Ten Ways to Fund Investment Real Estate

In other posts we have considered the funding stack and the idea of combining funding methods. Here is a list of ten possible funding sources:

1. Cash

2. New Loan (institutional or private lender)

3. Equity Partner

4. Creative Deal Structure (Subject-to, Mortgage Wrap, etc.)

5. Creative plus Private Money Loan.

6. Creative plus Equity Partner

7. New Loan plus Private Money Lender

8. New Loan plus Equity Partner

9. Seller Participation (through seller financing or partnership)

10. Lease with Purchase Option

Understand these funding structures, with their advantages, disadvantages, when they might be used and when they cannot, When you are familiar with this combination of funding possibilities and six exit strategies we discuss here, you have a multitude of deal structure scenarios.