100% financing still exists!
Private money lenders rarely take a down payment from you and may fund both your purchase and renovation of the property, or more! In many instances , investors have purchased a property for so much less than market value that their lenders have actually paid for not only the purchase of the property, all the renovation costs, AND allowed the investor to receive money at the purchase closing to put towards their operating expenses and receive an initial profit at closing. .
This sounds great, but where do I find these lenders?
Private money lenders can be family members, friends, business partners, professional or personal acquaintances, attorneys, accountants, business owners, or strangers. Anyone that you see every day could be a potential private money lender for your real estate deals. Be aware that people you encounter on a daily basis may be open to an investment proposal if you have a solid plan.
What’s in it for them?
Fixed returns on their capital providing larger profits than almost all other investment offerings , secured by real assets at below market value, insured against fire, theft, vandalism, and natural disasters, and the ability to do all of this completely tax-free within their individual retirement accounts if they wish. Need we say more ? Individual retirement accounts are an ongoing source for private money lending. People who have suffered through the erosion of their retirement accounts in recent years are likely to be receptive when you ask them to be a private money lender.
Where do the funds come from?
There are many sources that private money lenders can explore in order to take advantage of excellent investment opportunities. Individuals with self-directed IRAs can now use those contributions to build future wealth through real estate investments. The flexibility of a self-directed IRA has enabled them to have control of their contributions and allows them to take new opportunities for wealth management andrewarding growth within their funds. Finding these people and matching them with your real estate deals is a way you can finance your deal without using any of your own cash and credit.