Today’s video I want to talk about where to get the money to finance your rehab. You can use OPM (Other People’s Money). Here are some options:
- Private Investor – This could be anybody that you know that has money saved it could be a teacher, policeman or somebody that just retired. They might have their money in a savings vehicle with a low return. You can show them how to make a great return on their investment.
- Hard Money Lenders – This vehicle is riskier plus you have to pay higher fees and have an interest monthly payment and you have to have what they called “skin on the Game” which is having 10-20% down payment before they would lend the money.
- IRA holders – Someone that has an IRA where the money is sitting not earning a high return. They can lend the money out in a self-directed IRA to invest in Real Estate.
- Seller Finance – You can find sellers with equity in their homes that can sell without getting their money until the house is sold.