How to Get Private Lenders & Lines of Credit to Fund Your Business

I was reading an article on senior housing.  The slow housing market has delayed the plans of seniors who want to move to an independent-type retirement community but who can’t sell their homes. It’s not so great an issue for senior care facilities since the move to them is more out of necessity.

Now, what about your buyer?  Does he or she have to sell their house in order to buy yours?  If you have a financing contingency in your purchase and sale agreement, you are opening yourself up to be held hostage by the entire housing market. This is not smart.  Instead you should charge an earnest money fee equal to the amount to cover your payments and then some over the time of the contract.  And you hold the earnest money!

However, because of the tightening of the credit markets, foreclosures and the general decline in home values, you need to have your exit strategy (the one that will make you money, despite the challenges), BEFORE you buy.  It could be flipping to other investors, offering owner financing, down payment assistance, rental, etc.  Whatever you do, make sure you have realistic (below market) numbers for rent or sale prices, and realistic holding times.  If you still calculate your makiig a profit, go for it.  If not, renegotiate terms, or pass.

Remember one bad deal can negate the profit from 5 good deals, or take you out of the game entirely.  So, don’t let anxiety or greed motivate you to make risky choices.  Believe me, it is not worth it.

If you want to learn all of our strategies for dealing with buyers (or renters) including finding them, negotiating and funding them, you need to join our Foreclosure Millionaire Club.  You can try it for just a buck.  Click here to Join.

Posted to Buyer Financing, Institutional Lending, Uncategorized
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