BUILDING A BRIGHTER FUTURE
CREATIVE WAYS TO FUND YOUR REAL ESTATE DEALS Earl Davis
There are loads of different ways to fund your deals. The specifics are detailed in this article but if you want much better information on how to do well in real estate, read my step-bystep home study guide. It has all the answers you need.
Credit Partner: A LOT PEOPLE DON'T HAVE THE CASH TO BUY A HOUSE ON THEIR OWN. THAT'S WHY SOME PEOPLE PARTNER WITH OTHERS TO BUY PROPERTY. IF IT'S TWO PARTNERS, ONE OF THEM MIGHT NOT HAVE ANY MONEY BUT THEY MAY BE ABLE TO BORROW IT FROM ANOTHER PERSON WHO HAS GOOD CREDIT. IF YOU PUT YOUR PROPERTY IN JOINT OWNERSHIP THEN YOU CAN USE BOTH OF YOUR CREDITS TOGETHER.
I suggest that you know them very well or have a good agreement in place prior to.
Business Partnership One creative way to fund your deals until you can actually qualify for real estate financing is through partnerships. Generally, it’s better to partner with someone you know so you know how reliable they are. However, if they suddenly disappear or prove unreliable, then of course it's important that there's some form of contract in place. It’s one thing to do a partnership on one deal and another thing to create a partnership where you’re going to buy multiple deals.
Seller Financing Another way to fund your deals is to get the seller to finance it. This may not work all of the time, but when it does provide a powerful solution for financing deals. When asking a seller to do seller financing, it is important to ask what they will do if the property doesn’t sell. If they are geared up for handling rent payments, then this could be a good option.
Cash Partner: CASH PARTNERS ARE A POTENTIAL SOURCE OF FUNDING FOR A DEAL OR BUSINESS, BUT THEY DIFFER FROM EQUITY OWNERSHIP. THEY EITHER PUT UP THEIR OWN CASH MATCHING YOURS, OR OFFER EQUITY GIVING THEM CONTROL OF YOUR COMPANY. YOU COULD ALSO OFFER YOUR PARTNER A 10% RETURN ON THEIR CASH PLUS A PERCENTAGE OF PROFITS AT THE END.
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