All of us run into a situation sometimes when we believe to have good deal on hand but cannot get any money to make an offer on the home. This is after one called everybody one 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.
So how can you do a deal when you don't have the credit to borrow and you don't have any cash? I do have a few suggestions as I have been in that boat before - all successful investors have been there.
1. I don't believe you have talked about money to absolutely everyone you could find. Sit down and make a list list of everyone you know who may have money to lend i.e. doctors, lawyers, etc., and don't forget that everyone you know knows someone else who has money. Even if in the end you don't find the money for this particular deal, it is a useful process that may bring up a contact or give you useful ideas.
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.
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.
So how can you do a deal when you don't have the credit to borrow and you don't have any cash? I do have a few suggestions as I have been in that boat before - all successful investors have been there.
1. I don't believe you have talked about money to absolutely everyone you could find. Sit down and make a list list of everyone you know who may have money to lend i.e. doctors, lawyers, etc., and don't forget that everyone you know knows someone else who has money. Even if in the end you don't find the money for this particular deal, it is a useful process that may bring up a contact or give you useful ideas.
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.
About the Author:
About the author: Jesse Davis is an expert wholesaler in the Jackson, Mississippi, Real Estate market. He has wholesaled over 80 properties this year alone, and he teaches a seminar on how to really be successful in today's market. Click here to learn how to find all the buyers you will ever need to build a massive monthly income in Real Estate today
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