THIS slideshare be focusing on FUNDING. If you work with (or want to work with) INVESTOR buyers, understanding the unique funding options for these buyers is a MUST. You will learn about: • The 3 most important things an Equity Partner looks for. • Hard Money Loans: How to get them and how to make them work for you. • Private Lenders and Trust Deeds • Leverage: When it helps & when it hurts. • How to determine what source of funding is right for your client. This workshop series covers the 5 F's of Residential Redevelopment: Finding, Feasibility, Funding, Fixing, and Flipping. In our upcoming workshop,

1. GABHART INVESTMENTS, INC.

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11. • Share information &
Network
• Agents, investors,
& contractors
• Part of our 5 F’s series
• What we do
• Backgrounds
GabhartInvestments.com

12. • While many investors
see an opportunity in
this market to buy
discounted properties,
they may not have the
time, capital, or
experience to
formulate a strategy
and execute it
effectively.

13. •Finding
•Feasibility
•Funding
•Fixing
•Flipping

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EQUITY DEBTBOTH

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18. • Metal Detector?
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19. • Friends & Family (careful)
• Pre-existing relationships (NO ADVERTISING)
• Where else?
GabhartInvestments.com

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YOU THE DEAL

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YOU THE DEAL

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DEAL YOU!!!

23. Positives
• DISCUSS
Negatives
• Discuss
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24. 1. Alignment of interests
2. Experience
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25. 3. Quality Returns
•Does the return outweigh the
perceived risk?
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27. Pros Cons
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28. 1. Determine how much equity you have and how
much debt you need
2. Put together a package: Loan app, Proforma &
Budget, CMA, Photos, Contract & Title report and
BUSINESS PLAN!
1. The less they know you the more thorough you should
be
3. Meet lender at the property & discuss strategy
4. Negotiate mutually beneficial terms
GabhartInvestments.com

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30. 1. Find at SDCIA & FIBI networking events, Loan
MLS, our workshops, referrals from other
investors
2. Amount limits (75-80% of cost 65% ARV)
3. Cost (7-14% and 2-4 points) (all negotiable)
4. Term
5. Pre-payment penalties
6. Personal guarantees
GabhartInvestments.com

31. When it hurts & When it Helps
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32. 1. When things are going well
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33. 1. When it’s not going well!
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35. 1. Do you have enough cash to buy and rehab a
property without a loan?
2. DO you want the risk of defaulting on the loan
if the project goes bad?
3. How much time do you have to raise capital?
4. What are your equity return expectations?
GabhartInvestments.com