Overcoming Obstacles In Real Estate Investing
Four Critical Needs for the Real Estate Investor
Every experienced Real Estate Investor knows that education is the key to unlocking all the possibilities for success while minimizing the chance for loss, but even well educated investors can be stopped short without adequate funding when it’s needed.
That’s not to say that all deals require a lot of money from your pocket to execute.
One obvious example would be in finding a property that you can sign a contract to buy at a fairly low price and then selling your contract to another investor at higher price, and there are others as well.
When you do need funds to make deals happen, you best choice is usually to borrow directly from an individual and, for their benefit, borrow from their IRA. There is certainly a lot of that money just sitting right now and probably making less for the owner than you’d be willing to pay for it.
But there are times when other funding resources might come in handy.
The first two are rather special situations, the first being the need for a Proof of Funds Letter. These can be required in order to submit a bid for certain properties such as from HUD and certain lending institutions.
Even if you have enough assets to cover the needed amounts, it may not be convenient to liquidate those assets and move money to your bank account at that time, especially without even knowing if your bid will be accepted.
At those times, it can be helpful to have a source for Proof of Funds that you can usually use to satisfy the bid requirements, and we’ve listed two below.
A second specialty need could be for Transactional Funding. This may be needed if you have contracted to buy a property from Party A and sell it to Party B virtually at the same time.
In these cases, it may be convenient to obtain the funds you need on a 24 to 72 hour basis in order to make your deal work, and there’s a Transactional Funding source list below as well.
Finally, for some deals, you may prefer to borrow part of the funds you’d need to purchase a property for a period of 2 to 24 months, depending on your exit strategy, rather than approach a long-term lender.
It may be that if your plan to fix up the property and resell it, you’d never involve a traditional long-term lender at all.
On the other hand, should you plan to fix up the property and hold it long term, you might want to approach a conventional lender after you’ve increased the property value through repairs and by having a record of “seasoned tenants” before applying for a long term loan.
For each of these scenarios, we have a resource listed below.
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Our resource for 2 to 24 month loans is Private Money Exchange founded by Lee Arnold, a successful real estate investor and educator. Funds are loaned based on the appraised “as is” value in the property being acquired and can be available within just a few days after the necessary documents have been submitted. The link to reach them is:
and click on “Borrow on Real Estate”.
Our connection for Transactional Funding is Cameron Dunlap, an active investor and educator. Cameron also has a program to provide Proof of Funds Letters up to $600K per transaction. The link to reach Cameron is:
Our third resource is for Proof of Funds Letters up to $300K per transaction, but is primarily an introduction the man known as the “Millionaire Maker”, Ron LeGrand, and many of the best know real estate educators in the country were his students.
If you feel there are any holes in your Real Estate education, there is no better education than from this man. He’s currently offering an outstanding course for just $1, which includes one-month access to his “Gold Club” which gives you access to all forms and contracts covering all aspects of running your real estate business. After one month, you can drop the monthly program if you prefer, but keep the training course.
We are members of the Gold Club ourselves and find the ongoing access to all it’s resources and regular call-in program to have Ron look over your potential deals to be invaluable.
The link to Ron is:
I hope you’ll check out each of these resources and, if you have need, join us in using them to benefit your real estate investing business.
Wishing you the best of success.
Lexis Global Marketing LLC