Are you still looking for inventive ways to get your multifamily property deal done? The venues that you can utilize to get your deal done are numerous. Below are ten more possibilities for you to consider.
1. Triple New Lease Option – This is where you lease the property from the seller and you pay rent but you have an option to but as well and sublet. This is the “lease-option” for the property.
2. 401k Loan – If you have your own 401k money or you know someone who does, you can actually borrow against it for funds. Be careful because if it is your 401k money and you leave your job or get laid off, then the money is immediately due. Once you leave the company you cannot borrow against it.
3. HELOC – Home Equity Line of Credit. If you have dead equity, pull it out. A line of credit means you can access it whenever you want to.
4. Home Equity Loan – You will get a lump sum amount and you pay it back over time.
5. Credit Card Loans – A word of caution: you need to be very judicious with this. This is more for short-term loans, especially if you get a low APR offer. Understand that the minimum payment will be 2% of the outstanding balance. This could be touch from a cash flow perspective because you are paying basically 24% of the balance due over the course of a year. It can be a great short-term play.
6. Unsecured Lines of Credit Personally – you can go to the bank and get an unsecured line of credit personally or you may know someone who has an unsecured line of credit or who can get one and become your money partner.
7. Unsecured Lines of Credit for Business – This is another direction for you if you have been established for a couple of years. You can do this with your business or with someone else’s business that can become your money partner.
8. Private Lender – someone with cash that will be a private lender.
9. Private Equity Partner – equity partner who will put cash into your deal.
10. Subject To – as you do it with houses, you can do this with any property. They all have “due on sale” clauses that you need to be aware of.
As you can see, the potential private money sources are plentiful. You do not have to rely upon all of the “old” standards. With an abundance of sources, your ability to successfully put together your multifamily property deal is almost limitless.