SHOW ME THE MONEY?

Today, I want to speak about where to find the money for buying real estate and/or fixing up your property getting ready to sell. Though I do hear tales of people buying a home for just a few thousand dollars, those deals are the exception rather than the rule in the Metro Charlotte area. Here are a few strategies to consider to find money for real estate ventures:

TAX REFUND- This time of year, many people are filing their taxes. Your tax refund might be enough monies for you to make a down payment or give earnest money on a deal.

SAVINGS- Consider using your savings for your real estate deals. Since everyone needs savings for unexpected needs, I would caution you to only use this stategy if you are going to use the money for short term deals.

CREDIT CARDS.- You might have a sufficient credit card limit to use cash from credit cards to fund a real estate deal. Again, I caution using this strategy only if you are doing to use the money for the short term.

OPM (OTHER PEOPLE'S MONEY)- Whether it be family or friend, everyone knows someone who has talked about investing in real estate but is not sure how. If you have the know-how on how to buy real estate, consider partnering with someone else who has the money. I would encourage to draw up a agreement on how this would work (e.g. will they share in the profit, will you buy them interest, etc.)

LIFE INSURANCE - If you have life insurance, you could borrow on the cash value of the policy. Check with your life insurance agent for more details about this.

PENSION/ RETIREMENT MONIES- There are some pension and retirement monies you can borrow from to purchase homes. If you have a self directed IRA, you can also use those monies to purchase real estate. Check with your pension or IRA administrator for more information.

HOME EQUITY LINE OF CREDIT- If you own your home, you might use a home equity line to fund your real estate deals. Check with a local banker for more information.

THE SELLER- In these days when property is selling quickly, a motivated seller might even be willing to do owner financing with no money down.

These are a few ideas on where to get money for your real estate deals. Good luck in your search whether you be a buyer or seller- Randy L. Wall, Lora Lee Properties