Many times, when we think of 'flipping houses' we think of a quick lump some that we can get when selling a home that we've bought, fixed up, and then sold.

Wouldn't it be nice to get both a lump sum at closing as well as cash flow each and every month?

A few problems arise: Financing to purchase and hold onto a piece of real estate.

With banks really tight these days, this is what real estate investors face. Of course, you can go with lease options, wraps, subject tos etc, but you can also bring in credit partners into an LLC format to purchase the home using their credit.

YOu both share in the lump sum created at closing, as well as monthly payments when sold via owner financing.

Not a bad win win situation.


Other ways to finance homes through credit partners and private lenders.
Hi everyone!

More and more HML (hard money lenders) are looking at your credit score. However, if you can get a deal with a very low Loan to value ratio you may be able to negotiate with the HML.

YOu'll find a link to investment clubs in your area on my blog unde REI Clubs.

Private investment money is also a great alternative. You can create a simple packet to present to prospective private lenders on my site under "rehabbing".

Private lending is really the best way to go as it affords you flexibility in terms, great interest rates, and sometimes no monthly payments while you fix up a property and get it ready for sale. Many times you can actually get more private money than with hard money loans.

Private money affords you with privacy (since you're not doing full docs like other loans) as well as a quicker turn around so you can get your deals done fast.

According to managing director of Managed Mortgage Investments Don Konipol, here are what the private lenders are looking at when they think of investing:
1) Type of property
2) Exit strategy
3) Yield, cash flow, income
4) loan to value ratio

Hope it helps.

Private lenders are so valuable in they provide the fast cash in order to get deals done.

To start attracting private lenders, establish credibility. Start doing deals that lenders can see/touch. Create a small show portfolio of properties you own or have flipped. They need to feel comfortable and secured in their position with your comany.

The flexibility factor with private lenders is also a huge advantage. Instead of hard money- private lenders can provide the funds needed to purchase a property, do repairs, and pay for holding costs. Many times you are not making monthly payments, interest rates are favorable, and you have more control over when the money is due.

Private lenders can be found first among friends, family ,and within your circle of influence.

It's good to gradually bring them into your deals, for example as a small 2nd mortgage in order to do repairs on a home or for small amount needed to cure a defaulted loan in order for you to control a house.

From here, you can move on to larger loans and bigger deals- after you have established a comfort level with your lenders.

These lenders are gold- treat them well.