Here is a situation that we all run into from time to time. You have on hand what you believe to be a good deal, but you cannot get any money to make an offer on the home after you called everybody you could think of - hard money lenders, banks, family.
To start with, ask yourself why hard money lenders, banks, and even your family are turning you down. Do the people you are trying to get money from have confidence in you? Or you can't get qualified because your credit isn't good enough? And is it really a deal? That is very important: Have you found a buyer and are you sure you have a deal?
If the banks and hard money lenders are rejecting you, it means you can't qualify with their standards. Normally, if it is truly a deal, they should not deny you a loan. There may be another way to structure the deal to make the hard money lender more comfortable. Maybe you can offer some kind of collateral to make the banks or family more comfortable and get them over their fears.
Then how can you do a deal if your credit isn't good enough and you don't have any cash? I have been there before, all successful investors have been there. Here are a few suggestions.
1. Do not think you have talked about money to everyone. Make a list of everyone you know (and everyone you know who knows someone else) who may have money to lend i.e. doctors, lawyers, etc. Even if this process fails to produce the money for this deal, it is still a useful process - it may bring up a contact or give you an idea for something else.
2. Financing a deal may not be what you can do right now. There is a way to structure the deal where you can control the house for a little while until you sell it. You can always put the property under contract, only risking a small amount of earnest money, and try to get 30 days to find a buyer for it - then either assign the contract or double close the deal.
3. If you just starting in real estate, the deals may not be what you should be doing. You may want to start out bird dogging, finding deals for the investors in your area right now while you build your contacts and develop your relationships. - 15224
To start with, ask yourself why hard money lenders, banks, and even your family are turning you down. Do the people you are trying to get money from have confidence in you? Or you can't get qualified because your credit isn't good enough? And is it really a deal? That is very important: Have you found a buyer and are you sure you have a deal?
If the banks and hard money lenders are rejecting you, it means you can't qualify with their standards. Normally, if it is truly a deal, they should not deny you a loan. There may be another way to structure the deal to make the hard money lender more comfortable. Maybe you can offer some kind of collateral to make the banks or family more comfortable and get them over their fears.
Then how can you do a deal if your credit isn't good enough and you don't have any cash? I have been there before, all successful investors have been there. Here are a few suggestions.
1. Do not think you have talked about money to everyone. Make a list of everyone you know (and everyone you know who knows someone else) who may have money to lend i.e. doctors, lawyers, etc. Even if this process fails to produce the money for this deal, it is still a useful process - it may bring up a contact or give you an idea for something else.
2. Financing a deal may not be what you can do right now. There is a way to structure the deal where you can control the house for a little while until you sell it. You can always put the property under contract, only risking a small amount of earnest money, and try to get 30 days to find a buyer for it - then either assign the contract or double close the deal.
3. If you just starting in real estate, the deals may not be what you should be doing. You may want to start out bird dogging, finding deals for the investors in your area right now while you build your contacts and develop your relationships. - 15224
About the Author:
About the author: Jesse Davis is an expert wholesaler in the Jackson Mississippi Real Estate market. Click here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
