Need Help Identifying my Financing Options

Financing, Hard Money Lenders, Private Money
1

Hello I’m a young/new real estate investor looking for a sound investing strategy and how to max out my financing capacity.

Here are a few things about me and my RE investing strategy: I’m a buy, hold, rent out type of investor. The market here allows me to buy rental houses at 50% LTV or lower and fix up a little bit then rent out for a good positive cashflow. I focus on lower income houses and will pay it off in 7-10 years.

My current plan is to buy these house with Hard Money and find banks to refinance later. Hard money is quite expensive but it can work if i find great deals. Now from my understanding of “unsecured line of credit”, it’s much cheaper than Hard Money.

I’m in the process of forming an LLC and with a personal credit of 790+ and some liquid assets, how do i take advantage of my good credit to establish a sizable line of credit to fund my future deals?

Thank You

-Nathan

2

Nathan,

You might try wholesaling a couple of properties to put some money in your pocket. That is something you can start doing right away. Are you looking to invest full-time or do you have a full time job and will be investing as a hobby? If you have a full time job I would advise you to hang on to it as long as you can this way if you hit some bumps and bruises along the way you will have back-up income coming in to get you through any rough patches. I would also suggest sitting down with a good mortgage planner ans/or financial planner to make sure that you have all your ducks in a row before you start. You always want to make sure that you have an exit strategy in place.