I strongly believe in spending cash to buy real estate.
I believe that no matter how long it takes to make and save that money, you should only use your own cash. Well, with that said, I still want to offer you some other solutions.
3 Ways to Fund Your First Flip
1. Family and friends
Therefore, the first way you can make money with your first flip is with your family and friends. Just go to mom, dad, brother, sister, uncle, cousin, friend, or someone with your close influence. These people are most likely to trust you when you are a beginner and don’t know much. And it’s quite likely that they will lend you some money for your first flip, especially if you offer them a great percentage split or profit split.
Well, here are my words of caution. At that time, I was borrowing money from my family, but I lost it. It took me three years to repay it, but now it’s the most embarrassing and terrible feeling I’ve ever had. So if you’re borrowing money from your family and don’t make money on your first transaction, you’ll probably be in a miserable world for years before you repay that money. Another thing to keep in mind is that if you borrow money from a few families and start to get well, everyone will be your best friend before you know it.
2. Hard money lender
The second method is by a hard money lender. Now, I’ve worked with hard money lenders in the past, but now that we have our own capital, we don’t have to work with them. soul. I like to control shots and move them as I want, when I want.
Anyway, hard money lenders usually need achievements, so it’s hard to go to one and just ask for money for a great deal. Most of them want to know your past statistics about all the other transactions you made, the number of properties you bought, the number you turned inside out, and the margin of all the transactions you made. .. So keep that in mind. The world owes you nothing as much as some of you might think so. Before people start to trust you, you really have to grind it and have a proven track record. After making a lot of deals today, I go to a meeting, and there are so many people throwing money at me that it’s absolutely crazy. Still, as I said, I’m lucky enough to spend my cash.
I would like to add something else about hard money lenders. You see, I always want to say that any real estate is fine as long as the price is reasonable. So even if you don’t have a track record, you can still get a dice-like moneylender, even if you can find the right deal, negotiate hard, and make sure you can buy it cheaply. I strongly believe that people buy for people. So if someone likes you, they may give you a chance. It depends on how you present yourself and how you present that particular transaction. The first impression is all impressions, so you really want to give yourself the best possible chance to secure money from that hard money lender.
3. Your own capital
I forgot to say the important thing, but consider using your own capital. As I said before, I’ll say it again. It doesn’t matter if you need to eat ramen day or night, sleep on your friend’s couch, and get on the bus without paying rent. Save all penny. Do it for two years. i did it. I worked as a worker for 4 years, saved $ 50,000 and started. I make hundreds of transactions each year today. So I work hard, be modest, save my cash, and use my cash to buy my first real estate.
If you call mom or dad and they give you $ 50,000 to $ 100,000, remember that it’s not the money you worked for. If you call Mr. Hard Money Lender and you sell them in this transaction and they give you cash, it’s not the money you worked for. Well, if you’re spending your money and working for two years to save it, you can be assured that you’ll be more cautious and diligent because it’s your capital.
So these are my zero points zero 2 Australian cents. Did you enjoy it? I would like to hear your strategy.
Are you for or against?
Please comment below.