If you only had 10 days to source private money to fund a deal, how would you do it?
Well, that’s exactly what a student asked me when his private lender pulled the rug out from under him at the last minute. Unfortunately, I’ve seen this happen before too, so it’s best if you’re prepared for this type of situation.
Let me give you some specifics about my student’s deal and then show you 5 options for making it work.
Deal Details:
- Less than 10 days to close
- Lots of time and money invested in the project, and the bank had another buyer
- Commercial property, well undervalued and has huge potential
- Property sold back in 2006 for $570k; 9,592-square-foot, 15-unit retail/office complex
- REO contracted for $180k, which is just $18.77 per square foot (!)
Well, 10 days certainly isn't much time, but I believe this deal can definitely still happen if my student takes massive, focused action.
First, don’t panic. And with time being of the essence,…
Patrick Riddle
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.