| Here are 6 ways to fund your deals: | | | | Once established, equity lines can be a quick and |
| Bank Financing: This is the first and most commonly | | | | relatively inexpensive method for financing a deal. |
| referred to technique for novice and seasoned | | | | Private lenders: These are people that typically don't |
| investors. Bank Financing often offers the cheapest | | | | make loans at all. They have money sitting in savings |
| and longest term financing available. Mortgage brokers | | | | or other low interest bearing accounts. They usually |
| are mostly used for this king of financing. The | | | | consider investing in your projects because the loan is |
| problem is that motivated sellers usually need cash | | | | secured by real estate, and you will offer them a |
| right away, and this kind of financing can take 30 | | | | better return on their money than they can realize |
| days or more to fund. | | | | with savings. These potential lender can be your |
| Refinancing: This is simply obtaining a new loan to pay | | | | friends, doctors, attorneys, anyone with money to |
| off a loan that already exists on a property. Title | | | | invest. This can be a very attractive method for |
| does not change hands. Only the security deed | | | | lending because you can negotiate the terms, and |
| changes. Reasons for the refinance are better terms, | | | | there is no qualifying process. |
| or there is large enough equity to do a cash out. | | | | Unsecured lines: These are the credit cards in your |
| Hard Money Loan: A hard money lender is a quicker | | | | wallet. For portions of funding or repairs, these lines |
| faster way to get cash. The loan is based on the | | | | can be great sources of short term financing. Call you |
| value of the property itself, and typically not on the | | | | credit card company for increases in the lines |
| credit of the borrower. Many hard money lenders | | | | available and negotiate better terms. You can also |
| were at one time or are real estate investors. Closing | | | | ask for promotional rates. Make sure you use this for |
| can happen in two weeks or less, but the fees and | | | | making money, not buying toys. |
| interest rates are much higher than a regular bank | | | | This is just the tip of the iceberg. There are many |
| loan. Hard money loans are typically used as a short | | | | ways to creatively finance your deals. Keep reading |
| term method of finance, and are sometimes referred | | | | and learning about different ways to make it happen. |
| to as bridge loans. | | | | Also-don't forget that mixing up the strategies is a |
| Equity line: This is a loan on the equity of a property. | | | | strategy in itself. Sometimes it may take a traditional |
| The benefit is the funds can be accessed when | | | | loan, plus hard money and use of your equity line to |
| needed, repaid, then used again as needed. So you | | | | make the deal happen. Just make sure the number |
| only pay interest when the funds are being used. | | | | work! |