I am getting a lot of messages in my inbox about " How to get the money" to rehab houses and lots of them. So for those that messaged me and those that didn't, I thought I'd give my thoughts and experience on this topic.
This may turn in to a long post and my grammar will likely suffer as I don't have the time to look it over:).
#1 Face your fear- the first real estae seminar I went to was the catapult to my finding the money. The second day into it they were priming us up to "need" the course. By that timemy gut was burning and my heart was about to bounce out of my chest as I knew this is what I was meant to do. At the end of the second day we were instructed to raise money to pay for these courses... anywhere from 10k-60k... at that time I was worth about $500 bucks. To make a long story short I was calling anyone I knew that may have the ability to contribute a couple thousand. Although I didn't raise any money, I knew deep inside that I just conquered my fear of asking for money and that of itself was worth far more than the classes couldve given me.
#2 Ask and you shall receive- A couple months after the seminar I was out hustling to try ad make things happen. I was literally sending out 30-40 offers a week. From those offers I put 8 properties under contract. Keep in mind here I really had no idea what I was doing! Im laughing just thinking about it! Because I still wasnt buying them cheap enough I didn't have the ability to wholesale them like I had planned, but it didn't mean they weren't right for a rental. So I went on a hunt to find money, QUICK! I found one lender on this site that loaned money from his IRA... Off a 45k inveestment he made back $7000, very good investment for him and I was able to buy the property in cash, rehab, refi and pull a little money back out. One of the others I talked my partner at the time into buying. We bought it for 14k, put 15k in it and refid it at 55k. The 3rd property I started calling any of the investors I could find in my area and asking them if they new of any hard money lenders that would loan money on this property. I was looking through the phone book under real estate, calling I buy houses signs and so on. I found one guy that referred me to another. To this day, the hard money lender loans me money on multiple deals at a time. Btw, I gave the referral investor $500 just for giving me the other investors information. Again, long story short... I simply asked people how I can get the money or if they had any way of loaning.
#3 Partners- I still use them! Though I'd rahter soak up all the profits, partners may be a neccessity. I've used a partner to build a rental portfolio, I've used a partner to do a wholesale deal, and I currently use a partner to do a good majority of my flips. If you can show a good deal, you can find a partner to go in on it, guaranteed!
#4 People with money want to make more money- This rule will never change! Once I started to have a little success I noticed that the money was starting to be easier to find, but it still wasn't at my fingertips the way I wanted it to be. Although I was still working with my hard money lender, the majority of the money I was able to get was between 20-40k which made it hard to do the amount of deals I wanted to do. I knew of guy in town( through a real estate attorney) that financed different businesses and multiple real estate deals. I went after this guy with a bit of an obsession. I had been rejected by his secretary a few times. Finally, I called again and his mother happened to be working in the office ( a sweet old lady) she put him through to me. Although he put me through the ringer on the phone, I finally said, " I tell you what, give me 10 minutes to meet with you, show you the pics of my properties, the track record Im having and if you still don't want to do business I won't bother you anymore". I met with him a couple days later, sealed the deal, and at this time we currently have approx. a million dollars out on numerous different deals. It was a mixture of the previous rules all put into one action.
Final thoughts- There is so much money out there to be had. Practice the abundace approach ( not scarcity). Look at all the real estate around you... schools, churches, businesses, houses, bridges, cemetaries, etc. etc. those were all built my people that either had money or were able to raise the money.
Its totally up to you! and how much you desire.