Funding Options
Private Money: Borrow money from a private lender. Each private lender is different, but these individuals typically offer much lower rates than hard money lenders. In addition, many allow you to walk away from closing with cash and/or defer all interest payments until you sell the property. You'll find a list of private lenders in our Resources section.
Hard Money: Borrow money from a hard money lender. Premium members have access to our Hard Money Lender Guide. The lenders in this guide are less concerned about your credit or income. They're much more interested in whether you're buying at a discount. Not only will they lend you money to make the deal, sometimes they will fund the entire repair amount.
Long-Term Loan: Take out a traditional long-term loan from a mortgage company or bank. Unlike hard money lenders, these companies prefer to lend to individuals with good credit and a healthy income. The money is cheaper to get, but there are drawbacks. They are typically slow to fund your deal, and they tend to shy away from properties that need a substantial amount of repairs.
Your Own Cash: Use your own cash. Those who have it generally prefer this method because it eliminates borrowing costs and speeds up the closing.
Someone Else's Cash: Bring another individual into the deal who will either partner with you or be your private lender. If they partner, they will get a portion of the profits. If they lend, they will get paid based on an agreed-upon interest rate.
Take Over Payments: Take over the existing mortgage "Subject To" the existing financing. This technique is much more likely to be effective for motivated seller leads as opposed to wholesale deals.
No Money Needed: If you primarily pursue motivated seller leads and your plan is to wholesale those properties, then you don't need cash or financing. Information on how to do this is contained in the wealth-building course on wholesaling that comes with a Premium membership. This is how many investors get started in the business.
Private Money: Borrow money from a private lender. Each private lender is different, but these individuals typically offer much lower rates than hard money lenders. In addition, many allow you to walk away from closing with cash and/or defer all interest payments until you sell the property. You'll find a list of private lenders in our Resources section.
Hard Money: Borrow money from a hard money lender. Premium members have access to our Hard Money Lender Guide. The lenders in this guide are less concerned about your credit or income. They're much more interested in whether you're buying at a discount. Not only will they lend you money to make the deal, sometimes they will fund the entire repair amount.
Long-Term Loan: Take out a traditional long-term loan from a mortgage company or bank. Unlike hard money lenders, these companies prefer to lend to individuals with good credit and a healthy income. The money is cheaper to get, but there are drawbacks. They are typically slow to fund your deal, and they tend to shy away from properties that need a substantial amount of repairs.
Your Own Cash: Use your own cash. Those who have it generally prefer this method because it eliminates borrowing costs and speeds up the closing.
Someone Else's Cash: Bring another individual into the deal who will either partner with you or be your private lender. If they partner, they will get a portion of the profits. If they lend, they will get paid based on an agreed-upon interest rate.
Take Over Payments: Take over the existing mortgage "Subject To" the existing financing. This technique is much more likely to be effective for motivated seller leads as opposed to wholesale deals.
No Money Needed: If you primarily pursue motivated seller leads and your plan is to wholesale those properties, then you don't need cash or financing. Information on how to do this is contained in the wealth-building course on wholesaling that comes with a Premium membership. This is how many investors get started in the business.
