In today’s economic climate and banking so tight there is a new surge in HARD MONEY and Alternative money sources.
Top 10 ways to get alternative cash for your real estate deal
- Leverage credit cards with low interest or now interest for short term needs. Not a great idea if you are not 100% sure it can be paid back in time, but may work are a bridge loan.
- Family and Friends…Pride typically keeps us from using these options but they are a much better source than losing a deal or not getting into the home of your dreams.
- Home Equity Loan from other properties.
- Cash Advance on hard assets
- Sell a lesser property or lend against it.
- Secure Line of Credit from a bank or lending institution
- pREIT- Put together a private realestate investment trust (pREIT) and collect investors to participate with a guaranteed return. All friends, family and others to join. This is for much larger deals since the start up costs are pretty high.
- Loan Shark
- Partner with a few other like minded people, create a LLC or INC and have the business buy the property and then pay the business this will give everyone a return and you the property of your dreams.
- Jumbo Hard Money
Jumbo Hard Money
You will typically pay points and higher interest with a jumbo hard money deal but sometimes it makes sense to get deals done.
Top 10 reasons people take Jumbo Hard Money Loans
- Less Paperwork
- Been turned down by Fannie/Freddie
- Don Qualify for conventional
- You have too many other loans
- Need a bridge
- Bad Credit
- Self Employed
- Cash Poor / Paper Rich
- Loan Requirements are too high for bank lending.