Thursday, March 17, 2016

OPM for Down Payment

Where do creative investors come up with the funds for a down payment on a purchase?

Perhaps they have their own cash to put down, and will use cash or a hard money loan for the balance. Most investors look for opportunities to use Other People's Money (OPM), whether it is the bank, a private lender or hard money. Most institutions or hard money lenders will require a buyer to put anywhere from 10-30% down on the purchase of an investment property.

Here are a few more creative ideas for finding OPM. You as an investors could:
  • Use plastic and your cash advance limits.
  • Tap another person’s equity.
  • Tap equity in real estate that you already own.
  • Title to your toys as security for a line of credit.
  • Assume the sellers short term debts as your down payment.
  • Transfer their VISA on to yours.
  • Trade your skills and abilities as your down payment.
  • Buy wholesale and give to seller as down payment at retail.
Any other creative ideas out there, dear blog readers?

Happy Investing!

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