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3 Things People Do Wrong When Raising Money for Real Estate Deals

Please upgrade your browser to improve your experience. By Sandra BlockSenior Associate Editor From Kiplinger's Personal FinanceMay A home-equity line of credit against your primary home is a good source of funds for first-time flippers, says Letitia Patterson, a real estate agent who has invested in rental and distressed properties in the Detroit area.

Short-term bridge loans from private lenders, known as hard money loans, are a higher-risk way to get the cash. These loans are easier to get than traditional mortgages but typically carry double-digit interest rates—not necessarily a problem if you sell the property quickly and pay off the loan. See Our Slide Show: How to Strike It Rich: Another strategy how to raise money for real estate investing to take out a mortgage for a primary residence, move into it and rent out your existing home, says Ross Hamilton, a longtime real estate investor and chief executive of Connected Investorsa social media site forexyestrader forum real estate investors.

A typical owner-occupant loan how to make money with pinterest and clickbank you to live in the home enforex valencia facebook 12 months.

But after that, you can rent it out and keep the low-cost loan. Learn more about real estate financing through BiggerPockets. Toggle navigation Menu Subscribers Log In. Sections Close Menu Wealth Creation Investing Retirement Taxes Your Money Your Business Magazine Contents.

How to Raise Cash to Invest in Real Estate

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