7 Sources of Funding for Real Estate Investment Deals Today

There are so many attract real estate investing deals out there today and no knowing how long they will keep flowing at the huge discounts being offered right now that if eve you have a significant amount of cash it is smart to seek out ways to gain leverage.

Conventional mortgages may not be viable for most real estate investing deals even if they were easier to qualify for but here are 7 alternative sources for funding rehabs, flips and wholesale acquisitions…

1. Rehab Loans

For those purely seeking out funding for deals on their own homes or a few real estate investing deals which require fixing up FHA 203 (k) loans and Fannie Mae’s HomePath financing can be viable options.

2. Self-Directed IRAs

Retirement accounts can be converted into self-directed IRAs and used to fund real estate investing deals for bigger returns. These can be your own accounts or leveraging those of others who want to profit from the foreclosure crisis and earn more on their money.

3. Private Money

Private money from other individuals doesn’t have to just come from retirement accounts either. There are trusts which need to earn more, real estate investment groups who pool funds, angel investors and venture capital firms and even the option to use crowdfunding.

4. Hard Money Lenders

Hard money lenders offer a more formalized variation of private lending. They already have money sources and loan programs established. They make loans based on the equity in a property. Unfortunately they have also become much tougher to get loans from in recent years and now operate more like the subprime lenders of the early 2000s, only without the luxury of incredibly high LTVs. Expect to have credit checked, income and assets documented and extremely conservative appraisals performed.

5. Transactional Funding

Transactional funding is the new hard money, only better. These lenders will loan up to 100% of your purchase price and closing costs with no appraisals or other verifications providing you already have a qualified end buyer lined up. Flipping real estate investing deals really doesn’t get any easier than this.

6. Flexible Credit Options

With lenders now easing up on other forms of lending due to the pressure of competition it is becoming easier for real estate investors to obtain credit cards, store cards, in-store financing, personal signature loans and lines of credit. All of these can be used for fixing up properties and with so many homes available for under $10,000 today can be used for paying cash for homes in a day. However, it is important to recognize the wisdom of not mixing your personal credit with business and your investments.

7. Business Loans

Forming a corporation or limited liability company is a smart move for real estate investors which can provide protection, privacy and even the ability to build a business which grows in value and can be sold in the future. This also means the availability of business loans and lines of credit which can be used to fund your acquisitions.

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