My Money Is Cheaper Than Your Money
Let’s talk about different funding sources real quick.
If you want to acquire a property, you need to come up with the money. There’s a lot of ways to skin a cat.
Here’s a few:
- Cash
- Private Money
- Hard Money
- Traditional Mortgages
- FHA/VA Loans
- Lines of Credit
- Syndication
- Crowdfunding
Money is a commodity. But you can get it cheaply, or expensively.
When you develop relationships with lenders, build credibility, and have a track record of success, money flows to you. It’ll get cheaper and cheaper as you become more attractive and less risky.
BUT, when you’re starting out, it can be a major source of stress.
You probably don’t have a pile of cash sitting around to fund a purchase and renovation on your own. (If you do, there’s probably better uses anyways)
So you gotta get the money from somewhere else.
Could be institutions like banks or credit unions. Could be a hard money lender who specializes in shorter term loans. Could be from your family and friends, or from other investors who like what you’re doing and want a piece.
All are viable, but which is right for you? Which are going to make sense for your investment strategy and level of risk?
At our upcoming Tuesdays With Tammy livestream, I’ll talk about which money is cheap and which is expensive, and how to tell the difference.
I’ll also show you powerful shortcuts to credibility so you can get better rates from lenders even without a ton of deals under your belt.
These are the things I’ve learned in 20 years of investing that I WISH I knew when I got started. Life would have been a lot less stressful.
If you ever need funding for a deal (and you most certainly will), RSVP here:
The Lady Boss Of Real Estate,
Tammy
Capital City REIA
