Unconventional Funding Solutions for Real Estate Investors
Lending is a big part of real estate investing … but sometimes your situation doesn’t fit the traditional lending mold.
If you … or your deals … require out-of-the-box funding … have no fear!
There is a great, big, wide world of alternative funding solutions just waiting to be discovered. And the payoff can be just as big.
Today, we’re sitting down with a veteran loan broker who is here to share the details of some of the creative loan products available for unconventional real estate investors.
It’s time to optimize your portfolio … and find new ways to claim needed capital.
In this episode of The Real Estate Guys™ show, hear from:
- Your fund-finding host, Robert Helms
- His fun-loving co-host, Russell Gray
- Investor and financing strategist, Billy Brown
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Locating leverage and getting cash for deals
One of the most important questions in real estate is … where do you get the money?
Great news! Things have changed in the lending world … and today, there are opportunities like never before … all while protecting your equity.
One of the first challenges many investors have to figure out is leverage. Leverage is what helps us magnify returns.
In a nutshell … it means the bank loans you money so you don’t have to come up with all the money to buy real estate.
Leverage is like a chainsaw. It’s a great tool … but if you use it wrong, it can cut you.
So, today we’re going to focus on alternative funding solutions.
True investing is about focusing on cash flow. If you do that, then you can weather pretty much any storm.
Right now, the market is pretty hot. There are people out there who have wisely built a nice portfolio … but now they have five, six, seven, or more loans and they can’t get any more.
And yet the rates are down. That leaves those investors staring at a lot of cheap money that they can’t get their hands on.
So, those investors look at the equity they have in their current properties … and they want to get at that equity.
If you’re not liquid … you’re going to be like a kid locked out of the candy store.
If the credit markets seize up … all that fabulous equity that you have disappears. But if you have strong cash flow … you’ll weather it.
How can you liquefy equity? How can you take advantage of lower rates in your portfolio and free up money so you can continue to invest?
Loans designed for investors
Billy Brown is a seasoned investor and loan officer who specializes in helping investors and syndicators figure out the finances of investing.
One of the big problems Billy sees is that investors get successful, start to build their portfolios … and then get what we call Fannie-d and Freddie-d out.
They no longer conform to those guidelines Russ was talking about. They suddenly have a hard time getting a loan.
Billy has the ability to sit down with these people and help them be able to take individual loans and restructure that in a way that frees up their qualification.
“I love infinite returns,” Bill says, “so that’s how I wear my hat. I focus on how we can use the tools available to us inside lending and our lending partners to go create infinite returns.”
Billy has a few different strategies in place to help people access equity.
The first is portfolio lending.
There are a lot of portfolio lenders out there. Banks and non-banks will do it. The idea is to take everything and put it together as an investor loan.
The rates might be a little bit higher … but what it buys you back is the qualification of those loans. Plus, you get the option of one loan servicing multiple properties.
This type of loan is better than going through Fannie Mae or Freddie Mac because it is designed for the job you are trying to do.
You go from 9 or 10 loans with 9 or 10 mortgage payments that may or may not be escrowed down to one mortgage with escrow … and a whole bunch of cash.
Billy says that if you have a simple written rule or schedule of real estate owned and your personal financial statement, he can come up with a plan fairly quickly.
“Usually within 48 hours I have a pretty good idea of whether I can get you a recourse or non-recourse option and set out the strategy,” Billy says.
Billy also says that these portfolio loan options are fun because they are designed for investors and have a cash flow of their own.
Special considerations for special loans
What happens if you want to sell one of your properties?
Billy says that is one of the first questions he asks when he consults with investors. “Are there any ugly children in this portfolio that you want to get rid of? If so, leave them out of the loan.”
This type of lending option is really designed for the investor that wants to buy and hold a portfolio and keep hanging on to it for at least 3 to 5 years.
The reason there is a prepayment penalty is that lenders put a certain amount of resources, time, effort, and capital to be in a position to collect the interest rate from you.
Lenders want to make sure they’re making a return … so you can’t use this type of portfolio strategy and then turn around in 10 days and sell it without paying a heavy fee.
So if you’ve spent the last several years acquiring a portfolio of single family homes that are working for you … but you would like to have access to the capital … this is probably a great tool.
Each lender has their own set of circumstances … and most require you to have property management.
The property manager is the least respected and most important person on your team.
If you have commercial properties, you probably already have management in place … but if you have single family homes, you could still be managing yourself.
“That’s a great way to learn for the first couple of years, but eventually you want to hand that job off,” Billy says.
Discover the method that works for you
No matter what your circumstance is, Billy and his lending network can help.
“We can do anything from $100,000 cash out refinance of a single family rental up to a $100 million CMBS loan,” Billy says.
To learn more about unconventional funding solutions for investors like YOU, listen in to the full episode!
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Billy Brown
Billy Brown
If your banker says it’s a no-go on your loan … You’ve still got options!
Real estate investors seek infinite returns using money to make money … but how do you get your hands on OPM? (that’s short for “Other People’s Money”)
What do you do if your banker says no … And you don’t want to give away equity in your deal?
That’s where Billy Brown comes in.
They can help you with both Bridge and Permanent lending solutions for your SFR portfolios, multi-family, self-storage, mobile homes, hospitality, retail, and office deals in most states in the U.S. … and have solutions for foreign investors as well!
As a real estate investor himself, Billy Brown knows the importance of creative and reliable lending.
Billy educates other realtor and investor groups throughout the country on how to become more profitable using the right lending tools and works hard to help investors like YOU make deals happen.
Billy and his team underwrite in-house and outsources funding through its network of bank and non-bank lenders … to speed up your approval process.
And when they deliver the funding request, it is completely packaged up with a credit memo … so there are few, if any, questions before the lender delivers OPM to your escrow.
Loans available range from $200,000 and can go up to $50 million … so get started on the path to capital for your next deal.
Whether you want a thorough financing and leverage check-up on your entire portfolio … or to cash out some equity to re-invest for more profits … or just want a peek into the possibilities for financing a current deal …
Simply fill out the form below to get your financing questions answered … Billy and his team will reach out to discuss all the possibilities!
Financial Strategies to Reposition Equity for Maximum Profit & Security
Financial Strategies to Reposition Equity for Maximum Profit & Security
Don’t leave money sitting around … put it to work and make some money!
Is your equity lazy? Is it idly sitting on your balance sheet doing nothing to generate cash flow … It needs to go to work for you!
No one understands this better than Billy Brown.
Billy is an investor and lending solutions guru who specializes in Bridge and Permanent lending solutions for real estate portfolios.
They problem solve so their clients get the highest leverage and ROI possible on every deal … and the first step is optimizing your current portfolio. Not only will you discover higher ROI’s …
But you’ll protect your equity from bursting bubbles!
Sure, you could sell everything and sit on cash … But what’s the return on that? Not good.
Or you could reposition your equity for wealth preservation, privacy, and increased cash flow!
In this exclusive webinar, Billy joins with our very own Russell Gray to show investors like YOU how to do just that.
Watch this webinar to learn:
✓ The pros and cons of non-recourse lending
✓ Strategies for using equity in existing properties as the down payment for a new acquisition
✓ How to protect your equity from bursting bubble
✓ And more!
Keep your money safe AND put it to work for you!
Get started by filling out the form below to access Financial Strategies to Reposition Equity for Maximum Profit & Security.
Billy Brown
Billy Brown
If your banker says it’s a no-go on your loan … You’ve still got options!
Real estate investors seek infinite returns using money to make money … but how do you get your hands on OPM? (that’s short for “Other People’s Money”)
What do you do if your banker says no … And you don’t want to give away equity in your deal?
That’s where Billy Brown comes in.
They can help you with both Bridge and Permanent lending solutions for your SFR portfolios, multi-family, self-storage, mobile homes, hospitality, retail, and office deals in most states in the U.S. … and have solutions for foreign investors as well!
As a real estate investor himself, Billy Brown knows the importance of creative and reliable lending.
Billy educates other realtor and investor groups throughout the country on how to become more profitable using the right lending tools and works hard to help investors like YOU make deals happen.
Billy and his team underwrite in-house and outsources funding through its network of bank and non-bank lenders … to speed up your approval process.
And when they deliver the funding request, it is completely packaged up with a credit memo … so there are few, if any, questions before the lender delivers OPM to your escrow.
Loans available range from $200,000 and can go up to $50 million … so get started on the path to capital for your next deal.
Whether you want a thorough financing and leverage check-up on your entire portfolio … or to cash out some equity to re-invest for more profits … or just want a peek into the possibilities for financing a current deal …
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