| Published | 2022-03-06 |
| Platform | Udemy |
| Subjects |
Understand Qualifying for Funding and How Funding Works
A big part of your real estate journey is going to be finding the cash to support purchasing all the of great properties that you find.
It is essential to have an understanding of how funding works. I've worked with real estate investors to help them fund properties and create cash flow. Some prefer the BRRRR method, other prefer to simply do straight purchased and do rental properties. Some investors only do fix and flips because they don't want to hold assets. However you plan on structuring your business, understanding the secondary funding market will be essential to your long term growth.
Navigating the Secondary funding market can feel tricky because it's different than getting a loan for your own personal home. The process is faster and easier but the requirements are also very different. These sources of funding are for the most part property centric.
Important points we will discuss:
Equity options- Advantages and Disadvantages of leaving more/less equity in a property
Rates and what effects them
Actual closing cost expectations- (If some guru told you 0% to buy your first property they lied)
And more...
Some common mistakes new investors run into are:
Putting a property under contract that they cannot afford and losing their Earnest Money
Expecting to put 0% down on properties because a guru said so
Not having enough cash to put down
Not accounting for closing costs
Not accounting for title and appraisal fees
Not accounting for the time it will take to close on a deal
Not accounting for the funding to cost to refinance after doing a repair property that they intend to turn into a rental
Not realizing the impact of their credit on lending
We will seek to avoid these problems.