Tag Archive for: real estate funding

Why You Should Use Private Money in Real Estate

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Private money in real estate has its pros and cons. Here’s what you gain from using it.

Private money, other people’s money, real OPM.

Aka… funding from real people, not institutions.

With real other people’s money, there is no box. You create all the terms.

Depending on the individual OPM lender, you can get small gap loans, or large loans for an entire project. Other people’s money can be short-term, long-term; down payments, carry costs; the options are limitless.

Private Money in Real Estate: The Pros

In addition to the total flexibility of other people’s money, here are some other benefits to this style of funding:

  • Firstly, it’s great for beginners. You don’t need experience, and you don’t need the qualifications required by most traditional lenders.
  • No (or limited) red tape. They won’t check your credit score, income, tax returns, or require an application.
  • It’s cheaper. There are almost never fees, and the interest rates are comparable to a bank’s (on the lower end for financing).
  • You can close quickly. You don’t have to wait for an appraisal to happen or for an application to be processed. Funding is a phone call away.
  • Do any deal. OPM lenders won’t have a box for you to fit in. As long as they get their return, most people could care less what type of property you invest in.

Why Would Someone Give You Private Money in Real Estate?

Is it too good to be true? Why would a random person want to give you their money?

The thing about using real other people’s money is it’s an easy win-win scenario.

People with a lot of cash are always looking for a good place to put it, but:

  • Most people don’t want to be in charge of their own real estate investments.
  • But, banks have a very low rate of return.
  • Also, the stock market is unpredictable. (A good source of real OPM is older individuals who are nearing retirement. Stocks give a good rate of return in the long term, but when someone plans on retiring soon, they’ll be looking for shorter-term stability).

These people are looking for you as much as you’re looking for them. It’s just a matter of attracting (and keeping!) the right people.

More Info:

Download our free real private money checklist here.

Read the full article here.

Watch the video here:

https://youtu.be/CyS9V9Z7zBQ

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Get 100% Financing with REAL Private Money (Other People’s Money)

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The pros and cons of using other people’s money in real estate investing.

When we say real private money, we’re not talking about companies who’ve just changed their name from “hard money lender” to “private money lender.”

We’re talking about real people. Actual individuals who want to lend you money on a real estate transaction. Real money that’s cheaper, easier, and faster than any funding you could get from an institution.

Let’s go over how other people’s money can be used to fund your transactions, plus the pros and cons.

How Does Other People’s Money Work?

Real private money is the ultimate flexible funding for your real estate investments. Once you have a relationship with a lender, funding a deal is as simple as calling them with a closing timeline and the amount you need.

Remember, we’re not talking about big Wall Street companies that call themselves private money lenders. These types of lenders have strict guidelines and an underwriting process. They have a box you have to fit in.

With real other people’s money, there is no box. You create all the terms.

Depending on the individual OPM lender, you can get small gap loans, or large loans for an entire project. Other people’s money can be short-term, long-term; down payments, carry costs; the options are limitless.

Benefits of Real Private Money

In addition to the total flexibility of other people’s money, here are some other benefits to this style of funding:

  • It’s great for beginners. You don’t need experience, and you don’t need the qualifications required by most traditional lenders.
  • No (or limited) red tape. They won’t check your credit score, income, tax returns, or require an application.
  • It’s cheaper. There are almost never fees, and the interest rates are comparable to a bank’s (on the lower end for financing).
  • You can close quickly. You don’t have to wait for an appraisal to happen or for an application to be processed. Funding is a phone call away.
  • Do any deal. OPM lenders won’t have a box for you to fit in. As long as they get their return, most people could care less what type of property you invest in.

Why Would Someone Lend You Money?

Is it too good to be true? Why would a random person want to give you their money?

The thing about using real other people’s money is it’s an easy win-win scenario.

People with a lot of cash are always looking for a good place to put it, but:

  • Most people don’t want to be in charge of their own real estate investments.
  • Banks have a very low rate of return.
  • The stock market is unpredictable. (A good source of real OPM is older individuals who are nearing retirement. Stocks give a good rate of return in the long term, but when someone plans on retiring soon, they’ll be looking for shorter-term stability).

These people are looking for you as much as you’re looking for them. It’s just a matter of attracting (and keeping!) the right people.

Downsides of Other People’s Money

So, what are the cons to using real private money? There are plenty of positives, but it’s wise to be aware of some potential trouble spots:

  • It’s harder to find lenders. You can’t walk into a bank to get this kind of money; you just have to find the right individuals. Your OPM lenders don’t necessarily have to be millionaires, but they do have to have a good chunk of free money available for you. It can take time to find these people.
  • Keeping OPM lenders can be difficult. It’s takes a lot of time and attention to nurture your real private money lenders. You need to keep their money secure, pay them on time, and provide them with good opportunities. It’s best to have multiple OPM lenders available to you.
  • Finding other people’s money means selling the people on it. People who would most benefit from being a private lender might not even know what it means. If a doctor, dentist, teacher, etc is keeping their life savings in a bank account or IRA, then they might get a better return doing private lending. However, people outside of real estate might not understand how it works. It’s your job to explain how their money gets secured and how the process works.

The funding itself may be easier, faster, and cheaper, but with private money, finding and managing a relationship with a lender can be the hard part.

Just remember that anyone with money is looking for a stable return. If you can prove you’ll provide that, funding opportunities will start rolling in.

How to Get Other People’s Money

So how does the process work once you find other people’s money?

If you need help finding, attracting, convincing, or setting up an OPM lender, let us know. For the last 15+ years, we’ve raised millions and millions of dollars through OPM. Send us an email at Info@TheCashFlowCompany.com with any questions.

Want some more information right away? Download this real private money checklist for free. You can also check out the videos on our YouTube channel.

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Why You’ll Love Using a HELOC for Real Estate Investing

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3 ways to use a HELOC for real estate investing & an example of how it could play out for you.

A HELOC is like a large credit card attached to a house. You can re-use and pay off these funds over and over.

Let’s go over a few details you should know about how to use a HELOC for real estate investing – plus what a 100% HELOC-funded investment might look like.

3 Ways to Use a HELOC for Real Estate Investing

There are 3 main ways investors use HELOCs to fund their real estate deals:

Funding Any Deal You Want

If you have enough equity in your house, you could make a down payment, fund the rehab, or purchase the whole property with 100% HELOC financing.

We had a recent client find a great real estate deal in Oklahoma, where property and fix-up, all in, was $49,000. With a HELOC, that becomes an easy transaction to fund by yourself. You can skip all the trouble of going to a lender.

HELOC financing is especially useful for auction properties – you can get your funding within a day, pay for the property (or at least the down payment) all yourself, and stop missing great deals that cross your path.

Gap Funding with a HELOC for Real Estate Investing

Another major use for a HELOC is gap funding. Gap funding supplies money for all the smaller things a primary loan or mortgage won’t cover.

You could take money from this line of credit, and use HELOC financing for:

  • Down payment
  • Repairs and rehab
  • Earnest money, if a buyer needs funds to hold a property for you 
  • Reserves, if your primary lender requires you to have a certain dollar amount on-hand for emergencies
  • Carry costs, to make loan, insurance, and other payments during the rehab

Using HELOC is the cheapest way you could fund these gaps in your loan.

Put More Down on a Property

So the third way that people use HELOCs is to put more down on a property to get better loan terms and rates.

If the bank requires another 10% more than what you have, then you can take money out of the HELOC to use. This could mean the difference between getting back financing instead of hard money or private lending.

Even if the bank doesn’t require the extra 10%, the more you can put down upfront, the more you save overall in better rates and terms.

Even if your HELOC isn’t big enough to fund an entire project, it can help you save money in smaller ways like this.

Example of How You Could Use a HELOC for Real Estate Investing

Let’s say you have a HELOC of $100,000. How can you use that in a real estate deal for 100% HELOC financing?

1. Earnest Money

You find a property you want to put under contract, so you need $2,000 for earnest money.

Instead of going to a lender or putting up your own cash, you go to your bank, have them cut you either a cashier’s check or a check on your account, put it with the title, and now you have earnest money on your account. 

You now have $98,000 available in your HELOC. You’re only paying interest on $2,000.

2. Down Payment & Closing Costs

Next, you need to put in a down payment and closing costs of $10,000 total. You call your bank and have them wire it to the title company from your HELOC.

You now have $88,000 still available, and you’re paying interest on $12k.

3. Rehab & Extra Costs

Now you’re doing your projects. You need to make repairs, pay the mortgage or hard money loan, and cover taxes.

You could put a bunch of money from your HELOC in your checking account up-front, draw from it monthly, or ask your bank about a debit card. All the expenses could go on this card – you just have to keep good accounting.

Let’s say you’ve spent $30,000 total on mortgage payments, paying contractors, and other costs. This means you took $42,000 total out of your HELOC.

Note: You’re not paying interest on the full $100k limit of your HELOC. You only pay interest on the amount you’ve taken out – in this case, the $42k.

4. Paying It Off

Lastly, you sell the property or refinance it as a BRRRR. You take these funds and put it back on your line of credit.

Now, you have $100,000 again to use on your next project.

If you want help figuring out which HELOC is best for you, download this free, quick HELOC questionnaire.

Read the full article here.

Watch the video here:

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What Bad Credit Does to Real Estate Loans’ Costs

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Bad credit on real estate loans could cost you thousands over time. Here’s what you need to know.

There are multiple types of lender approaches to credit and real estate loans.

Some jack up the interest rate and leave loan fees alone, knowing you may not do the loan if you have to bring in extra funds. Other lenders keep rates low but add a lot of points. Some will add to both for bad credit.

You’ll have to talk to the lenders near you to find out what type they are. Let’s go through a couple examples and what to look for with credit and real estate loan costs.

What Costs Look Like for Bad Credit on Real Estate Loans

Here is an example of a lender who raises the interest rate and charges more points.

Firstly, the interest rate:

Secondly, here’s the additional fees based on credit score:

So with this lender, if you have a 699 credit score instead of a 740 for a fix and flip loan, then they will raise the rate by 0.5% and charge you an extra half a point.

Now, if your score drops down to 679, the rate goes even higher and the costs rise to 1 full point over your competitor with a 700 score.

How Much Does Bad Credit on a Real Estate Loan Cost You?

So let’s say we have a $300,000 loan. What does that one point difference on our credit score do if we have a 699 instead of a 700?

It costs us half a point on our rate (an extra $125 per month), plus $1,500 in closing costs ($300k x 0.5 points).

But if your score is just 21 points under 700, at 679, it will cost you $250 more per month, plus $3k in closing costs ($300k x 1 point).

Do 5 flips a year (with a 6-month turn) at a 679 score, and you would run up an extra $24k in costs over your competitors.

How to Help Your Credit for Investing

You can let your lender enjoy those funds or enjoy them yourself.

Every point counts. $24,000 a year is worth fixing your credit.

If usage is making your credit score go down, you can try these fixes.

You can also find other credit and real estate investing tips here.

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What’s Your Cash Flow: Interest Rate by Credit Score

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Lenders decide your interest rate by credit score. Here’s how it shakes out…

Leverage is the lifeblood of investing… Using other people’s money (loans) to create income and wealth for you and your family.

The largest source of funding is both small and large lending institutions. One of the top (if not the top) determining factors for lenders getting you the best funding possible… is your credit score.

Let’s look behind the scenes and see how these lenders use credit scores to determine your rate.

How Lenders Decide Interest Rate by Credit Score

Full disclosure: sometimes your rate gets jacked up just because you’re working with a greedy loan officer.

However, once you’ve found a lender you trust, you can be assured they’re using an internal system that looks something like this:

These credit boxes are what the lender uses to determine the cost of a good vs not so good credit score. (If your score is too low, you more than likely will just not get a loan).

The above example is what we would see from a typical DSCR lender. A conventional lender’s would look very similar.

The negative price adjustments are not a direct change to a rate but they are added to the cost to calculate the rate. In layman’s terms: the higher the cost, the higher the rate.

From the highest score to the lowest, you would expect to see around a 1.5% increase in interest rate. So, if the best rate was 7% at a 740+ credit score, then you may expect a rate of 8.5% with a 640 score.

Example: How Interest Rates and Credit Score Changes Your Cash Flow

As an example, let’s say we need a $300,000 loan for either a purchase or refinance. The cost of our funding, depending on interest rate, would be:

  • At 7%, the monthly payment would be $1,996
  • At 8.5%, the monthly payment would be $2,306

How does that look in credit terms? A 640 score would cost you the $2,306. On the other hand, a 740 score would cost you $300 less, at $1,996.

This is a $300 difference per month in your cash flow. Aka: a bad credit score could cost you $3,600 per year in cash flow!

An investor with a great credit score and 10 properties would be paying $1 million less over the life of their loans than an investor with the same amount of properties and bad credit.

Help with Your Cash Flow

This is why investing is easier for some people and harder for others:

Cash flow is king.

Credit will control that cash flow.

 

Want to find out how to get your credit score up and your rates down?

To get our report on the best rates, reach out to us at Info@TheCashFlowCompany.com. You can also get more info on real estate investing on our YouTube channel.

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How to Find Out Your Real Estate LTV by Credit Score

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This is how lenders figure out your LTV by credit score…

Credit scores are a major factor in any kind of financing.

When you’re looking for real estate investing loans, credit score determines your down payment/LTV. In a refinance, your amount is also decided by credit score.

Let’s look closer at how lenders decide how much you get.

DSCR & Bridge Loan Interest Rate Credit Box

Lenders each have a credit sheet or credit box that they use for all borrowers.

Here’s an example of a DSCR loan credit box. It shows the maximum LTV a borrower could get depending on their credit score:

Similarly, here’s an example credit box for a bridge loan:

As you can see, a low credit score not only leaves you with a bad interest rate but also a lousy loan-to-value. In the best case, a low score gets you a 10-15% lower LTV, and in the worst case – you’re left with no loan at all.

Example Impact of Credit Score on LTV

Let’s walk through an example. Say we need to either refinance or purchase a property with $300,000.

So, what are our options based on the above credit boxes?

A 625 credit score is about the lowest most lenders will lend to in the current economy. Here’s what we could get for our $300k property:

  • Max loan amount on a DSCR loan: $210,000
  • Max loan amount on a bridge loan: $180,000

A 720 is considered excellent by most lenders. Here are the amounts we’d get from the same lenders on the same property with this score:

  • Max loan amount on a DSCR loan: $255,000
  • Max loan amount on a bridge loan: $225,000

This is up to $45,000 difference in your loan amount based solely on your credit score.

Credit Usage & Real Estate Investing Help

In short: the higher your credit score, the more funding you can receive.

The higher the funding, the lower the amount of the down payment and interest rate costs. Your credit score will always save or cost you money in real estate.

You can find out how credit impacts your rates and or cost here. Additionally, you can get quick ways to increase your score here.

We are here to help you increase your cash flow by using all means to increase the availability of cheap, easy, and quick funding.

Reach out with any questions, and for more on real estate investing, check out our YouTube channel.

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What to Know About OPM Lenders

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Ordinary people’s money is fast, cheap, easy funding, but why would OPM lenders WANT to give you money?

OPM is usually known as “Other People’s Money,” but with our real estate clients, we think of it as “Ordinary People’s Money.”

Relatives, friends, and people in real estate groups would all be open to lending you money for your investments.

This type of private money is fast and less expensive, with minimal paperwork. But why would these people WANT to give you their money?

Why People Want to be OPM Lenders

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 lenders 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 OPM lenders, 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.

Read the full article here.

Watch the video here:

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HELOC Pros and Cons: Should You Get One As an Investor?

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Is a home equity line of credit a good funding option for you? Here are a few HELOC pros and cons.

A Home Equity Line of Credit (HELOC) can be a great option for real estate leverage.

However, like any financial product, there are both advantages and disadvantages to using a HELOC for real estate investing. 

Let’s explore the pros and cons of HELOC financing, so you can decide if it’s the right choice for you. 

Pros of a HELOC

  • Little to no fees. Sometimes, you might have to pay $100 or $200 to get a HELOC on your property, but there are usually little to no fees.
  • Lower rates. You’ll see adjustable rates or fixed rates. Depends on what you get, but a HELOC is usually cheaper than private money or hard money. Rates could even be as low as bank financing. You don’t pay interest unless you’ve taken money out.
  • Quick funding. You can fund a deal in as little as one day, giving you more control over the process. You can get the money as a wire from a bank, a check, or even a debit card connected to the line of credit.

Cons to This Line of Credit

  • You must own a property. You need to own a property with equity to get a HELOC. In your owner-occupied property, most banks will go up to 95-100% of the equity. So even if you only have $20,000 in equity on your home, you can still take it out for gap funding or carry costs, even if you don’t get 100% HELOC financing.
  • You need good credit. Most banks require you to get approved through income. Both credit and debt-to-income are important factors in whether you can get a HELOC or not.
  • Misuse of funds. A HELOC is as easy to misuse as a credit card is. There’s always the risk that if you don’t pay back the funds when your real estate project is done, you’ll have too many liens on your home. Treat this line of credit like a business, and pay it off once you sell or refinance a property.

If you want help figuring out which HELOC is best for you, download this free, quick HELOC questionnaire.

Read the full article here.

Watch the video here:

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How to Use Up to 100% HELOC Financing for Real Estate Investments

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How can you use a HELOC for up to 100% financing for more real estate?

Flexibility. Cheap money. Fast closings. What every real estate investor wants, and what 100% financing can give.

A home equity line of credit should be a tool in every investor’s pocket. Here’s what you need to know about 100% HELOC financing: what it is, how to best use it in your investments, and what kind you should get.

What Is a HELOC?

A HELOC is a revolving line of credit secured by a property you own – either your owner-occupied residence or a rental property.

It allows you to borrow money as needed up to a predetermined limit, which is usually based on the amount of equity you have in your home.

You only pay interest on the amount you borrow, and you can use the funds for any purpose, including real estate investing.

Why Is HELOC Financing Important for Real Estate Investors?

HELOCs are a must-have for real estate investors because they provide a quick and easy way to access funding. Whether you need to close a deal quickly or get gap funding to cover the down payment or repairs, a HELOC can help you get the job done. 

Here are 3 ways investors use HELOCs to fund their real estate deals:

Fund Any Deal You Want

If you have enough equity in your house, you could make a down payment, fund the rehab, or purchase the whole property with 100% HELOC financing.

We had a recent client find a great real estate deal in Oklahoma, where property and fix-up, all in, was $49,000. With a HELOC, that becomes an easy transaction to fund by yourself. You can skip all the trouble of going to a lender.

HELOC financing is especially useful for auction properties – you can get your funding within a day, pay for the property (or at least the down payment) all yourself, and stop missing great deals that cross your path.

Gap Funding

Another major use for a HELOC is gap funding. Gap funding supplies money for all the smaller things a primary loan or mortgage won’t cover.

You could take money from this line of credit, and use HELOC financing for:

  • Down payment
  • Repairs and rehab
  • Earnest money, if a buyer needs funds to hold a property for you 
  • Reserves, if your primary lender requires you to have a certain dollar amount on-hand for emergencies
  • Carry costs, to make loan, insurance, and other payments during the rehab

Using HELOC is the cheapest way you could fund these gaps in your loan.

Put More Down on a Property

So the third way that people use HELOCs is to put more down on a property to get better loan terms and rates.

If the bank requires another 10% more than what you have, then you can take money out of the HELOC to use. This could mean the difference between getting back financing instead of hard money or private lending.

Even if the bank doesn’t require the extra 10%, the more you can put down upfront, the more you save overall in better rates and terms.

Even if your HELOC isn’t big enough to fund an entire project, it can help you save money in smaller ways like this.

Pros & Cons of Using a HELOC for Financing

Like any financial product, there are pros and cons to using a HELOC for real estate investing. Let’s look at a few.

HELOC Financing Positives

  • Little to no fees. Sometimes, you might have to pay $100 or $200 to get a HELOC on your property, but there are usually little to no fees.
  • Lower rates. You’ll see adjustable rates or fixed rates. Depends on what you get, but a HELOC is usually cheaper than private money or hard money. Rates could even be as low as bank financing. You don’t pay interest unless you’ve taken money out.
  • Quick funding. You can fund a deal in as little as one day, giving you more control over the process. You can get the money as a wire from a bank, a check, or even a debit card connected to the line of credit.

Negatives of Using HELOC Financing

  • You must own a property. You need to own a property with equity to get a HELOC. In your owner-occupied property, most banks will go up to 95-100% of the equity. So even if you only have $20,000 in equity on your home, you can still take it out for gap funding or carry costs, even if you don’t get 100% HELOC financing.
  • You need good credit. Most banks require you to get approved through income. Both credit and debt-to-income are important factors in whether you can get a HELOC or not.
  • Misuse of funds. A HELOC is as easy to misuse as a credit card is. There’s always the risk that if you don’t pay back the funds when your real estate project is done, you’ll have too many liens on your home. Treat this line of credit like a business, and pay it off once you sell or refinance a property.

How a HELOC Works

A HELOC is like a large credit card attached to a house. You can re-use and pay off these funds over and over.

HELOC Financing vs Credit Cards

Your HELOC might function like a credit card, but it doesn’t have rates like a credit card.

Interest rates on a HELOC are around half to a third of the cost of credit card rates. HELOCs also don’t have cash limits like most credit cards. You could take your entire HELOC out in cash if you’d like, with no fee for wiring or withdrawing.

Owner-Occupied vs Rental Property HELOCs

You can also get a HELOC on multiple different properties you own. Here’s what you can generally expect as far as LTVs:

  • For a HELOC on an owner-occupied home, you can get all the way up to 95-100% of your equity available to you.
  • For a rental, the LTV caps out at 65-70% equity. You’ll have to have more equity in a rental property to make a HELOC worthwhile.

Length of the Line of Credit

A HELOC comes with a draw period. Once this period is over, they become a standard loan where you have to pay off the balance over a term just like a mortgage.

The draw period (when you can use it like a credit card) usually lasts 5-10 years.

To combat the switch to a normal loan, you can always refinance into a new HELOC. For example, you could refinance your HELOC with a five-year draw period after four and a half years. Then, you can always keep drawing on it.

Example of How a Real Estate Investor Could Use a HELOC

Let’s say you have a HELOC of $100,000. How can you use that in a real estate deal for 100% HELOC financing?

  1. You find a property you want to put under contract, so you need $2,000 for earnest money.

Instead of going to a lender or putting up your own cash, you go to your bank, have them cut you either a cashier’s check or a check on your account, put it with the title, and now you have earnest money on your account. 

You now have $98,000 available in your HELOC. You’re only paying interest on $2,000.

2. Next, you need to put in a down payment and closing costs of $10,000 total. You call your bank and have them wire it to the title company from your HELOC.

You now have $88,000 still available, and you’re paying interest on $12k.

3. Now you’re doing your projects. You need to make repairs, pay the mortgage or hard money loan, and cover taxes.

You could put a bunch of money from your HELOC in your checking account up-front, draw from it monthly, or ask your bank about a debit card. All the expenses could go on this card – you just have to keep good accounting.

Let’s say you’ve spent $30,000 total on mortgage payments, paying contractors, and other costs. This means you took $42,000 total out of your HELOC.

Note: You’re not paying interest on the full $100k limit of your HELOC. You only pay interest on the amount you’ve taken out – in this case, the $42k.

4. Lastly, you sell the property or refinance it as a BRRRR. You take these funds and put it back on your line of credit.

Now, you have $100,000 again to use on your next project.

What Kind of HELOC Should You Get?

This is the beauty of a HELOC. You’re in control. You don’t have to wait for lenders or appraisals or paperwork. You get to use the money however you need to.

HELOCs are great tools. If you have the equity, the credit, and the income, it’s vital that you find the best HELOC for you.

They come in different shapes and sizes – adjustables, fixed 5-year periods, 10-year periods. If you want help figuring out which HELOC is best for you, download this free, quick HELOC questionnaire.

Reach out at Info@TheCashFlowCompany.com with any other questions. We want our clients to get the best credit available.

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What’s the BEST Real Estate Funding Source?

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Here’s why OPM is the fastest, cheapest, best real estate funding source.

OPM refers to money 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 you can fund projects a phone call. Let’s look at why OPM is the best real estate funding source.

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
  • appraisal
  • 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.

Read the full article here.

Watch the video here:

https://youtu.be/Jym-GhdhtoU

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