Nov 14, 2017
Today is going to be a fun
episode because we talk about how to fund your deals. There are a
lot of little pieces to the total funding package. I’m going to
give you the juicy details of how it works and how to remember
everything. We’ve talked about how to find deals and make offers.
Now it is time to talk about how to get funding. We will go over
where to get private funding, how much of it to use, the capital
stack, and more.
I am so excited about this
because I love the cashflow life. When you start from nothing it is
really exciting to become successful and have successful real
estate deals. I also appreciate all of the new listeners and
reviews. I have a fun episode coming up where my wife is going to
join me and share a little about me. She has supported me, and this
has been a partnership with her. She is my best friend and the
upcoming episode will be real and authentic.
Topics on Today’s
capital stack is the total amount of money it takes to fund a
- Example: 2 million dollar deal purchase price.
Start underwriting with .75
- That’s a 75% loan-to-value rate. This depends
bank finances 1.5 million, so we still need $500,000 of private
borrow all it takes for the down payment, closing costs, inspection
costs, legal costs, and capital expenditures or money to fix up the
borrow more than we are purchasing.
our job to find all the right problems that are fixable and then
fund it with all the money we need.
- Acquisition fee is 3 to 5%. It depends on how
good a deal we found. 4% of a 2 million deal is $80,000. That is
some fix and flip money.
- Investors want to get their money back with
interest. Private money cost more than loans from the bank. Bank
money is cheaper, so get as much as you can.
get discouraged when raising private money. Ask people about who
they know because that takes the pressure away.
- Pencil a higher interest rate. If the deal
still works at these numbers, it is still a deal. Don’t fine tune
the numbers until the deal is ready to close.
promise and over deliver. This is a hidden art that most people
- Showing people better numbers makes them
believe and trust in you and become raving fans.
- Always be conservative with your
also creating software to that will show you how to structure a
a commercial mortgage broker.
undervalue the benefit of asking for help. Get a referral to the
right person and ask the hard questions.
expanding your network and be the conductor of your
Links and Resources
“I run my multi-million dollar
business from my home, and I have kept it simple for a reason. I
don’t want to have to check in to the office.” Corey
“I am the conductor. I take all
the pieces that I need to assemble my team and then make sure they
are playing right.” Corey Peterson
“It’s how you put the jigsaw
puzzle together to find the solution.” Corey Peterson
Don’t forget to download
my Free Workshop Quickstart Video
Series, and if you like
what you have heard please leave a review on iTunes. On the next
episode, I am going to give a quick shout out to some of my