Money questions come up in every conversation I have with newer investors. Usually right after “how do I find a deal” and right before “what if I lose it all.”
Here are the answers I give most often. They’re short on purpose, and each one points to a deeper page. Start with the full map of how to fund real estate deals, then go deep on hard money loans, private money lenders or a real estate joint venture.
One rule runs through all of it: I’m an investor, not a lender, and I don’t quote rates. Every lender prices differently. Ask for a written term sheet.
If your question isn’t here, post it in REI Skool. It’s free, and someone there has probably funded a deal like yours.
Straight answers
Can I buy investment property with no money down?
Sometimes, but “no money down” rarely means no money involved. It usually means someone else’s money: a partner, a private lender, seller financing, or a loan that covers most of the purchase. You still need cash for inspections, insurance, holding costs and surprises. Read https://real-estate-investing-for-beginners.benlovro.com/with-no-money/ for the honest version.
What is the best way to finance an investment property?
The best financing matches your strategy. Short-term money like hard money or private money fits flips and rehabs. Long-term money like conventional or DSCR loans fits rentals. Partners can fit either. Start with the map at https://fund-real-estate-deals.benlovro.com/.
What does a hard money lender look at?
Mostly the property, your after-repair value, your scope of work, your exit plan and your experience. Many also check credit and reserves. Ask every lender for a written term sheet and compare fees, draws and extension rules. Full guide: https://fund-real-estate-deals.benlovro.com/hard-money-loans/.
How do I find private money lenders?
Through relationships, slowly. People who’ve watched you execute are the ones most likely to lend. Do deals first, document them, educate before you ask, and use an attorney for the note and mortgage. More at https://fund-real-estate-deals.benlovro.com/private-money-lenders/.
Is raising money from friends and family legal?
Borrowing from one person on one property, properly documented, is common. Pooling money from many people or advertising for investors can implicate securities laws. If you plan to raise from more than one or two people, talk to a securities attorney first.
What is transactional funding used for?
It funds the first purchase in a double closing and is repaid from the end buyer’s money at the second closing. In South Carolina, marketing a property before you own it can require a license, so the order of events matters. See https://fund-real-estate-deals.benlovro.com/transactional-funding/.
What is a DSCR loan?
A DSCR loan qualifies a rental mainly on whether the property’s rent covers its debt payment, rather than on your personal income. Investors often use one to refinance after a rehab. Requirements vary by lender. Read https://rental-property-investing.benlovro.com/dscr-loans/.
How do JV partners split profits?
By contribution and risk, in a written agreement. Who brought the cash, who signed personally on the loan, who found the deal, who ran the work — those answers drive the split. There is no standard number. See https://fund-real-estate-deals.benlovro.com/joint-ventures/.
Can I use a HELOC to fund a flip?
Some investors do, but you’re putting your home behind a business deal. If the flip goes sideways, your family’s house is on the line. Talk to your lender and your spouse before you do it, and keep reserves separate.
Do lenders work with first-time investors?
Many do, though they may ask for more cash in the deal, a stronger property or an experienced partner. Showing up with clean underwriting, a contractor bid and reserves goes a long way.
What are the rates on hard money or private money loans?
I don’t quote rates or points, and you should be wary of anyone who quotes them without seeing your deal. Every lender prices differently and pricing changes with the market. Ask for a written term sheet before you commit to anything.
Is Ben Lovro a lender?
No. I’m a real estate investor who borrows to buy and renovate property in South Carolina. If you’re curious how private lending works from the lender’s side, my education site is at https://private-money-lending.benlovro.com/.