In this episode, I continue my month long All-Star Q&A Series. All month, I am asking some of the most incredible real estate investors that I have interviewed over the past seven months questions that I commonly get from new real estate investors. This is an incredibly powerful series and I am really excited to bring it to you. We are continuing the series with the following question: what is the best strategy for securing funding?
Justin is flipping a hundred houses per year right now, so there really is no better person to answer this question!
He recommends the following sources for securing funding for deals:
- Private Money: You can borrow funds from any individual, giving them a fixed rate of return (usually around 10-12%) secured with a hard asset.
- Hard Money: Hard money lending is more institutionalized. You will be charged points (percentages) and junk fees, and they only will fund approximately 80 to 85 percent of the purchase price of your deal. Think about using a hard money lender, and securing the gap funding (the rest of the purchase price and the cost of the rehab) from private money lenders or even from gap funders (who will charge a very high interest rate).
- Creative Financing: Justin went into this in last week’s episode. An example might be using a 50-50 money partner or Joint Venture deal.
- Wholesaling: Focus on hitting the pavement and buying a property first. Then, if you can’t line up the funding in time, you can easily sell the property.
Justin also emphasizes the importance of always networking and letting everyone you meet know what you do and how you secure funding, so that you create a list of potential investors as you go along.
Justin is happy to answer questions about any of these methods, so leave your questions in the comments or contact me or Justin directly.
Justin really is an amazing real estate investor, and I recommend that you listen to this episode carefully because it will give you an incredible head start in the business!
Finally, I suggest you check out the amazing program that Justin and I have created: Fail Fast Flipping. You truly won’t be able to find a more comprehensive program out there, and it will help you start or grow your business faster than any other program I’ve ever seen! The program starts this week, so hurry up and join us–this program is a game-changer.
You can find Justin at: www.houseflippinghq.com