130 Back To Basics – How To Find Funding For An Investment Property

by | Jun 1, 2018 | Podcast | 0 comments

Back To Basics - How To Find Funding For An Investment Property

Back To Basics – How To Find Funding For An Investment Property

Bankability – What’s that all about?

  • Use a broker NOT a banker
  • Repair your credit by first finding out what’s wrong with it from a mortgage broker
  • Establish a timeline to begin fixing the issues and a target date with your lender to obtain approval
  • Gather all financial verification data the lender requires in week one
  • Establish a written outline of a debt plan, how specifically you will use institutional debt if applicable

Wholesale / Flip method:

  • Very difficult to accomplish because of the costs attributed to marketing and the amount of time needed
  • Many people think they can wholesale or flip their way to buy and hold, almost never works that way, it’s a trap
  • It takes a ton of marketing to find distressed sellers, which can cost a great deal of money
  • Lots of opportunities to lose money (dishonest or untalented contractors, changing market conditions, etc

Crowdfunding Portals:

  • Challenging to navigate and require a ton of info
  • Appraisals and other verifications are often required as are well documented plans to be submitted for approval which takes a bunch of time and energy

Raising Private Capital

  • Self Directed IRA Account Holders
  • Standard IRA Account Holders can be converted quite often, read Self Directed IRA Handbook – Mat Sorenson (sdirahandbook.com)
  • Helps others accomplish what they are unable, unwilling or afraid to do

Summary:

  • The deal must make sense (easy to understand by funding partner)
  • The deal must be profitable and be able to afford the debt
  • Always Hesitate To Speculate – To avoid danger
  • Many people value their time more than money, learn to recognize and capitalize on that

 

 

 

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