BUY A PROPERTY WITH "EQUITY" FINANCING By Jeffrey Taylor, MrLandlord.com
My friend, fellow real estate investor and trainer, suggested that as a landlord you should
FIRE YOUR BANK! If you do so you can succeed massively! If you do not need to go to the bank, you will not need to put down a 25% down payment. Instead, find a private lender to put up all the money for your real estate deal and pay them a great return.
Financing with your private lender can be structured as traditional debt financing with points and interest, but no down payment. Or you can structure a joint venture using EQUITY financing. With equity financing, the real estate investor does all the work but provides none of the money for the deal. Both parties in the joint venture agree to share the rental income and future equity. The equity can be split 25/75, 50/50 or how ever you work it with your private lender. This is an ideal scenario for real estate investors who do not want more debt. There's a lot of distressed inventory available at great prices, and a very strong rental demand right now in many areas of the country. Don't let concern of more debt, risk, or lack of a large down payment limit you or hold you back from buying another rental. Yes, it is possible to still invest in real estate with no money down. Structure deals directly with sellers, use private lenders, and be ready to capitalize now. My friend Jim is helping thousands of landlords every year do just that!
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