It all started on a real estate site I visit regularly BiggerPockets, which is my favorite and the best real estate forum on the internet. Josh really does a great job of keeping spam off the site and has really built a strong community of investors.
As I said, I was getting my daily fix on BiggerPockets and I saw a gentleman from Southern California posted a thread that he was looking for wholesale deals that he could buy and flip. I send him a message with some deals I have available at the time and before you know it we had an hour long phone conversation about the industry and what’s going on. I pitched him on a couple deals I had at the time.
He gave me a big clue that one of his major motivations was he had funds available but no deals. I pitched him on a creative solution to solve both our problems, I needed some funds for a project and he had excess money. He liked the ROI I was offering and immediately came to visit the property I was looking for a loan on and at the same time wanted to see some of my other rehabs. The conversation went well and before you know it, we had a deal.
Deal #1 – Short-Term Second Mortgage, with Guaranteed Interest Rate and a Percentage of the Profits
We continued to talk and about a month after Deal #1 was financed and he some additional money he was looking to invest.
Deal #2 – Open Ended Rental Financing at a Fixed Rate of Return (can be called or repaid at anytime with 45 days notice)
About two months the same investor’s friend had some money he wanted to invest.
Deal #3 – Private Money Loan on a Flip with all Payments Deferred to Payoff
All three deals where creative ways to borrow money for this business and have been a win-win for all parties involved.
If you haven’t already heard of BiggerPockets, go there now! It’s a great site.