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    6 Replies Latest reply on Feb 7, 2008 6:27 AM by LUCKIEST

    Capital Needed for Real Estate Investment Co

    Jon Think Newbie
      We are a new Real Estate Investment company buying mostly foreclosure and selling immediately to individual investors at a 10-20% margin. Everyone involved in these transactions wins.

      We are currently using hard money to purchase the homes due to the fact it's simple, low doc, 100% and quick.

      The drawback is that it costs 4 pts each loan. Based on the above margins, that really cuts into the profits. Credit is definitely not a strength, but I'm looking for alternative sources of capital.

      Within a couple months we'll be up to 5-7 transactions and more per month. Currently in the process of taking out a blanket insurance policy to cover all 'inventory,' so capital is protected from fire, flood, earthquake, etc...

      Most of the best deals out there today are bank owned, so they are very concerned with how long the need to hold on to a property. If we are able to submit cash offers and close quickly, we'll be able to purchase at 5-10% less than now.

      Please let me know if you have any suggestions or solutions. Thanks.