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credit
cards and limits listed. In my earlier days, I used to cut up credit cards
that I no longer wanted to use without canceling them. Many of them were
still good years later, with available credit limits. Contact those credit
card companies and order another card and ask for credit limit increase.
Call all the others and ask for increases. Fix any errors on your credit
reports and begin the process of increasing your credit score as it is
invaluable to you as an investor. I currently have about $150,000 in 0%
credit cards available to me - you can, too. My goal is to systematically
raise this to at least $5,000,000. There are several books available at your
local bookstores on credit repair that are worth reading.
3. Check your life insurance policies. Whole life and
some other forms allow you to borrow on them at very low interest rates.
That interest is often paid out of the policy. Ask your agent or call the
provider to learn more about your insurance policy.
4. Your IRA or other retirement plan can be converted to
a “self directed” IRA or self directed IRA, LLC. This will allow you to use
your IRA money to make investments in your company's projects, or make loans
to others. You can consult with specialists in the field as to what you can
and can't do with this IRA money, as the laws are very specific.
5. Go to all the home improvement stores in the area and
set up accounts…you will need them.
6. Refinance your personal residence and take money out
for your rehab and remember that your personal mortgage will be higher so
designate some of that refi money to cover the increase in your personal
residence mortgage.
7. What things are laying around your house that you
might sell on Ebay or another auction site? There are companies that
specialize in putting other peoples items on auction sites for a small
percentage of the sale. It will save you time and make you money. Every
little bit helps. You can clean up your house while you make some money.
8. Joint venture with others who have the capital that
you don't in exchange for a piece of the deal.
9. Go to private lenders and set your business on fire
-figuratively, not literally. All the methods I mentioned above will get you
the capital you need but have limits. They will run out as your business
grows. Developing private lenders is what will allow you to take your
rehabbing to the next level. You can go to family and friends. That too is
limiting, as you will run out of family and friends before you know it.
Going outside that familiar circle will prove the most financially and
emotionally rewarding. Don't forget that many of the above ways of “finding”
money can work for prospective investors.
For my
1st rehab I had to come up with $112,000 total, my next rehab I had to come
up with $595,000 and I started another. Never bite off more than you can
chew regardless of how good the deal is. Getting your rehab financed is very
much a game. In order to win as a rehabber you need to learn how to play
that game and to develop a passion for finding money.
***************************************************************************************************************
Scott
Rubin is an active investor and founder of 5 Star Property Solutions, Inc.
For more information, he can be reached at 847-579-4830 or visit him on the
web at www.a5starProperty.com. |
