Top Funding Options for New Real Estate Investors | Leverage OPM
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The video discusses how to invest in real estate without using one's own money. The speaker shares their three bucket theory, which involves using private and hard money lenders to finance the purchase, rehab, and long-term financing of distressed properties. Private lenders are individuals who have extra money and want to invest in real estate without doing the work themselves, while hard money lenders are companies that exist solely to lend money to real estate investors. The speaker recommends working with hard money lenders for distressed properties, as they can provide valuable insight and help underwrite the deal. Home equity lines of credit, credit cards, and borrowing against an IRA, 401k, or money market account are also options for funding the rehab of a property. The speaker emphasizes the importance of running the numbers correctly to ensure a successful refinance or sale. For long-term financing, the speaker recommends using small local banks and credit unions, which understand real estate and investments and will lend up to 80% of the appraised value of a property. Understanding buckets one, two, and three can allow for flipping, wholesaling, or owning rental properties without using any of one's own money.
The video discusses how to invest in real estate without using one's own money. The speaker shares t