I wanted to show you the power of using private money. Private money is not really hard to get and everyone should have it as another tool under their REI toolbelt.
Below is a fix and flip deal that I will pull the trigger on if the property is still available. I'll be getting a loan at 70% After Repair Value (ARV).
- Low buying closing costs
- No down payments!
- Higher interest
- Low LTV loans
The Return on Investment (ROI) goes through the roof using private money since you initial costs are reduced. This also allows you to use your resources for holding and fixup costs.
Private money can be used for not only flips, but for buy and hold as well. After you fix the place up, you could refi and pay off the private money loan. You should be able to easily refi at 80 or less and depending on your market, it may make financial sense for a rental. This is an option that I am going to pursue.