The key is to find a private funder that is NOT hard money. You can find Equity PArtners that will take part of your profit at the back end, along with a nominal interst on a loan, and you can find ones that will do 100% financing as well. Hard money will not get you what you need in your stage of investing since they will probably price you right out of a profit. Don't rationalize depreciation as a reason to buy a negative cash flow property...there are too many oportunities available. A great tool in the beginning, as well as after you have established yourself, is establishing addess to LOC's. Be carefull thoguh. Make sure you get a money back guarantee on the "Shelf Copmany: you buy to get this LOC, and also make sure these LOC's are already attached. Too many options are out there that sell you a shelf company ready to go to the bank, but the bank doesn't know you yet. The bank will be happy to start you off at a low LOC and in about 5-10 years you can work up to an LOC worth using. The ones you want are the ones with the LOC's already attached. These are GREAT tools.
Dec 18, 2008