In the 1996 movie Jerry
Maguire, actor Tom Cruise plays a sports agent.
There is a scene in the movie where actor Cuba Goodling Jr. (playing a
star NFL football player) tells Cruise
over and over to “show me the money”.
That is the plea of every real estate investor as they want to be shown
the money not just in a deal, but to complete a deal. Most investors struggle to have the monies
to buy a piece of real estate or to buy a real estate note. This is certainly one of the biggest
challenges for many real estate investors.
It has been particularly challenging in these days following the housing
crisis that happened a little over a decade ago.
You will find below 10
possible sources for capital to purchase real estate notes or to purchase real
estate. I have used many of them and
had some success with them. Let me
caution you that some might be workable solutions for you or they may not be. Some of them are short-term solutions to get
you in a deal while others might be long term solutions. Let me also caution that some of them come
with some risk as the source of funds (e.g. borrowing from a life insurance
policy) is not what the funds are
intended for. I encourage you to think
carefully about using some of these sources and consider the advantages and
possible disadvantages they offer. If
you have questions about my use of some of these sources, please be in touch.
Here are 10 sources for
capital to purchase a real estate note or to purchase real estate:
·
Borrowing monies from a retirement/pension
account
·
Borrowing monies from a friend or relative
·
Borrowing monies from a life insurance
policy
·
Credit
Cards
·
Personal Savings
·
Home equity line of credit or loan on your personal residence
·
Cash out/ refinancing of a rental property
·
Business line of credit
·
Personal loan
·
Business loan
Best wishes in your real
estate pursuits. - RLW
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