Funding Your Real Estate Deals

Discover how to get funding for your real estate deals.

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Comments

  1. Very ethical Phil. Thanks for clearing my misconception about funding and clarifying the role of money in this and perhaps other businesses.

    • I have 2 questions phil , my first is that I am starting as a bird dog how do I protect myself once I locate the properties and showed them to the investor that he won’t do the deal behind my back get paid and not pay me my locator fee and 2 ,what is the fastest amount of time legally that I can close on the property I have even heard of people closing on properties in two weeks I have also heard of people close their properties in 48 hours what is the soonest time. That a deal can be close

      • Phil Pustejovsky says:

        (1) Record an affidavit or memorandum at the country recorders office
        (2) Usually people at paid at a closing. Closings take anywhere from a few weeks to a few months. The biggest complaint with real estate is how long it takes to get paid.

    • Hi Phil… I learned that money doesn’t fix everything. I’m in the restaurant business. My thought was if only had money it will fix my situation. When the access for money became available to me. It didn’t fix all that there was to fix. I see that applies to probably a lot of businesses.

  2. Kyle Meadows says:

    Transactional funding sounds great to me. My only problem is I dont have a good Buyers List yet. I haven’t even bought a house before so how will these buyers trust me to get started? I want to market my company to these buyers and creat a Preferred Buyers List. Is that an easy thing to do even though i have no experience? Should I get a few deals under my belt before I try to use this transactional funding?

    • Phil Pustejovsky says:

      You don’t need a Buyer’s List. You need good deals. Buyers are everywhere when you have a good deal on your hands. You can use transactional funding on your very first deal.

      • How quickly can these be done? I have seen deals done in 24 hours. Which never make it to being published. I am currently investigating foreclosures and related auctions. Are any of these able to fund or be involved in auctions? Generally 10% of the purchase price is required at the auction with the balance due in less than 10 or 30 days depends on the auction. Some require 100% pf the purchase price at the auction. I have seen tremendous prices in the past several months. Prices like what I have seen will not last long. Any where from 5,000 to 750,000 is the range I have seen. The ATV is up to market value or greater depending on the price.

        • Phil Pustejovsky says:

          Auctions are difficult to get funding for because typically money is required upon successfully winning the auction. Foreclosures, on the other hand, follow the typical format of contract, inspection & appraisal, and then close, so those are more likely to get funded. BUT, foreclosures and auctions alike attract competition which usually raises the price well above where a hard money lender is going to fully fund your deal.

      • Shamia Hall says:

        Hi Phil I’m new at this, this would be my first deal. I had a question on wat should I do first when finding house. I found one but do I need a tittle company to go to first? Find buyer first? I just don’t know what order to go in.

  3. Phil an example of a deal where private money would come into play?

    • Phil Pustejovsky says:

      Private Money is can be used in any type of deal…from helping with a down payment to funding the whole deal. I don’t know if I answered your question fully?

  4. allanlopez says:

    you try to get hard money and they denied you. You later found out that the hard money guys brought the property. What can you do to protect yourself from this?

    • Phil Pustejovsky says:

      Happens ALL THE TIME. I teach a certain technique you’ll probably hear almost no where else. When you apply it out there in the real world, people look at you like you are crazy. But it defends against people like hard money lenders, other investors, the neighbor next door, anyone, from stealing your deal…get a Memorandum of Agreement with a notarized signature from the seller on it and then record it when you get the Purchase Contract signed by the seller. Again, it isn’t mainstream and sometimes you run into challenges with the recorder’s office, the sellers, or both, but once you know exactly how to communicate why you need it done, you’ll be in the power position to ensure no one steals your deals in teh future.

      • Bill McVicar Jr says:

        Phil, how can someone steal your deal if you have a signed contract? If the seller does not sell to you then you can sue for breach of contract, correct?

        • Phil Pustejovsky says:

          You can. But that is a very long process, very costly, and you may still lose in court. Better to have a Memo recorded to block it from happening altogether.

          • Russell Salinas says:

            Phil, you said to get the Memo of Agreement signed by the seller, notarized and then record it when the Purchase Contract is signed. I don’t understand the process. If I get a Memo signed and notarized, yet I don’t have the Purchase Contract signed as of yet, what good does the Memo do me without a signed contract to purchase? Can you please explain the process how all this works. I’m new to investing. Thanks!!!

  5. Pamela Jones says:

    Thank you for making yourself available to me and others, I have already learned a lot from you. Happy Holidays to you and yours, Pamela

  6. Stephen Smith says:

    Hi Phil,
    I sent out 45 requests for funding to various lenders. The package included my experience as a real estate
    Investor and nobody was willing to lend me money without “skin in the game”. Do you know of any lenders who would be willing to fund the aquisition and repair costs for a 50/50 split of the profits?

  7. Masood Durrani says:

    Hi Phil,
    I am new to Real Estate Business, I am learning a lot from your Videos and book. It is a real help understanding RE. Keep up your efforts. God bless you

  8. Altagracia Liciaga says:

    Hi Phil, I find your trainings extremely informational. Thank you so much. I would like to find out how can we find the owner of abandoned houses; house that have been burned to make and offer to the owner. Could you please give some information on how to make those deals. Ther plenty of them in the Ghetto.

    • Phil Pustejovsky says:

      Use public records to find the owner’s name and then use all the services can to track them down. You may have to mail them a letter.

  9. Virginia Renaud says:

    Phil, You make it sound very easy, but I don’t understand what owner financing is. How do you get the owner put up some money when it is a short sale, or a pre foreclosure ?

  10. Do you know any good hard money lenders that work in Europe?

  11. Phil,

    When looking for lending do you find that private or hard money lenders, lend for long term? I mean like 5 to 10 years out? If so typically what percent LTV do they usually look for 70% or less?
    Great information videos thanks for your time.

    • Phil Pustejovsky says:

      No. Short term. The long term lenders are the traditional/conventional banks and mortgage companies.

  12. Thanks for making it short and sweet. you broke it down to where I have no difficulty understanding. A list of lenders with a breakdown of what type of funding they would provide would be great! If not how about a national lender that you would or may recommend for say a 1 year loan. I m just kidding cause that in its self would be worth money. Point me in a direction that I may explore. I have excellent credit but no job at the moment. Thanks Again ! del g

    • Phil Pustejovsky says:

      Transactional funding companies and hard money lenders are everywhere. A simple Google search is all you need to do to get started. However, the far more difficult challenge is building the relationships with the owners of these companies so they feel comfortable and confident in lending to you. I have built up massive goodwill with the people we work with. But I wouldn’t randomly refer you to them because I don’t know you. In fact, the only people I open up my rolodex of money people to is my apprentices because I know them personally and have trained them and can vouch that they know what they are doing.

  13. Thank you for answering us Phil, you at Awsome!!

  14. What if I have bad credit can I still get stated

  15. Freddie Bates Jr says:

    Phil first of all thank- you for, giving me the motivation to go after my dreams for my family. The class online, helps alot, my roadblock is finding a hard money lender im working on a commercial deal, found out my lender does not loan on deals above 4 units the deal has 30units with room for 20 more, i need help the right lender to work with,

    • Phil Pustejovsky says:

      There are a TON of commercial hard money lenders. In fact, there are FAR more commercial hard money lenders than residential.

  16. Hello everyone I am new to this type of thing. In fact I have never purchased a home before my husband and I are looking to purchase our first home and then move to others. We have no idea how this works or where to even start.

  17. Only for GOOD DEALS..
    that is the key…so I need to know how to determine a GOOD DEAL…

    its ok
    and I want to stay ” fastest route to Money First”..

  18. Lorna Price says:

    Mr Phil I keep miss you, I am trying to get on my feet again lost car, house, job, and computer need t9 be fix. I got new job now 2 months riding bus to work. Last job work for 22 years and laid off for 2 years I have found 15 houses and I will stake one myself just need the know how in funding with other peoples money, show me

  19. George Keseg says:

    Here’s One I have only been able to solve with Private Money.
    I found a Surplus Property at a Tax Sale that I can buy for $3,000. I have no Cash!
    I offer a private lender to double his money if he loan me $3000 to buy the property. within 90 days or Less.

    I buy the property for $3000, sell it with owner financing, $8,000 down,. Pay back the lender $6,000 and use the remaining $2,000 for title, insurance expenses, now I own it free and clear.
    ARV $45K
    SP $35,000 – @ 8% Interest on Work for Equity Sale, as is!
    $8,000 Down payment
    Buyer pays me a Monthly Mortgage PITI $$600
    3-4 year Loan with Balloon

    My Expenses $6,000 for Loan, $2,000 for misc. expenses. I get the property free and clear.

    Where can I find a Private lender that would loan me $3,000 and double their money in 90 days, no payment, no interest, no security? (I do have a building lot worth $5,000 I can put up for collateral, if needed.)

  20. Where can I get private money to buy small 1 bedroom homes,I have 10 people on my waiting list to rent,after 5 years,its a owner finance with me,most of my clients are veterans.

  21. David Wood says:

    Phil: Is not your “Gone Bad” book available in hardback (my preference)?

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