Real Estate Investing Financing Sources - Four Types You Can Use Today

By
Industry Observer with Nexus Homebuyers

Who else needs financing for their real estate investing deals? If you invest, you’re probably looking for real estate investing financing sources… well, look no further because here are the only 4 you’ll ever need to do as many deals as you want to do.

As a real estate investor, you know that acquiring deals takes capital. And unfortunately, some investors reach the end of their capital and are forced to stop investing long before they reach their real estate goals. The good news is, you don’t have to fall into the same trap. When you tap into these 4 sources, you’ll have access to all the money you need to do as many deals as you want!

Real Estate Investing Financing Source #1 – Financial Institutions

This is the way that most people know about, and it’s still a tried-and-true way to do more deals. When you use institutional financings such as banks and mortgage companies, you’re using the principles of leverage and other people’s money to do your deal. As long as you have the down payment, and some available “room” in your credit, you can acquire deals.

Real Estate Investing Financing Source #2 – Hard Money And Private Money

These are similar to banks in that they’ll lend you money in exchange for interest payments but the difference is: they may not require a credit score or a down payment; in many cases, they’ll probably just secure the loan against the value of the property itself. So you can acquire multiple deals with the power of hard money and private money.

Real Estate Investing Financing Source #3 – Cash Buyers

One way to invest in real estate is to work with cash buyers. There are a few ways to make this work – from wholesaling to partnering. Here’s one example: you might partner with someone who actually buys the property and, in exchange for finding the deal and managing it, you might get a share of the cash flow from the deal. Get creative!

Real Estate Investing Financing Source #4 – Seller Financing

One often-overlooked way to invest is to work with sellers and instead of paying them a lump sum to buy their house, you pay them over time… just like a bank. More sellers are into this than you might realize! Just tell them about it and help them see the benefits of generating cash flow.

When I first started Nexus Homebuyers, I only understood working with banks and hard money. As I started to do more deals, I learned more creative strategies and I was able to close deals that others would overlook. I would not recommened getting creative on your first few deals, but if you're a seasoned investor, these tips might be able to help you save some capital during the upcoming year.

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Rainer
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Coach KC™ The Prosperitor™
Prosperitor LLC dba Secured Futures - Albuquerque, NM
Marketing • Productivity • Revenue • Development

Thanks Zach, good information. Wishing you the best for 2018 ! ~ Coach KC

Jan 22, 2018 01:44 PM #1
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Zach, great post identifying ways a buyer can finance a property.

Jan 22, 2018 02:14 PM #2
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Zach Tetley

Real Estate Investor In Knoxville
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