How can I get funding for 75k to 100k for a start up business or a personal line of credit?
Well, put it this way… If you were a lender or bank, what would you need from someone who wants to borrow 75K to 100K?
If Fredro were a lender or a bank, he would already know how to get funding. So now let’s put it in a more USEFUL way…if you already have a relationship with a bank, make an appointment with their business banking manager. They will break down everything that they need in order to help you out. If you don’t have a relationship with one, you might want to look into your community bank. They are often more flexible and willing to work with small businesses.
For a more general discussion, you should look at http://www.sba.gov/starting_business/startup/guide.html and http://www.sba.gov/starting_business/financing/basics.html.
If you own a home, you are confident in your strategy and your circumstances permit, maybe just get a HELOC? I say you need to be confident in the strategy because after all this would mean putting your residence in direct jeopardy.
There are also some quicker, less conventional and sometime easier ways to get funding, but they generally bear higher interest rates and fees that are not associated with bank loans.
HTH…d
In summary, you’ve answered my comments in detail; however, if you really want to know how to get any amount of capital to buy real estate is NOT your local banker or lender!
It’s true that a small banks like to work with a small businesses but does that mean they will stick their neck out to someone who they just met? Unless you have proven business track record or someone with assets co-sign for you, it will be hard to get a loan to purchase rather, small line of credit for your business with high interest rate.
HELOC … I don’t think so… the very reason as to why there are so many foreclosures it’s because of people were “confident in the strategy” and failed. PLEASE, I am not trying to be negative but realistic! Too many people have been suckered into investing real estate with very little information. Most people would think that, obtaining capital to purchase yet, that is the easiest thing in the process.
Never use lenders when there are plent of investors specialize in specific areas in real estate investing. Find your niche in real estate and let other people do what they do and pay them or share the pie. I’ve put together “specialized team” that, find the deal, finance the deal, fix the deal, maket the deal, close the deal. There are more to it but idea is that, I want to sleep at night without headache and getting only golden egg rather than, the goose.
One more thing, keep your ear to Fed annoucement next week after FOMC meeting about interest rate. This will change the market again. Position yourself to work with these coming changes.
He didn’t say it was to directly buy real estate. He said it was for start-up business funding. Real estate could very well be a single offering, part of a bigger business picture for some, and while there are investors ready to jump on a purchase they are not terribly anxious to seed the overall business itself.
I totally understand that you are being realistic, but while not without risk, the suggestions I offered are still means for him to get business funding. I totally disagree about not using a community bank because I’ve seen enough businesses get a good start because of their local banker when the First Bank of Whositz barely wanted to open a business checking account for them.
Maybe he meant he wanted funding strictly to purchase real estate, in which case it is a totally different ballgame and you are 100% right, but my attempt was to answer the question as it was asked, not to throw out a bunch of assumptions.
You got me there 
BUT why is he posting a financial need in REIClub website? The purpose of this website is to network with other investors and financial entities related to real estate. Talk to anyone first time getting into real estate investing … including myself. We all want to know where the heck are you going to get hundreds of thousand dollars to buy real estate? Banks! that is what we all been trained… or least we think of first.
No risk, no reward… but smart one’s don’t take risks. OPM - other people’s money. If I hold a purchase agreement to a property that has a lease purchaser with $10K down on a 200K property and lender who pre-qualified them to refinance within 12 month @ 250K … you as a investor put up the money or credit to buy the property? Again, there are other team members that make sure this works like a domino affect to assure their piece of the pie. Put an ad in the newpaper and when the investors call, explain to them about this simple project and you will have enough money to make 400K a year without your own money or risk. Sharing brings synergy between all players to make sure the project goes through…
No assumptions… I am sure he was looking for real estate funding …
Good luck to all
Yes I am looking for realestate funding. Sorry I didn’t make that clear. I have a venue where I can purchase properties at 50 to 65 ltv but I need 20% of purchase price to have my name added to the title. I am a broker so I can cash out refi myself right away to 80 ltv paying off the loan and puting 15 to 30% into my pocket. Than fire sale the house at 80 ltv than on the next property. I think the plan is pretty flawless as even if I can’t sell for six months to a year I still won’t use all my reserves and it wasn’t my money anyway.
Where are you located? Or should I say, where are these properties located that you speak of ?
You are using percentages but not in dollars … what are the price ranges?
I can dig it, Shamatso (did I say ‘dig it’? man I am getting old). I did wonder why he would post a non REI question here too, but the Amelia-Bedelia in me took the question at face value (wow I’m not getting old, I AM OLD) :-[.
Also, I’ve seen stranger posts right here on REIClub.com.
Anyway this is shaping up to be a very interesting little discussion. I look forward to Fredo’s answers so that I can see your suggestions.
Yes I am looking for realestate funding. Sorry I didn’t make that clear. I have a venue where I can purchase properties at 50 to 65 ltv but I need 20% of purchase price to have my name added to the title. I am a broker so I can cash out refi myself right away to 80 ltv paying off the loan and puting 15 to 30% into my pocket. Than fire sale the house at 80 ltv than on the next property. I think the plan is pretty flawless as even if I can’t sell for six months to a year I still won’t use all my reserves and it wasn’t my money anyway.
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