Gap Financing Ideas
Every Good Deal Gets Funded
If you bring us a deal that looks profitable but you don’t have the cash-to-close to make it happen, we’ll do what we can to help you find that money.
There’s nothing worse to us than letting a deal go with profit potential.
If your deal doesn’t quite qualify for our 100% financing loan, come talk to us before walking away.
Gap financing is the “bridge” between the loan amount you qualify for, and how much you need to make the deal happen.
Here’s an example:
You have a project where all your costs (purchase price, rehab, loan costs, etc) project to be $150,000. You can get a hard money loan for $140,000, which means you’ll need to find $10,000 to make the deal happen. You can find other people to get money from, or borrow it from yourself without taxing your bank account.
Other People's Money
Perhaps the most important phrase in real estate investing.
Whether you don’t have enough cash, or you’d rather not tie up your own money (because why would you if you don’t have to), using other people’s money will unlock more deals for you.
Here are a few ways that we’ll teach you in our system to use other people’s money:
Seller Financing – The seller loans you money to purchase the property expecting a return of either interest or a percent of the profit.
Formal Business Partner – Forming a long-term business arrangement with a financial/credit partner where you split the profit.
Equity or Debt Partners – One-time partnerships where your partner provides money/credit and you do the work. Friends and family are great sources of funds for this.
Borrow From Yourself
We’ll teach you the rarely-mentioned and often overlooked strategies for borrowing money from yourself—at little or no cost.
These are among the easiest ways to find funding for deals as you don’t need to find a partner, and you can often delay payments/interest until you’ve received your profit.
We’ll teach you these strategies inside the Find-Fund-Flip System:
Self-Directed Retirement Accounts – Perhaps our all-time favorite strategy. A self-directed 401(k) or IRA account will let you invest in real estate. Use that money and enjoy tax-free profit.
Home Equity Line of Credit – Tap into the equity of your house. You can actually use the line of credit itself to pay interest on what you take out, and then pay it all off upon deal completion.
Retirement Loan – In most cases, you can borrow against your retirement accounts to make a deal happen.