You have 3 votes, please tell me how you finance your investments?
What types of loans do you use the most?
forget conventional financing the banks do not deserve our business.
Private financing and seller financing are the only options left unless you have a lot of money to start with for down payments, or just buy one property every other year.
redhawk
I am just getting back into investing - 10 years ago I used conventional, and owner financing, but after bankruptcy and bad credit, I would only qualify for hard money.
Private funds and seller financing is the way to go right now.
Here’s the chicken-or-egg-first, or “Catch-22” giving me migraines these days: Many great SFR deals, but private lenders and hard money lenders want me to have them under contract before they will look at the deal. I don’t want to put property under contract unless I’m sure I can get a loan. Frustrating. :banghead Anybody got experience with this? Thanks.
Make sure your contract allows for a 30 day window to acquire financing. This is your out or OH $H%^ measure in the event you cannot secure the loan from the hard-money lender. I would love to be in your position personally - my frustration is having hard-money lenders work with me and I have decent credit and investor cash to work with. :bs
Why don’t you want to put them under contract unless you’re sure you can get a loan? Just get them under contract and have the hard money lenders look at them. Make sure you do your due diligence on the lenders though otherwise you will be wasting your time. Ask them the type of property they are looking to lend on, what kind of LTV they are looking for, if you need to put any money down, geographic location, who does the appraisal etc. The more questions you ask, the more likely you will be able to choose the right lender.
We do 100% of our deals in today’s market through private lenders or owner financing. Often even when we have the owner financing we’re using a private lender to cover holding costs, marketing costs, and rehab needs.
We’re getting private lenders for as little as 4% on a 1st mortgage with 8% being more typical and 10% on a 2nd mortgage. There is A LOT of money sitting in low paying bank cd’s and money markets right now while the investors wait for the bottom of the stock market.
I can’t even imagine trying to jump through all the hoops the banks want you to jump through today. We don’t have time for that - the deal will be gone.
cortjones
Hey Cortjones,
Who do you think is offering the best programs today on methods of seeking private funding for deals.
I know of Alan Cowgill, and think he’s probably good. Wendy Patton appears to have some good programs.
Have you heard of some particularly good presenters with excellent programs for, 1) using creative financing for your RE purchases, and 2) how to build a business which is capitalized by private funders.
Another great teacher is Gene Trowbridge, and he’s presenting a program in Nashville in about a month, which I’m thinking I’d like to attend, yet I’d like to consider bringing a speaker to our REIA group even if I do attend Gene’s 3-day workshop.
Oh, and from YOUR signature, maybe you’re a source? :rolleyes