OPM: The Real Estate Funding Holy Grail
Categories: Blog Posts
What does ordinary people’s money mean? And how do you get OPM for real estate investments?
Real estate investing has two main parts: the money side and the property side. While finding a good property to invest in is essential, securing funding can often be the most challenging part of the process.
That’s where OPM (what we call Ordinary People’s Money) comes in. OPM is the “holy grail” of funding real estate projects, making real estate investing faster, easier, and cheaper.
Let’s go over what you need to know about this type of OPM in real estate.
What Is OPM?
OPM refers to money that you find from ordinary people, such as friends, family, or anyone in your investment network.
Ordinary People’s Money can fund any real estate deal – whether it’s just the down payment, the carry cost, the whole purchase price and rehab, or a long-term hold.
The beauty of OPM is projects can get funded with a phone call. These people are your family members, friends, someone from an investment group.
The Sheer Power of OPM
Fourteen years ago, we didn’t know anyone who could fund deals for us. We had no hedge fund backing us. We had no black book that gave us all the knowledge and tips.
So we figured out how to find OPM for our company. Fourteen years later, we’ve funded thousands of transactions and hundreds of millions of dollars with OPM.
We’ve done it on a larger scale, but we know that you can do it for your investment business too. With our experience using OPM in real estate, we’re happy to walk you through the process.
Why OPM Is The Best Real Estate Lending Source
OPM is arguably the best lending source out there.
Unlike traditional lenders, OPM does not require:
- a credit check
- income verification
- extensive paperwork
The terms of the loan are also flexible to fit your specific needs. This could include carrying the interest, a longer or shorter term, or a first or second position. Additionally, OPM loans often come with fewer fees, such as points, processing, and underwriting.
OPM could be all or part of a project’s funding. It could cover:
- down payment
- carry cost
- long-term hold
- short-term flip
Any project you have, any money you need, you can find it with OPM. And best of all, it’s a partnership where you both win.
Why Would Someone Want to Be an OPM Real Estate Lender?
Part of why OPM in real estate works so well is because it’s a win-win.
Your lender gets a better return on their money than many other investment methods, for zero work.
You’re paying them a (lower than institutional funding) rate of interest. Especially with the economy as unpredictable as it is right now, people who have cash want a stable place to put it with a consistent return. Becoming an OPM real estate lender offers just that.
In addition to a stable rate, OPM investors also get to invest in their community. Rather than putting money in stocks, national banks, or huge funds, they get to support a small business like you.
Finding OPM for Real Estate
Reach out at Info@TheCashFlowCompany.com, and we can show you exactly how to find OPM real estate lenders.
What we can’t help you do is keep them – that part is up to you. When you find an OPM lender, make sure to take care of them, get them their returns on time, and be honest throughout the process.
A good lender will either stick with you for the long haul or disappear after the first deal, and it all depends on how easy you are to work with.
Other Resources for OPM & Real Estate Investing
It doesn’t matter if you’re experienced or a novice. OPM should be in everyone’s money bucket.
For more info on getting OPM, download this free checklist. For more on real estate funding and strategy, check out the videos on our YouTube channel.