Find All the Cash You Need to Fund Deals Without Going To the Bank One of the greatest challenges to any real estate investor is raising the money to fund deals. Going to the bank for money can be a long and arduous task. Plus, the bank is going to insist that you fund the deal in your own name which can be damaging to your credit. In fact, taking properties in your own name can be outright dangerous. So, where do you get the money to fund your deals? There are actually several good ways to find money to fund deals and end up with all the money you will ever need. The first thing you can do is to find hard money lenders. A hard money lender will not require a credit check or long drawn out approvals like a bank would. What they will require is that you pay them an interest rate of usually 12-15%. They may also charge points on the front of the deal, usually between 3 and 8 points. These fees are sometimes negotiable and will vary depending on what part of the country you live in. A hard money lender will require that the loan be no more than 65-70% of the after repair value of the property. If there is enough room in the deal, they will also let you fund the repairs from the amount you are borrowing. Their interest is guaranteed by a first mortgage against the property. Using hard money lenders in your business is an easy way to get the money you need quickly. Using a hard money lender comes in handy when you are going to buy, rehab, and retail a property. Even though using a hard money lender is expensive, if there is enough profit in the deal for you, it is well worth the investment. So how do you find these hard money lenders? There are several ways to accomplish this. One way to find them is to simply check with your local real estate club. There are usually hard money lenders there. Another way is to check with mortgage brokers where you live. They will generally know of people who are looking to lend hard money. You can also run an ad in the real estate section of your local newspaper. You can talk to people you meet at real estate events or seminars you are attending. These are all good ways to find hard money lenders to fund your deals. Another way to fund your deals is to use private lenders. A private lender is a person who will fund your deals usually with no points and a much lower interest rate. There are several ways for you to find private lenders for your business. One way is to simply check with people around you (relatives or friends) who may have funds available that are not drawing a very high interest rate in a CD, IRA or money market account. Another way to find private lenders is to check with doctors, dentists, or attorneys you may know who have money available to lend or who know someone with money to lend. You can also check with your local real estate club, mortgage brokers or with people you meet at real estate seminars you attend. You can also run an ad in your local newspaper seeking private lenders to fund your deals. Another way still to fund deals is to simply ask your seller if they are willing to owner finance your deals. Many of them may be looking for a monthly income and may be willing to hold a mortgage for you. There are many ways to fund your real estate deals without going to the bank. You just have to be a little creative and you will have all the money you will ever need to fund your deals.