Sounds Crazy, Right?
Well, funding your real estate investment is completely achievable with the help of OPM through BP Funding Solutions.
Other People’s Money
How do you access OPM? You could reach out to everyone you know and try to borrow money from them…but that can lead to more trouble than good. You could go to a bank and ask for a loan, but if you have rough credit or the property doesn’t fit specifically into the set criteria of that bank, you won’t get approved. The quickest way to capitalize on OPM is through private money lenders! Private money lenders lend more than traditional banks. You can fund an entire fix-and-flip with many private money lenders. Most rates vary from 6 to 15%, with the points ranging from 0 to 5.
So where do these private money companies get the money to then give to you? They use OPM too! Private money lenders are not banks. They borrow money from investors at a certain rate. Private money lenders’ focused loan programs can vary from short-term single-family residence loans to 30-year amortized loans, it just depends on the company you find. Many private money lenders will lend on the ARV (after repaired value), not the purchase price.
Depending on the private money lender, your closing costs may or may not be included in the loan itself. This may include insurance, property taxes, utilities, or HOA dues. The majority of private money lenders give you money through a “draws” process. That means there is a set schedule of what repairs will be done for a certain amount of money and once those repairs are complete, the private money lender will release money in “draws”.
If you want to find out about how BP Funding Solutions can get you better rates on your real estate loans, call us at 484-869-2590. If you have a deal and would like to get a quote from a private money lender, visit www.bpfundingsolutions.com