Find All The Cash You Need To Fund Deals Without Going To The Bank – Part 3Posted on June 9, 2014 by
Another way I have used to fund part of a deal or the rehab on a deal is to simply use a credit card or home equity line of credit. If you have a credit card with a fairly high credit line or you have a credit card with a home improvement store, these are great ways to fund the rehab on your deals. I will sometimes use a credit card to fund the rehab, and then pay it all off when I either sell the property, or when I get a significant non-refundable option deposit from a tenant/buyer. You must be disciplined enough to pay the money back to the credit card company or your credit line when you receive the profit or down payment from your deal! This is a good method to use for example, when a homeowner deeds you a property with a lot of equity, but the home needs some rehab in order for you to be able to either lease/option or resell the property.
I know that when you use a home equity line of credit funded by the equity in your home, the interest rate is usually significantly lower and the money is easy to get hold off. Usually all you have to do is write a check. I do not advocate using this method unless you know you are going to turn the deal quickly, and I would only use this method as a last resort since I don’t particularly like the idea of you using your own money to fund deals.
Another way you can find money to fund deals is your Roth IRA. If you have money in your Roth IRA, you can use these funds to purchase options on properties, or to put down payments on properties you intend to wholesale. There are actually several other ways to use a Roth IRA to fund deals. I have used Roth IRA funds to purchase vacant land at huge discounts by working with motivated sellers, then reselling the land at a profit. Just remember that the profit from deals funded inside your Roth IRA go back into the Roth IRA. There is an excellent self directed Roth IRA company that I work with called Equity Trust Company.
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.
For more information on locating all the motivated sellers and lenders you need to do creative deals, and for creative ways to sell your properties quickly, visit Kathy Kennebrook’s website at www.marketingmagiclady.com.