Here is a situation that we all run into from time to time. You have on hand what you believe to be a good deal, but you cannot get any money to make an offer on the home after you called everybody you could think of - hard money lenders, banks, family.
First of all, ask yourself why hard money lenders, banks, and even your family are turning you down. It is either the people you are trying to get money from do not have confidence in you, or you can't get qualified, or it is not really a deal. Now, that is important: How do you know you have a deal if you don't have a buyer?
If the banks and hard money lenders are rejecting you, it means you can't qualify with their standards. Normally, if it is truly a deal, they should not deny you a loan. There may be another way to structure the deal to make the hard money lender more comfortable. Maybe you can offer 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. I doubt you have talked about money to everyone. Sit down and list out everyone you know who may have money to lend i.e. doctors, lawyers, etc., also everyone you know who may know of someone that has money (everyone you know knows someone else). Even if this process does not produce the money for this deal, it is a useful process that may bring up a contact or give you an idea for something else.
2. Financing a deal may not be what you can do right now. There is a way to structure the deal where you can control the house for a little while until you sell it. You can always put the property under contract, only risking 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. Maybe this is not the deals you should be starting with - meaning, maybe you should start out bird dogging, finding deals for some of the big investors in your area right now while you build your contacts and develop your relationships.
First of all, ask yourself why hard money lenders, banks, and even your family are turning you down. It is either the people you are trying to get money from do not have confidence in you, or you can't get qualified, or it is not really a deal. Now, that is important: How do you know you have a deal if you don't have a buyer?
If the banks and hard money lenders are rejecting you, it means you can't qualify with their standards. Normally, if it is truly a deal, they should not deny you a loan. There may be another way to structure the deal to make the hard money lender more comfortable. Maybe you can offer 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. I doubt you have talked about money to everyone. Sit down and list out everyone you know who may have money to lend i.e. doctors, lawyers, etc., also everyone you know who may know of someone that has money (everyone you know knows someone else). Even if this process does not produce the money for this deal, it is a useful process that may bring up a contact or give you an idea for something else.
2. Financing a deal may not be what you can do right now. There is a way to structure the deal where you can control the house for a little while until you sell it. You can always put the property under contract, only risking 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. Maybe this is not the deals you should be starting with - meaning, maybe you should start out bird dogging, finding deals for some of the big investors in your area right now while you build your contacts and develop your relationships.
About the Author:
The author, Jesse Davis is an expert wholesaler in the Jackson Mississippi Real Estate market. Click here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
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