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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