100% Financing

This month I’m trying to buy another rental property.  I’ve been thinking through how to do this with 100% financing but I haven’t made the effort to look for private funding yet.

Private funding is when you get a loan from someone you know rather than getting a loan from a bank. The good thing about it is that you don’t have to deal with a bank and the stringent lending standards most banks follow.  This lets you and the person lending you the money work out the details of the loan and the interest rate.

Private funding is great for the lender as that person is able to get a high interest rate on the money they lend.  For instance, lending to a real estate investor at 8% interest is much better than having that money in a checking, savings, or certificate of deposit account.

But since I haven’t done the work to build up a list of people willing to invest with me, I am working on trying another method.

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Asking for Money

I’ve been thinking about this topic a lot recently.  Asking for money. Private Funding for real estate is what I am interested in. I’ve done some reading about the topic and it sounds like a really good way to get financing without the drawbacks and absurdities of using a bank.

The great thing about this option for me is that I do happen to have some connections who may be interested in lending me money for real estate purchases.

I wanted to lay out some thoughts on what are some of the best ways to basically approach someone and ask, “hey, would you be interested in lending me $100,000 or so?”

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