Where to Find the Money to Invest in Real Estate

Where can you find money to buy properties?
I get this question a lot lately.

Here are some ideas that you can try:

1. Cash or credit partner – if you know someone with cash and/or good credit who can quality for a mortgage, you can find a deal and present the deal to them to see if they want to invest with you.

2. Hard money lender – there are a lot of hard money lenders out there. Just Google "hard money" and you will find about 15.8 billion English pages. Contrary to popular beliefs, harder money can be cheaper than cash or credit partners. These lenders are investors themselves and they will make sure you have a good deal before they lend you the money.

3. Money in your self-directed retirement account – if you call the bank and ask them to invest the money in your retirement account in real estate, they will likely say no. The banks only sell stocks, bonds, mutual funds, and they only want you to buy their products so they make money. Get a self-directed retirement account and you can invest in almost anything, even account receivables.

4. Home equity line of credit – if you have equity in your home, you can get a home equity line of credit (aka HELOC) to buy properties. Robert Kiyosaki said home equity is like lazy assets. Pull the money out and invest in performing assets (not doodads). Make your money work hard for you.

5. Credit cards – there are a lot of zero percent interest for one year credit cards out there. If you can get personal or business credit cards with enough credit limit, you can buy a house nowadays.

6. Private money – if you can find people to lend you money at lower interest rate than hard money, it’s another good way to go. It can also be money in someone else's self-directed retirement account that they want to invest.

7. Ask the seller to finance the property. I will consider owner finance my properties if the buyer meets my criteria. Check out my properties for sale at www.vantagerei.com

When I first started out, I've used private money, conventional mortgages, HELOC, and more private money.

But if you buy with hard money lender or credit card, make sure you can refinance the house 6 months down the row otherwise the high interest rate will kill the deal. Feel free email me if you have any questions.