LLC

Private lenders believe that borrowers’ financial contribution to the house flip transaction makes loans less risky. By investing their own funds, borrowers demonstrate their ability to save and manage money. They also show their faith in the transaction and its profitability. Having “skin in the game” motivates borrowers to move fast, work hard and make responsible decisions.
At New Funding Resources we fund the lion’s share of what’s needed to buy and rehab a property. However, it’s not uncommon for the new investors to struggle when coming up with their own share of the funds. Some have little in reserves and need to save more before becoming real estate investors. Others have some seed capital, but still might fall short of what’s needed. For that group, bringing in partners who can contribute the rest of the funds might be the right solution. However, before you run out to find such partners, consider these three mistakes. They will not only complicate your foray into rehab business, but also cause a havoc in your relationships with your partners.

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