If my first 2-3 house rehabs go well, how can I use other people’s money to exponentially grow what I’m doing? I have enough for one house now, using a hard money lender. If that goes well, I will have enough for one more. I could probably do 4/year at most this way.
If I could attract $1,000,000 of investment money, I could do a lot more, assuming I could manage them all.
How should I structure the loans that I’m getting from the investors?
Currently, I take out 2 year loans at 12.9% plus the extra fees that go along with using hard money lenders.
Let’s say I offered to borrow money as 30/5 or even 30/1 loans.
If I can’t resell a house in one year, something’s wrong with me or the economy crashed.
I really need to join an economics forum so I can predict when the economy will crash. I’m smart enough to figure it out.
The question becomes: where do I find these lenders. Wasn’t I supposed to go to the courthouse and search records for “something” and filter out the major lending institutions and what’s left are my private lenders.
No investor is going to do a fully amortized loan for 2 years! If your flipping property your going to be lucky to get a 6 to 12 month interest only loan at 9% or 10% plus 3 to 5 points. Investors want their money back ASAP to reinvest.
A short term rehab loan will probable be 6 months with possible extension terms!