Are you actively buying and selling real estate? Here are some helpful financing ideas for 2013:
1.Â Â Â Â Use hard money loans to do 4 deals at a time â€“ If you want to be a full time real estate investor, youâ€™ve got to be doing 4 deals at a time. This is hard to coordinate with all of your own, private cash. In order to continuously float 4 deals, you should use hard money loans to spread out your cash.
2.Â Â Â Â Get a reliable list of hard money lenders â€“ private money lenders have to be readily accessible when good deals arise. Know how long it takes each one to perform, so you can tailor each deal with a different lender in mind.
3.Â Â Â Â Build a resume to obtain a bank line ofcCredit - Once you have 10 deals under your belt, (particularly when using hard money financing) you can take your resume to the bank and ask for a line of credit. Because youâ€™ve shown loans on the properties that have been paid off in a short amount of time, this gives you even more credibility in the eyes of your banker.
4.Â Â Â Â Cash in some stock and put it into real estate deals â€“ Enough said.
5.Â Â Â Â Form your own REIT â€“ Most of a REIT's gross income must come from real estate income such as rental income. Form a REIT where you choose the properties and other investors finance them by investing in the REIT. Because the formation and operation of a REIT involves many complex legal, securities, and tax rules, you ought to seek advice from attorneys and accountants before beginning the process of forming a REIT.Â
6.Â Â Â Â Make â€œGapâ€ Loans out of your SEP IRA - Make loans to other real estate investors out of your SEP IRA and provide gap financing on their good deals. This way you can still get a percentage of the profits.
Many people are worried that January 2013 will lead to tighter times in lending. If you need a last minute loan, submit a short form on our website today and let us get your loan closed before the end of the year. Go here: http://privatemoneyutah.com/loan-request-form/.Â