How to Fund with OPM in Real Estate
Categories: Blog Posts
What’s the power of OPM as real estate gap funding?
It’s rare that one lender will cover 100% of the costs associated with a real estate investment. You’ll need to develop some other sources of funding to fill the gaps.
Most gap funding will determine whether to lend to you based on three things: credit, assets, and experience.
Both the amount of primary funding you’ll receive from your lender and the amount of gap funding you’ll be able to get will be dependent on credit, assets, or experience.
The most powerful source of gap funding, however, involves none of those requirements.
Real OPM as Real Estate Gap Financing
One way to fill that funding gap is by finding real OPM (other people’s money).
This means connecting with individuals who want to make a better return on their money than their bank provides. Lending you the money for your real estate projects can get them that better return.
OPM can be used flexibly for a down payment, carry costs, or construction costs on any real estate project.
Additionally, OPM is one of the cheapest, fastest funding options for real estate investors. It can be a good option if you don’t have great credit, or don’t have many existing assets. With OPM, you don’t need good credit or a property with equity – you can set your lender up with a lien on the property you’re buying.
More Help Setting Up Other People’s Money
We’ve helped with thousands of transactions worth millions of dollars using OPM. You can download our free OPM guide here.
Read the full article here.
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