly on time sensitive deals. Consequently, traditional bank loans can offer nowhere near the efficiency of a private money loan.

Funding Deals With Hard Money

It’s no secret; savvy investors know that they need to complement their private money sources with a hard money lender. That said, I could argue that a hard money lender is the most important person you will work with on a project at any given time. Not unlike private money lenders, hard money provides short-term, high-rate loans, and will also typically cover the cost of purchase and rehab expenses. However, hard money lenders are typically more organized and semi-institutional. Perhaps even more importantly, however, they have been licensed to lend to investors like yourself.

Hard money funding is typically distributed in draws against the work being done. It is, therefore, relatively common for a hard money lender to set up a payment schedule for completed work.

It is also important to note that the term “hard money” does not imply a degree of difficulty in acquiring said funds; in fact, it’s quite the contrary. While the terms and criteria that accompany a hard money loan can be extensive, they are typically easier to overcome and more reliable than your standard institutional lender. If for nothing else, receiving hard money approval is easy in the face of a promising asset. You see; most hard money lenders make their decisions based off the asset in question. It isn’t until after the home has been deemed promising that they will even see if the borrower qualifies. In other words, the more promising the project, the more likely you are to receive a hard money loan.

While hard money is certainly more expensive to borrow, it is more reliable. That said, it is not subject to traditional credit guidelines (the same ones that protect banks). Instead, fees for borrowing hard money are often delineated in points (three to five to be exact). Points represent an additional upfront percentage fee based on the loan amount. It is important to note that these fees are not universal, and different hard money lenders will bring different terms to the table.

Subsequently, hard money lenders are trying to mitigate risk by increasing interest rates, thus charging investors more for their services. But that increased rate is more than worth it, considering investors will be able to move on deals much faster than they would be able to with a traditional loan.

It is rare that a hard money lender will fund an entire deal. It is more common that they will only fund a percentage of the purchase price or the after-repair value (ARV) – usually, around 70 percent. Also, hard money lenders tend to favor deals that take less time. Having said that, it is common for the duration of a hard money loan to top off at 12 months. If your deal looks to be lengthy, you may need to side with a private money lender, or someone willing to fund your project for an extended period.

In the end, chances are a hard money loan is your best bet to secure a deal with a great profit margin. While five points may sound difficult to overcome, sometimes the profit margins awarded to those who can close on a home quickly are well worth the investment.

Even with all of this in mind, investors are still advised to use caution when working with a hard money lender. I encourage you to have multiple exit strategies lined up in the event something unexpected happens.

Private hard money lenders have become a trusted source of funding for real estate investors on nearly every level, regardless of their experience. Both hard money and private money, for that matter, have become the backbone of any successful real estate entrepreneur. You simply can’t beat the speed and efficiency they have to offer. While they may come with a heftier price tag, I can assure you their positives greatly outweigh their negatives.

For More Information On Private & Hard Money Lending:

If you are interested in how to find private money investors that may be interested in teaming up with you on your next project. That way you won’t have any problems finding funding for your next deal. Are you ready to start working with private hard money lenders?

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Equal Housing Opportunity. This is not a Good Faith Estimate and this is not a Guarantee to lend and should not be considered as such. Costs, rates, estimates and terms can only be determined after completion of a full application. Actual payments will vary based on your individual situation and current rates. APR for loans vary from 7.99 – 29.5% and is based on Credit Score, Down Payment, LTV, Income. Mortgage rates could change daily. To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts. Terms and conditions of all loan programs are subject to change without notice. Level 4 Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the exclusive use of the intended recipients, and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the e-mail from your computer and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege. Neither this e-mail nor any attachment’s establish a client relationship, constitute an electronic signature or provide consent to contract electronically, unless expressly so stated by Dennis Dahlberg RI/CEO, Level 4 Funding LLC, in the body of this e-mail or an attachment. To the extent this message includes any tax or legal advice this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

A Real Estate Investor’s Guide To Financing Investments

August 25, 2022Arizona hard money Mortgagebigdaddydennis

A Real Estate Investor’s Guide To Financing Investments

Getting a short-term loan quickly can be difficult for real estate investors and wholesalers, especially if a great potential deal is coming up soon. However, you don’t necessarily need to go with a sketchy loan or a high interest offer. Instead, you might be able to rely on transactional funding to finance real estate deals and other investment opportunities. But before you put all your eggs in one basket, let’s take a closer look at this process and break down whether it’ll be a good choice for your investment goals.

What is Transactional Funding?

Also called same-day funding or flash funding, transactional funding is a unique financial strategy in which investors take out very short-term loans to make purchases, then pay back those loans much more quickly than normal, oftentimes within the same day or week. They pay the loans back with profits made on the purchase. Through this alternative form of financing, investors, especially real estate wholesalers, can buy and sell target properties quickly without risking their capital. Because of their extremely short-term nature, these agreements are best used for real estate deals where a buyer will close on a deal and resell the same property (in a separate deal) for a profit within a few days at most.

How Does Transactional Funding Work?

There are several key agents in a transactional funding process:

A lender that provides the money for the transactional funding
An intermediate agent, like a real estate investor or real estate wholesaler
An initial seller, who sells the target property to the real estate investor
An end buyer, who buys the target property from the real estate investor once the investor gets the cash they need from the lender

In most cases, capital is available from hard money or private money lenders. Additionally, transactional funding is usually only possible when the intermediate agent (such as the real estate wholesaler) has a well-documented and established end buyer in place for the second deal. That’s because the second or end buyer needs to be ready to buy a real estate wholesaler’s property immediately after the investor buys their target property from the initial seller. In other words, this type of financing only works when all the players in such a transaction are ready to go and trustworthy.

You can use transactional funding for any real estate purchase and sale so long as the closing agent is willing to facilitate all the transactions and the lender agrees to the terms. In many cases, the lender will need important details made available to them to trust in the transaction. Note that transaction funding was available on a “pass-through” basis before the 2008 recession. This allowed an investor to sign a contract to buy an excellent deal for real estate at a low price, then sign a secondary contract promising to sell the property at a higher price for a profit. Then the investor could use the end buyer’s money to fund the initial transaction to kick off the entire process. However, new regulations now require the purchase of the target property and the selling of the property to be two separate transactions.

How Much Does Transactional Funding Cost?

It depends on the comfort levels of different lenders. Some lenders may be more comfortable with certain deals than others. Even with this variability, real estate investors should assume that lenders will charge between 2% and 12% of the total loan amount. For example, if you need a $100,000 loan, you may need to pay between $2000 and $12,000 to facilitate the transactional funding process.

Transactional Funding in Wholesaling

Transactional funding is often useful when trading wholesale properties. Investors can get the cash they need to get a deal from a seller and quickly resell the property they purchased for a profit in a separate, transaction. This funding method gives investors more versatility and can replace the assigning contracts method of real estate trading, which is sometimes not permitted depending on your area. Because of its benefits and speed, transactional funding is of great use to real estate wholesalers.

What Do You Need To Be Eligible?

Although eligibility requirements may vary from lender to lender, there are generally 3 things you need to be considered eligible:

A motivated seller
Proof that you represent a business entity, such as an LLC
An end-buyer who is ready to close the deal immediately.

Note that the title company must be able to send a written confirmation stating that the money is in their escrow account.

Is A Proof Of Funds (POF) Letter Provided By The Lender?

Yes, the lender will provide a proof of funds (POF) letter. This letter proves to your seller that you have the funds available to purchase the property. Your deal is more likely to move forward once you have a POF, representing official backing from a legitimate financial institution.

Are There Any Upfront Fees?

Borrowers are expected to pay an origination fee, which is the equivalent of a few percentage points of the loan amount. When it comes to wholesaling, borrowers don’t have to pay a down payment on top of an origination fee. Wholesaling is an investing modality that allows you to access capital with minimal costs.

Is There A Processing Fee?

Yes. Borrowers must pay a processing fee that is separate from the origination fee. The fee pays for an attorney who will review the documents and certify that the property and title meet any legal criteria required for it to close. The closing fee varies from lender to lender but expect to pay at least $1,000.

Transactional Funding in House Flipping

Not surprisingly, transactional funding is an important tool used by house flippers and rehabbers. Most notably, it increases optionality and the ability to secure more deals. Thanks largely to the speed at which transactional funding may be deployed, investors may gain access to deals they would have otherwise lost out on to the competition. In securing and deploying money faster than others, investors can make offers sooner than those seeking traditional financing. Through this transactional method, house flippers can get the funds they need to rapidly purchase a wholesale deal, then flip the house and sell it to an end buyer without rehabbing it or spending lots of money fixing it up.

Example Of Transactional Funding

Let’s walk through an example of transactional funding to help solidify the concept. Let’s say that you’re a wholesaler working with a buyer who wants to move to Arizona from Illinois. You identify a property that needs minor upgrades and negotiate a selling price of $300,000.

You put the property under contract such that the property will be sold from your seller to your buyer for $350,000. You then secure a transactional loan and coordinate closing dates. You also arrange for a contractor and their workers to make the necessary upgrades within the next two days.

You put $10,000 of your potential profit into contractor and lender fees. After closing, you walk away with a profit of $40,000, all without having to put in a dime of your own funds.

Pros & Cons Of Transactional Funding

Transactional funding is a proven strategy that has found its way into investors’ playbooks. The optionality and speed of implementation transactional funding awards investors are invaluable. That said, the method in which transactional funding grants those who use it access to capital isn’t without downsides. Taking on debt to secure an investment does come with inherent risk. As a result, investors need to weigh the pros and cons associated with transactional funding and decide for themselves if it’s worth pursuing.

Pros of Transactional Funding

The pros of using transactional funding include, but are not limited to:

Loans Cover The Entire Cost Of The Property: There’s minimal risk for real estate investors and wholesalers, as the loans provide 100% of the loan amount to purchase a property.
Straightforward Processing: The paperwork is straightforward, and most deals don’t require your credit score or income to be reported for approval.
Relatively Easy Qualifications: All you need is a proof of funds letter from the end buyer for your target real estate property.
Speed Of Implementation: Funds can be acquired extremely quickly, sometimes in a matter of hours.
Optionality: Transactional funding allows you to take advantage of “flash in the pan” real estate deals that don’t come around very often.
Accelerated Process: Most transactional lenders don’t require insurance, appraisals, or full title reports, which accelerates the process and may increase your profit margins.

Cons of Transactional Funding

The cons of using transactional funding include, but are not limited to:

Closing Costs: The funds from a transactional funding deal come with closing costs. Fees will usually be taken out of your profits at both deals’ closes.
Short-Term Loan Duration: Transactional funders usually offer short-term loans, so you must be prepared to settle with your end buyer very quickly after taking out your loan.
Payments Due Within Weeks: Transactional loans are often due within two weeks of being taken out or may even be due within 48 hours.
Deal Dependent On End Buyers: Any end buyers must qualify for financing for the deal to go through.

How to Qualify for Transactional Funding

While transactional funding can be effective, you’ll need to qualify for these deals to take advantage of them. Generally, you’ll need:

An end buyer contract that proves the end buyer’s funds are present to convince the transactional lenders that the deal can go through ASAP
Possibly a credit report and background checks for the borrower
Some due diligence for the property, like a desktop valuation or examining pictures from the interior and exterior of the property
Many lenders may also require a letter, which evaluates the borrower based on the “5 Cs of Credit”

Alternatives to Transactional Funding

Given the risk inherent with transactional funding, some real estate investors may wish to consider alternatives, including:

Hard Money Loans: Offered by private lenders, hard money loans offer short-term capital, which is backed by the subject property. Hard money loans typically come with lower interest rates than their private money counterparts, but approvals can be harder to come by for some investors.
Private Money Loans: Private money loans are not associated with an institution but rather private investors with access to capital of their own. Without an attachment to an institution, private money lenders are easier to qualify for and faster to act. However, private money lenders will ask for higher interest rates, upwards of 12% to 15%.
HELOCs: Otherwise known as home equity lines of credit, HELOCs allow investors to borrow against the equity in their own homes to finance subsequent real estate purchases.
Joint-Venture Capital: A joint venture, as its name suggests, is a convergence of two or more parties that seek to invest in a single property for profit. In addition to sharing risks, joint ventures will also usually share the acquisition costs.

Summary

All in all, transactional funding can be an excellent tool in your real estate investing repertoire, particularly if you stumble upon a great deal you want to jump on ASAP. But keep in mind that you will need a guarantee of an end buyer’s funds, plus their willingness to pay, to secure transactional funds from a suitable lender. Furthermore, you may be on the hook for paying back the loan faster than you anticipate, so make sure to close both transactions in a deal quickly.

6 Sources to Raise Capital For Real Estate Investing

August 23, 2022Arizona hard money Mortgagebigdaddydennis

6 Sources to Raise Capital For Real Estate Investing

Raising capital for real estate can be a challenge for many new investors, but it is necessary for anyone looking to succeed in the industry. The key to learning how to raise capital for real estate is to focus on identifying what today’s lenders covet the most (and give it to them). If you succeed, there’s no reason you shouldn’t be able to raise the real estate investment capital you need for your next deal.

Other People’s Money (OPM) is what makes real estate investing possible for a considerable percentage of aspiring investors. Even the most successful real estate professionals and legendary investors almost exclusively use OPM to reduce liability and maximize returns. Daniel Chan from Marketplace Fairness suggests “It is important for investors to know how to raise capital in the real estate world because it gives them more options and opportunities to invest in the market. Even if an investor has their own money, knowing how to raise capital can help them get better deals and make more money in the long run”. As you can see, raising capital is critical for investors of every level.

However, both novice and seasoned real estate investors struggle to connect with potential private investors and close the deal. (Or even understanding how capital works with an alternative strategy such as tax lien investing.)

This is a shame, considering there is more real estate investment capital out there than ever before. Remember, private money lenders want to work with you just as much as you want to work with them. Private lending has never been so attractive or widely accepted, and the benefits for you and your lender are endless.

Raising real estate investment capital is about more than a simple message or conducting a presentation that resonates. It must be more than a pretty website, thousands of inorganic Facebook friends, glossy folders, and a nice suit.

What Is Investment Capital?

Investment capital is the money used to fund a given investment deal. This can include the costs of acquiring a property, initial renovations, and upfront costs. There are generally two types of investment capital: debt and equity. Debt refers to investment capital from hard money lenders, such as banks, and often requires interest payments. An advantage of using debt investment capital is that hard money lenders will not have a say in the company. However, many investors may find it difficult to secure capital with hard money lenders. This is where equity (and OPM come in).

Equity refers to money secured by selling ownership of a property or business. Private money lenders may invest in a company if they see the investment as potentially profitable. Using equity as a form of investment capital has different pros and cons to utilizing debts, so investors must consider both options. For entrepreneurs ready to put the work in, raising private money can offer the chance to pursue various investment opportunities and expand their portfolios.

Top Sources Of Private Money

Private money can be found all over the real estate industry, but it may not be easy to identify if you don’t know what to look for. Here are some of the top sources of private money to be aware of:

Business Partner: A common business arrangement is for one partner to manage the heavy lifting in terms of workload, while the other supplies the capital (called a silent partner)
Peer-to-Peer Lending: P2P lending is made possible through online lending platforms that partner you with other investors.
Crowdfunding: Real estate crowdfunding has become increasingly common over the last several years, and again allows you to utilize an online lending platform to finance investment deals.
Family, Friends, or Colleagues: Many private money deals are funded by sources close to the investor, such as a family member with extra capital.
Hard Money Lenders: It is also possible to finance a deal with an investor you haven’t worked with before. Ask around your network for trusted lenders to learn more.

What Are Money Partners?

Money partners are anyone you decide to work with to fund a given deal. When it comes to raising capital for real estate, money partners can be beneficial because they can enable investors without significant capital to get started. Money partners can finance a deal, provide advice, and even share a given investment risk depending on the arrangement at hand. Because of this, money partners are often highly sought after in the investment world. However, it is important to note that partnering with other investors is mutually beneficial. Business partners stand to benefit from the success of a good deal just as much as you do, something that is important to keep in mind as you get ready to approach potential lenders.

Money partners exist throughout the real estate industry, though it is important to approach each potential investment carefully. It is not uncommon for even the most seasoned real estate investors to fail to close a deal with private money lenders or money partners. To ensure this does not happen to you, research potential investors you are trying to work with and put in the time and effort to ensure you are prepared every step of the way. If you are interested in learning more about how to find private money lenders or money partners, read this guide.

Uses For Private Money

Those who want to raise capital for real estate most commonly use private money for refinancing a property or buying a new property. For example, suppose you purchased a property using a conventional mortgage but want to want to negotiate for a shorter repayment plan or lower interest rate. In that case, you can use a private money lender to help you refinance.

If you are interested in condos, single-family homes, multifamily homes, or apartments, private money can be used to purchase your new investment property. To get a private money loan for a new investment property, you will have to pitch the potential profitability of the property with reliable numbers and predictions. Raising capital for real estate using private money is typically easier for experienced investors as they have records of successful deals they have made.

How To Raise Capital For Real Estate

Private money lenders will often have their own set of rules and guidelines. While many will exercise similar practices, their borrowers’ criteria are different. I maintain, however, that there are several universal things private money lenders look for.

If borrowers can identify what it is their money partners want, it’s more likely that they will receive the loan. You see, lenders are in the business of making money, too. There are 6 P’s that you can remember when it comes to private money lenders. If you can give them the things I outline below, you could find yourself with the money needed to buy your next deal:

Protect their capital
Promise realistic returns
Prove your potential
Procure a great deal
Provide your track record
Promote relationship building

1. Protect Their Capital

The primary concern investors have is protecting what they’ve loaned out. If they lose that, they won’t be able to profit, which is the whole point. That’s why so many money partners have recently invested in low-yielding real estate-related products and ventures. When contemplating this factor, most look for collateral and how easy it will be to get their money back in the worst-case scenario. So be ready to answer these questions and have a plan B in your back pocket. It should go without saying, but the best way to work with a private money lender and raise the real estate investment capital you need for your next deal is to convince them that it’s worth their time.

2. Promise Realistic Returns

Where most real estate investors go wrong when trying to raise capital is promising huge returns. If you sound overconfident, your presentation will automatically appear to be a “high-risk investment” or “scam,” which is certainly not the message you want to send. You will have to be above average market rates – of course – but don’t project too high. The last thing you want to do is overpromise and under-deliver. Even if you think your goals are possible to achieve, start by underestimating and then deliver more later, which will create a sense of loyalty and reliability between you and your first line of money partners. If you tell them they will receive an ROI of 8 percent, and they actually make 14 percent after all is said and done, you can bet they’ll put you at the front of the line in their contact database and beg you to take their money for your next deal.

3. Prove Your Potential

On the other hand, you need to make your investment sound appealing. Savvy investors with bigger pockets and heavy-weight venture capital firms are, of course, intrigued by the promise of big wins. So, while keeping projections conservative, don’t be afraid to hint at the full upside potential – those big numbers you are hoping you’ll really hit.

4. Procure A Great Deal

Everyone wants a “deal.” There are two reasons for this. The first is that it is simply human nature. If someone thinks they are getting a good deal on a product, it automatically gives the impression of value. The second is that these individuals and money managers want to look smart and feel like they are making a sound investment. They all have someone they need to impress. It could be their boss, co-worker, spouse, competitor, or even themselves. Regardless of who, your potential money partner will want to be able to boast about how intelligent they were to discover this high-yielding or trendy investment before everyone else. Help them out.

5. Provide Your Track Record

Of course, most investors expect to see a proven track record. They want to know that you can deliver on your plans. If you don’t have direct experience in real estate investing, what other relevant experience do you have or who else can you partner with? Have your portfolio ready to go with your successes on top. You’ve got to have the numbers to prove yourself.

6. Promote Relationship Building

Surprisingly – or perhaps not so surprising – having a personal relationship between both investing parties trumps the rest of the qualifications. So how can you build more authentic relationships or find like-minded individuals – whom you might already know – that might want to work with you? This is one of the most important habits to acquire as a real estate investor. Try attending a local networking event to get your face out there. Building and maintaining relationships is necessary if you want to discover a potential money partner and achieve success.

5 Tips For Raising Private Real Estate Capital

The best advice for raising private capital in real estate will vary depending on who you ask. This is because over time, investors find the way of doing things that work best for their real estate businesses. However, this is not helpful to newbies. What I can say is that it takes time to develop a surefire system for raising private capital. In the meantime, —here are some tips to help you get started:

Use Your Own Money First: Before you start fundraising a new project, assess how much capital of your own you can rely on. Not only will this help you frame the budget for the project, but it will also lower the amount of cash you are paying interest on should you find a private lender. To increase your personal capital, consider redoing your monthly budget and reducing expenses for a while; you may even be eligible for a home equity loan.
Attention To Detail: The details included in your portfolio are going to make or break your pitch to private money lenders. Ensure you have an accurate purchase price, property value, rehab cost, and rental value wherever it applies to you. If this is your first investment deal, make sure the figures and estimates in your deal analyzer are as accurate as possible. Strong attention to detail could mean the difference between choosing a potential investment and securing enough financing.
Showcase Your Success: When you complete a successful real estate deal, don’t be modest! Share the good news with your network, website, and social media following. Investors can and should showcase their successes (or wins) as they come along. This can help establish your credibility over time in the real estate industry when done right.
Build Relationships: Networking is not as simple as exchanging business cards, and you shouldn’t want it to be. If you want to have a successful career in real estate, building relationships across the industry is critical. Keep up with your connections, celebrate their successes, and check-in from time to time. Building genuine relationships will help your career more than you can imagine.
Educate Others: Sometimes, you may encounter potential lenders who are mostly unaware of the intricacies of a real estate deal or the dynamics of private lending. That’s okay; it could be the perfect opportunity to educate someone else about what you do. As you build relationships with other real estate professionals, have conversations about lending and acquiring deals, share the resources you find helpful, and put people in contact with one another when fitting. This will help you build relationships (as I mentioned above) and potentially introduce investors to a mutually beneficial real estate aspect.

Raising Capital For Residential Vs. Commercial

When comparing residential and commercial deals, financing is going to look very different. Residential properties almost always cost less than commercial properties, and investors need to secure less funding overall. It can take a shorter amount of time to raise the capital necessary for a residential deal. Commercial deals, on the other hand, require much more capital but come with higher profit margins. For this reason, some investors may find it easier to secure commercial properties. Overall, it comes down to your network and preferred lenders. Raising capital for residential vs commercial properties requires an understanding of the different income projections.

Continue Learning How To Raise Capital For Real Estate

Raising capital for real estate has become one of the most discussed topics associated with real estate investing. If for nothing else, it’s the one concept anyone could stand to improve on, there’s never too much funding. As a result, there are volumes written on the subject of raising capital for real estate, and perhaps even more knowledgeable people talking about their own strategies just about anywhere someone is willing to listen. Truth be told, it’s not hard to find someone willing to offer their own opinion on raising capital for real estate investments; the hard part comes in distinguishing between those who are truly knowledgeable and those who are, for lack of a better word, ignorant.

It should go without saying, but incorrect information can be damaging to one’s career. Therefore, it’s important to gather information from trusted sources, not the least of which include:

Books: To this day, books represent one of the greatest ways to filter through the volumes of information made available to investors. However, the number of books one can find on raising capital for real estate can be staggering. Instead of sifting through everything, and risking learning from someone that may not know what they are talking about, save yourself some time and consult “The Real Estate Wholesaling Bible,” by my friend and business partner Than Merrill. As the name suggests, aspiring investors will learn how to wholesale real estate, but a large portion of the book deals with raising capital and funding. As a compliment, my own book, “The Real Estate Rehab Investing Bible,” will teach readers the importance of raising capital for real estate and the best ways of going about doing so.
Podcasts: Relatively new to their written counterparts, podcasts are not to be underestimated. Oftentimes free, these downloadable audio files are filled with information from today’s top minds in the real estate industry. Get Wealthfit, for example, is a compilation of podcasts by investors who have been exactly where many aspiring investors hope to be one day. Get Wealthfit covers everything from money management to marketing strategies and everything in between.
Blogs: Not unlike books, blogs offer knowledgeable individuals the ability to share their knowledge with the masses. Only, instead of releasing once every year or so, writers can publish blog content daily.

Summary

Raising capital for real estate doesn’t need to be nearly as hard as many make it out to be. For those learning how to raise capital for real estate, remember, working with money partners is as simple as doing two things: learning what it is they want the most and giving it to them. The investors can identify what today’s lenders are looking for that stand the best chance at getting the money they need for their next deal. That said, pay special considerations to the steps above, as they offer insight into what the majority of today’s lenders look for in a borrower. Only when you can give a lender what they want will your chances of receiving real estate investment capital increase dramatically.

6 Sources to Raise Capital

August 23, 2022Arizona hard money Mortgagebigdaddydennis

What Is Investment Capital?

Top Sources Of Private Money

Business Partner: A common business arrangement is for one partner to manage the heavy lifting in terms of workload, while the other supplies the capital (called a silent partner)
Peer-to-Peer Lending: P2P lending is made possible through online lending platforms that partner you with other investors.
Crowdfunding: Real estate crowdfunding has become increasingly common over the last several years, and again allows you to utilize an online lending platform to finance investment deals.
Family, Friends, or Colleagues: Many private money deals are funded by sources close to the investor, such as a family member with extra capital.
Hard Money Lenders: It is also possible to finance a deal with an investor you haven’t worked with before. Ask around your network for trusted lenders to learn more.

What Are Money Partners?

Uses For Private Money

How To Raise Capital For Real Estate

Protect their capital
Promise realistic returns
Prove your potential
Procure a great deal
Provide your track record
Promote relationship building

1. Protect Their Capital

2. Promise Realistic Returns

3. Prove Your Potential

4. Procure A Great Deal

5. Provide Your Track Record

6. Promote Relationship Building

5 Tips For Raising Private Real Estate Capital

Use Your Own Money First: Before you start fundraising a new project, assess how much capital of your own you can rely on. Not only will this help you frame the budget for the project, but it will also lower the amount of cash you are paying interest on should you find a private lender. To increase your personal capital, consider redoing your monthly budget and reducing expenses for a while; you may even be eligible for a home equity loan.
Attention To Detail: The details included in your portfolio are going to make or break your pitch to private money lenders. Ensure you have an accurate purchase price, property value, rehab cost, and rental value wherever it applies to you. If this is your first investment deal, make sure the figures and estimates in your deal analyzer are as accurate as possible. Strong attention to detail could mean the difference between choosing a potential investment and securing enough financing.
Showcase Your Success: When you complete a successful real estate deal, don’t be modest! Share the good news with your network, website, and social media following. Investors can and should showcase their successes (or wins) as they come along. This can help establish your credibility over time in the real estate industry when done right.
Build Relationships: Networking is not as simple as exchanging business cards, and you shouldn’t want it to be. If you want to have a successful career in real estate, building relationships across the industry is critical. Keep up with your connections, celebrate their successes, and check-in from time to time. Building genuine relationships will help your career more than you can imagine.
Educate Others: Sometimes, you may encounter potential lenders who are mostly unaware of the intricacies of a real estate deal or the dynamics of private lending. That’s okay; it could be the perfect opportunity to educate someone else about what you do. As you build relationships with other real estate professionals, have conversations about lending and acquiring deals, share the resources you find helpful, and put people in contact with one another when fitting. This will help you build relationships (as I mentioned above) and potentially introduce investors to a mutually beneficial real estate aspect.

Raising Capital For Residential Vs. Commercial

Continue Learning How To Raise Capital For Real Estate

It should go without saying, but incorrect information can be damaging to one’s career. Therefore, it’s important to gather information from trusted sources, not the least of which include:

Books: To this day, books represent one of the greatest ways to filter through the volumes of information made available to investors. However, the number of books one can find on raising capital for real estate can be staggering. Instead of sifting through everything, and risking learning from someone that may not know what they are talking about, save yourself some time and consult “The Real Estate Wholesaling Bible,” by my friend and business partner Than Merrill. As the name suggests, aspiring investors will learn how to wholesale real estate, but a large portion of the book deals with raising capital and funding. As a compliment, my own book, “The Real Estate Rehab Investing Bible,” will teach readers the importance of raising capital for real estate and the best ways of going about doing so.
Podcasts: Relatively new to their written counterparts, podcasts are not to be underestimated. Oftentimes free, these downloadable audio files are filled with information from today’s top minds in the real estate industry. Get Wealthfit, for example, is a compilation of podcasts by investors who have been exactly where many aspiring investors hope to be one day. Get Wealthfit covers everything from money management to marketing strategies and everything in between.
Blogs: Not unlike books, blogs offer knowledgeable individuals the ability to share their knowledge with the masses. Only, instead of releasing once every year or so, writers can publish blog content daily.

Summary

Different Sources of Capital

August 23, 2022Arizona hard money Mortgagebigdaddydennis

What Is Investment Capital?

Top Sources Of Private Money

Business Partner: A common business arrangement is for one partner to manage the heavy lifting in terms of workload, while the other supplies the capital (called a silent partner)
Peer-to-Peer Lending: P2P lending is made possible through online lending platforms that partner you with other investors.
Crowdfunding: Real estate crowdfunding has become increasingly common over the last several years, and again allows you to utilize an online lending platform to finance investment deals.
Family, Friends, or Colleagues: Many private money deals are funded by sources close to the investor, such as a family member with extra capital.
Hard Money Lenders: It is also possible to finance a deal with an investor you haven’t worked with before. Ask around your network for trusted lenders to learn more.

What Are Money Partners?

Uses For Private Money

How To Raise Capital For Real Estate

Protect their capital
Promise realistic returns
Prove your potential
Procure a great deal
Provide your track record
Promote relationship building

1. Protect Their Capital

2. Promise Realistic Returns

3. Prove Your Potential

4. Procure A Great Deal

5. Provide Your Track Record

6. Promote Relationship Building

5 Tips For Raising Private Real Estate Capital

Use Your Own Money First: Before you start fundraising a new project, assess how much capital of your own you can rely on. Not only will this help you frame the budget for the project, but it will also lower the amount of cash you are paying interest on should you find a private lender. To increase your personal capital, consider redoing your monthly budget and reducing expenses for a while; you may even be eligible for a home equity loan.
Attention To Detail: The details included in your portfolio are going to make or break your pitch to private money lenders. Ensure you have an accurate purchase price, property value, rehab cost, and rental value wherever it applies to you. If this is your first investment deal, make sure the figures and estimates in your deal analyzer are as accurate as possible. Strong attention to detail could mean the difference between choosing a potential investment and securing enough financing.
Showcase Your Success: When you complete a successful real estate deal, don’t be modest! Share the good news with your network, website, and social media following. Investors can and should showcase their successes (or wins) as they come along. This can help establish your credibility over time in the real estate industry when done right.
Build Relationships: Networking is not as simple as exchanging business cards, and you shouldn’t want it to be. If you want to have a successful career in real estate, building relationships across the industry is critical. Keep up with your connections, celebrate their successes, and check-in from time to time. Building genuine relationships will help your career more than you can imagine.
Educate Others: Sometimes, you may encounter potential lenders who are mostly unaware of the intricacies of a real estate deal or the dynamics of private lending. That’s okay; it could be the perfect opportunity to educate someone else about what you do. As you build relationships with other real estate professionals, have conversations about lending and acquiring deals, share the resources you find helpful, and put people in contact with one another when fitting. This will help you build relationships (as I mentioned above) and potentially introduce investors to a mutually beneficial real estate aspect.

Raising Capital For Residential Vs. Commercial

Continue Learning How To Raise Capital For Real Estate

It should go without saying, but incorrect information can be damaging to one’s career. Therefore, it’s important to gather information from trusted sources, not the least of which include:

Books: To this day, books represent one of the greatest ways to filter through the volumes of information made available to investors. However, the number of books one can find on raising capital for real estate can be staggering. Instead of sifting through everything, and risking learning from someone that may not know what they are talking about, save yourself some time and consult “The Real Estate Wholesaling Bible,” by my friend and business partner Than Merrill. As the name suggests, aspiring investors will learn how to wholesale real estate, but a large portion of the book deals with raising capital and funding. As a compliment, my own book, “The Real Estate Rehab Investing Bible,” will teach readers the importance of raising capital for real estate and the best ways of going about doing so.
Podcasts: Relatively new to their written counterparts, podcasts are not to be underestimated. Oftentimes free, these downloadable audio files are filled with information from today’s top minds in the real estate industry. Get Wealthfit, for example, is a compilation of podcasts by investors who have been exactly where many aspiring investors hope to be one day. Get Wealthfit covers everything from money management to marketing strategies and everything in between.
Blogs: Not unlike books, blogs offer knowledgeable individuals the ability to share their knowledge with the masses. Only, instead of releasing once every year or so, writers can publish blog content daily.

Summary