In many regions of the country, real estate investors are having trouble in getting financing for their deals. Some hard money lenders are there that provide funds to investors who are interested in real estate investment opportunities.
By using private money you can take the real estate properties at a cheaper price than the average buyer because you're using cash. By playing the amount in cash, you are able to get the property for about 40, 50 and in some areas 60 percent below market value. You can then flip the property and sell it to the end buyer at a profit of at least 10% to 50%.
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In the flip market, there is a double closure transaction that includes 4 parties i.e. “a” to “b” and “c” to “d”. Suppose the private lender is the seller “a” and you are the buyer “b”. Now after the property is purchased by you, you have become the seller “c” and the buyer who will purchase the property from you becomes “d”. By this process, you will become an investor from a buyer.
When you search the internet look for companies that provide private money with no up-front costs. Most companies charge up to four percent before they fund their personal money for bidding. It can be very expensive. Things to look for companies that allow you to use their personal money and charge you about one percent plus the usual $ 300 admin fee to cover the cost taken out of your profits at the close. This will allow you to work several deals at once.