The Flipping Pad

Posted by Dominick C. on Jun 20, 2010 7:49pm

There are several skills that need to be acquired in order to become a successful real estate investor, one of which is funding your real estate investments. This is a skill that needs to be learned early on. It should be practiced and perfected, so you can take advantage of any opportunity that comes your way. Real estate education is more than books and videos; some skills must be learned with a hands-on approach in order to develop and perfect them.

Learn By Doing
While learning through book instruction is needed to learn the basics, locating funds is a skill better learned by doing it. There is an art to finding money; contacting people, and asking them to work with you. Many real estate investors fail because they do not have the skill set to locate money, and while they may be able to find every bargain under the sun, if they donÂ’t have the financing to back them up, these bargains are useless to them.

Locating Funds
The first place to start is the obvious — local banks, as many locally owned banks have programs for real estate investors. You will need to contact several banks and mortgage companies to inquire about their terms for investors. If you are turned down, move on to the next one. This may be discouraging in the beginning, but persistence will prevail in the end.

Are You Ready For A Loan?
Before you even start applying for loans, you have to make sure that you have all of your ducks in a row. Check your credit score and make sure that there are no hidden surprises. When you apply, make certain that you have filled out the paperwork correctly and you have all the necessary documents in order. Sometimes the reason for being rejected is not your credit score, but incorrect document preparation.

Other Loan Sources
When banks say no for whatever reason, you have to be creative and start thinking outside the box. Consider other possibilities such as bank lines of credit, owner financing, investor loans, Subject To, Hard Money, etc. Your goal should be to invest without spending your own money. Even if you get a loan from a financial institution that doesnÂ’t cover the entire cost of your deal, donÂ’t let that stop you, look for other sources to make up the difference.

They say practice makes perfect and once you start practicing, you will become an expert in finding funds for your projects. Your real estate education is a never ending process. The rules of the game change all the time and you have to be prepared to change with them if you want success in the real estate business. Money is always available, even now during these tough economic times; you just have to know where it is and how to get it.

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Dominick Corey / Cherry Pick ReoÂ’s
www.cherrypickreos.com
A Supply Side Wholesaler of Reo Assets