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    4 Replies Latest reply on Mar 18, 2010 8:52 AM by Uncle Leon

    realestate

    gradydortch Newbie
      who will give loans to a new business just starting out only in the business name ?

      i'm new to realestate and i'm forming a llc but where will i get the loans from for my deals with no personal guarantee ? does this really work ?
        • Re: realestate
          LUCKIEST Guide
          real estate

          Who r u?? Go to Members page and share some info.

          Do you have a business plan??
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          • Re: realestate
            rdemarce Newbie
            Are you trying to get loans to purchase real-estate? What exactly are you trying to do with your business?
              • Re: realestate
                gradydortch Newbie
                i'm trying to get money to purchase and renovate fixxer uppers. once i finish renovating i want to refinance and rent the home under the section 8 program keeping the monthly income.
                  • Re: realestate
                    Uncle Leon Tracker
                    Grady, it's certain you will need money. The cold, hard fact is that you will not be able to borrow from conventional sources.

                    There are two sources of funds for you. One is called "Hard Money". this is a loan, at a very hiogh interest rate, with high points, that you can borrow from individual investors who llend money for the purchase of the property, based upon the value of the property. The Hard Money lender holdes the title. If you default, they have enough equity to easily sell the property and not loose money. For this type of loan, the lender doesn't care about your credit, or anything else except the value of the property.. Although the rate and points are high, the loan is for a short time. Therefore, it';s the points that are the real expense of this loan.

                    The second source of funds for you is to "partner" with an investor who will provide the funds for both the purchase and the re-hab.. You find the properties and do the work. ou then share in the profits according to the agreement you nitially make. If you have expeience in construction, and your ability can justify confidence, you should have no problem finding an investor. You may have to take a smaller percentage of profit on your first couple deals until the investor builds his confidence in you. You can advertise for such an investor on "Craigs List". Better yet, if you know someone with funds to invest that already is familiar with your ability, that would be your best potential source.

                    Buy very low (purchase + rehab costs + marketing cost = 30% under value) and resell quickly at 10% under value.