Lately I’ve been telling you about some incredibly easy yet profitable ways to purchase HUD homes for pennies on the dollar. This is a tool that every smart real estate investor should have in their arsenal because it’s a great way to generate consistent profits – there is no shortage of HUD homes to purchase. But, how do you fund these HUD home purchases?
There are several strategies you can employ, but basically, it boils down to your exit strategy. Here, I’ll identify three of the most common.
1. The method I like to use is to fund my real estate purchases with private capital. Having access to private lenders means you don’t have to use your own money, you don’t have to rely on banks and you don’t have to apply for a loan. The private lender benefits by realizing double-digit returns with an investment that is secured with a note and mortgage. Trust me, with the state of the stock market and economy in general (CDs, precious metals, bonds, etc.), private lenders will be excited about getting a high interest rate on their money.
2. You can use your own money to fund your HUD purchases. Again, this is not my preferred method, but it is a definite option, especially once you start amassing profits from a few deals. You could simply reinvest the profits to the next deal.
3. Transactional funding is always an alternative. There are plenty of companies out there who will provide transactional funding for real estate deals when the deal makes sense, meaning you won’t have to deal with private lenders or dip into your own money.
If done the right way, you can make more with one foreclosure deal than many American’s make in a year. I have the tools and strategies to guide you through the entire process, starting with purchasing HUD homes very inexpensively, with virtually no marketing expenses, automatically.
If you’re ready to learn more about profiting from HUD houses, then you need to jump over to www.hudwholesaling.com – you won’t believe what you see.