money as a way to invest more, which leads to increased income.
Obviously, there aren’t a bunch of people out there willing to just hand over their cash so you can invest. This is when having a solid network is important. You’ve got to be clear on whom you access for help and how to best use the help they give you. It’s also to your advantage to have a high credit score when borrowing. Why does this matter in this business? First, you’ll get more access to working capital, but you’ll also have lower interest rates if you do take out mortgages or loans, which can lead to significant savings versus people with “so-so” or low scores.
WHERE TO GET MONEY Investing without Your Own Money
The first and most common option is hard (i.e., private) money lenders. In this case, people or businesses loan you money as an investment for themselves. They make money through fees and interest rates, both of which tend to be higher than other types of loans. One way to make sure you still come out ahead in the deal is to use these loans to buy homes at 50 cents on the dollar. I've had the privilege of working with several hard money lenders throughout my journey. I took the liberty of listing an example of what is typically needed to receive a hard money loan. This was sent to me by one of my hard money lenders and is pretty much what most lenders require. Check it out!
NEEDS LIST
• Pre-Loan Application – Download the sample document from the portal, fill it out, sign & upload • Schedule of Real Estate Owned – Download sample document from portal, fill out, sign & upload
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