Market conditions are incredible for real estate investing, but where are the best places to take advantage of deposit funding to get out and make more offers?
There are still plenty of great real estate investing bargains to be had, and with property prices rising fast, it’s really an all you can eat buffet for investors. That is, if you’ve got the cash or access to capital for getting properties under contract and funding the required earnest money deposits. So where can you find deposit funding and take advantage of these deals?
Transactional funding can be an option for some. If the deposit itself is small or can be waived, this can work fine and deliver 100% financing including closing costs.
Innovative real estate investing pros may also consider using crowdfunding campaigns and peer to peer lending sites for funding upfront money. But approaching family, friends, and other local investors willing to partner up or offer short term loans can be the fastest and most profitable option.
Still, there are alternative commercial and business lenders willing to offer this type of funding, and even specialize in it. They will usually put up the cash for deposit to secure the contract for a few points.
Note that there may be specific stipulations of doing this, and most aren’t going to actually put money on the line if it can be lost, so beware of contract and escrow requirements before firing off offers.