It seems that everyone has forgotton about using partnerships as a means of funding a deal. A lot of the posters are asking for ways to finance deals when they have bad credit and thus will not qualify for a conventional loan. The answer more times than not is to either repair your credit or try to find a hard money lender. I am all for repairing one’s credit but that takes years and still doesn’t get deals done. As for HML they are nothing more than loan sharks’ charging huge interest and still relyinbg on credit scores to fund a loan.
What my wife and I have done with great success is to use partnerships to fund our flips. We simply have a pool of individuals that will fund the purchase and rehab of our deals in return for half of the profits. We present the pros of the deal and the step by step game plan to get the property rehabed and sold to the partner and if he/she agrees with us then we have our financing. To protect the partner we form an LLC and in the articles of organization stipulate the terms of the deal.
This has worked every time for us and wehave no qualms about doing it again in the future.
I hope I helped offer another form of nonconventional financing to the readers here.