through fees (sometimes, such as origination fees) and interest rates, both of which tend to be higher than other types of loans. One way you can try and make sure you still come out ahead in these types of deals is to use these loans when you are buying homes at 50 cents on the dollar and going to be able to do a "quick turn around" with a fast exit strategy on the property. Side Note: Obviously, there isn’t a bunch of people out there willing to just "hand over" their cash to you so you can invest it. You’ve got to be clear on whom you access for help and how to best use the help they give you. This is why having a solid network is important. A private lender, as I call them, doesn't "just appear" and magically trust you to make a smart investment. In my experience, these connections come from immersing yourself in your local real estate investment community, as well as from relationships that develop with seasoned real estate investor over a period of time. Partnerships are another popular way to get funding. These can work in a variety of ways, but you want to make sure that you balance each other out well. For example, if you have a less- than-stellar credit score, make sure your partner has a great one. Perhaps you can be the one to find the ideal properties and your partner can get the financing, which will come with lower fees and rates thanks to that higher score. Maybe a partnership can come from a long-term investor you connect with who just doesn't want to put in the extra time into another flip. You can do the grunt work, and learn from them at the same time! Keep in mind that you don’t want to partner with someone just because you already have a good relationship with them, or just because they have access to money. Partnerships can be great, but they can also turn sour quickly!! Tips on how to avoid a negative or sour partnership: In my opinion, a key to a fantastic partnership is being in sync,
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