Nov
29
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.
First, ask yourself why everybody is turning you down. It is either the people you are trying to get money from do not have confidence in you, or your credit isn’t good enough, or it is not really a deal (How do you know you have a deal if you don’t have a buyer?)
When the banks and hard money lenders are rejecting you, it means you can’t qualify for their lending criteria. If you can prove that it is truly a deal, there is no reason why they should deny you a loan. Structuring the deal differently may help, or offering some kind of collateral to make the banks or family more comfortable and get them over their fears.
How can you do a deal when you don’t have the credit to borrow and you don’t have any cash? I have some suggestions; I have been in that situation before, I think all successful investors have been there.
1. Do not think you have talked about money to everyone. Make a list of everyone you know (and everyone you know who knows someone else) who may have money to lend i.e. doctors, lawyers, etc. Even if this process fails to produce the money for this deal, it is still a useful process – it may bring up a contact or give you an idea for something else.
2. Maybe financing a deal is not what you should do in this situation. There is a way to structure the deal where you can control the house for a while until you sell it. Put the property under contract – you will only risk 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. The deals may not be something to start with in real estate. You could start out bird dogging, finding deals for the big investors in your area. It will allow you to build your contacts and develop your relationships.
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