A Rehabber and Real Estate Investor,
Uses Private Investor Funding, and More...

Make Money and Enjoy the Experience.

Private Investor Funding, Rehabber Style...

Private Investor Funding, Mortgages, Lines of Credit, and Seller Financing, is using other people's money to make money for our self or our businesses.

We use borrowed money to find profitable real estate deals. Add value to the property with quality workmanship, then...

Provide a high standard of service for your buyers and renters, offer fair pricing to earn a fair profit, is a Win / Win

Would financing from a private investor help you get started?

Regardless of your current bank financing qualification, rent to own from a private investor may be an option to consider! Seller financing on a Land Contact or Partnering with Family, Relatives, and Friends are examples on using private investor funding for the level of DIY-Home-Rehabbing Projects here on Ask-The-Rehabber.com

Do You Have Money To Lend?

If you have money to loan and would like earn better returns on your investments...

You can offer Private Investor Funding to your local Rehabber!

Some Advantages:

  • You can use your IRA money while maintaining the investment property within your IRA without penalty.
  • Work with a Rehabber; a person you know, on a property you can see, and have a direct effect on the returns of your investments.
  • Private investor funding for local properties in your neighborhood is great for your local economy:
  1. Commerce for the local businesses,
  2. Work for your local rehabber and trades people,
  3. While adding value to your local properties in your town.

Why give your money to strangers?

Why invest in Wall Street with people you don't know?

  • Brokers and Fund Managers you've never met,
  • Who invest in companies you've never been to,
  • Where it's perfectly acceptable to put your money at risk - for their personal gain.

Worse yet, if Wall Street looses all your investment, there is no recourse!


Wall Street may be good over time. Real Estate is proven over thousands of years!

Private investor funding with your local rehabber is investing in Real Estate with a person you know, personally!

(Disclaimer: use your Attorney, CPA, Financial Planner, and consult with other industry related professionals at the Title Company, Board of Realtors, and City building officials.)

Lend Money With A Land Contract

To Start: Get Qualified!

To get Private Investor Funding, a Rehabber MUST BE QUALIFIED in many ways:

An acceptable Credit Score rating,
Skill and Experience for what we want to borrow the money for...

Or at least,

A Business Plan about how much money you want to borrow, the intended use for the money, show the ability to pay back the loan with interest on a specified time schedule and...
MOST IMPORTANTLY - Identify our Profits...
Do all of the above to Avoid Losses

PLANNING IN ADVANCE - - versus - - Planning after we buy!

I'm a lot like you when it comes to money...

I've dealt with the Frustrations:

Looking for Private Investor Funding for my rehab projects. Money for tools and construction materials, for mortgage payments, for a helper, for taxes and insurance, plus the carrying costs of property taxes, insurance, utilities, gas for truck, and even pocket money for lunch...

SURPRIZE... Unforeseen Costs! Investing in Real Estate is very exciting as much as being a Rehabber is extremely enjoyable (for me). However, without proper planning known as "Due Diligence", the slightest oversight can turn a once thought profitable fix-and-flip into a loosing proposition.

In some cases private investor funding is more flexible than strict bank mortgages!

A Rehabber needs 100's of 1,000's of dollars to work with! If you'd like see the answer to a question I received, 

"Joe, if your such a Great Rehabber, why are you spending time with a website?"

Answer: Multiple streams of income!

A web business Creates Money so I can Fund My Rehabbing Projects

PERSONAL MORTGAGE... The Quick and Risky Way!

Perhaps this is the easy and fastest way if you have 20% - 30% down payment. If all goes well it works up to a point, rather it used to... Changes in the Personal mortgage industry are better suited for your primary residence and no longer the best option for a Real Estate Investor or Rehabber as a Business!

Private Investor Funding for the Rehabber makes more sense, however...

Let's not rule a Personal Mortgage out completely. A properly structured home equity loan can still be used creatively without putting it all at risk.

COMMERCIAL LOANS are just plain good business when you qualify.

5-Units or more, using a business entity like an LLC or Corporation, a good credit score, experience in your trade, and of course a personal guarantee is about what it takes to get an 80% loan to value commercial loan.

THIS IS IMPORTANT! Congratulations if you're at this level already! If you're not, this is the TARGET shoot for as a real estate investor and rehabber if you want to do more than one rehab project and build your investor portfolio leading to financial freedom and build wealth.

Private investor funding is a great way to build up your Rehabber Portfolio until you qualify for commercial loans!


Private Investor Funding; Money that comes from a single private investor loaning us money, are usually limited in the amount they have to loan, however...

Lining up several Private Lenders, over time, by building relationships, is a consideration not to overlook.

If you don't start with a private lender, as you Grow Your Business you will eventually partner with a private lender in one fashion or another.

LOVE or BUSINESS? Private investor funding comes in a variety of formats.

The easiest method of course is love from a family member wanting to help us without qualification in hope of success. Some times that works and many times it doesn't!

BUSINESS is Business and the terms get tough when it comes to a private individual loaning you money for a real estate investment. Yet it is a great WIN / WIN proposition, with better than average returns for the private lender, and expanded opportunities for the Rehabber.

More about Hard Money Lenders


Sellers who are willing to sell their properties and carry the financing for you is an instant loan from a very motivated seller. The motivation for the seller to offer financing is they can't sell their property outright with the exception of the astute seller looking to collect the interest payment over time as a vehicle of their own investment portfolio.

"You Give Me Price - and - I'll Give You Terms" 
"You Give Me Terms - and - I'll Give You Price".

Here is the opportunity to acquire a property from a ready and willing seller, with very little money exchanging hands. The seller takes a contract instead of money, 

The property is sold without borrowing the full purchase price from a lender to give to the seller.

Another WIN / WIN!

In this case the seller offers private investor funding via a land contract to the rehabber!

More About Seller Financing

Create Money. The Golden Rule.

We are so much alike when it come to money! We all want more of it!

The WEALTHY FOLKS aren't going to bother reading this, so I'm talking to you... 
By the way I'm not a big-money-man and my proof is that I'm a Rehabber; a worker, skilled tradesman, a craftsman that likes to get my hands dirty and do the work, I love it, and I'm proud of it!!!
[Note: Freedom from the employer versus being rich is my goal]

There is a Rule of Success that goes,” If It's Physical Work, You'll Never Get Rich" and that may be true however...

I believe, "Physical Work Can Set You Free". 

What I mean by that is; the physical work that I do, pays me enough to be financial independent, from having to depend on a job that controls my life, giving me the freedom I enjoy, while still being productive without an employer. More about that later...

Back to CREATING MONEY...Versus earning money...
The best source of money to invest in real estate is to Create Money to invest in real estate! That's the best advantage to Build Wealth versus Private Investor Funding.

A lot of us have it all BACKWARDS (as I did for decades). We use our own money or borrow money to invest in real estate and the lenders make the most money in many cases. 

When we create money, such as profits from our own business, then invest our profits in real estate, the formula for building WEALTH AND PROFITS increasingly becomes in our favor...

Create Money - There's more than one way...


Each private investor funding method has it's purpose. Hard money lenders are great for a short term loan for a few months, not years! The cost of the loan is higher in every respect; higher interest, points up front, percentage of profits, liens on the investment property and in some cases they want liens on your principal residence.

The advantage is having ready and available money to move quickly, on a deal with high profit margins, without having to wait for traditional financing.

It's all about relationships in business. Getting to know people over time and they getting to know you, building trust, being helpful, showing off your work, so when opportunities arise - we come together - and make it happen.


OK, there is a lot of information here! 
Not all of this applies to you at one time. 
Rehabbing a property or flipping a house takes time! 
Focus on one property at a time when you're working alone as a rehabber,
Choose one or two financing methods for that one property. 
Learn as you grow. There's no rush! 
There is always a deal of the decade waiting for you when you're ready!

Example: I have purchased properties in the last 4-decades and every time a great deal. 

There is no rush where you have to take risks when borrowing money, for fear of losing a deal! 

Arrange the (affordable) money up front first, then go find your deal. And you don't have to look far, it's close to home!


Real estate guru programs (and I have many), sell programs by telling us we can get unsecured lines of credit. Let me clear the air for you about this...

They're talking about Credit Cards; a line of credit that is not secured by a lien on a property - period! 

You still have to personally guarantee the line of credit, the interest rates are higher, the penalties are stiff, and it is in fact SECURED BY YOUR CREDIT SCORE. 

Miss one payment and your CREDIT SCORE GOES DOWN! That is not unsecured!

Large amounts on your personal credit cards are risky.

Using credit cards and lines of credit in your Business Name (with a separate entity like an LLC or Corporation) doesn’t show up on your personal credit report.

Thus the debt to loan ratio on our personal credit score will not be affected by our business loans.

This is an important strategy when building a real estate portfolio.

No Money Down Real Estate - Still Works Today - Even In This Market!

It's a smart choice for a Rehabber to use Private Investor Funding...

Proper planning and strategy still allow for a No Money Down Real Estate transaction. We just have to define what no money down really means!

Technically we're looking for, "No Personal Money Out of Our Pocket". Simply put, it is 100% financing. 

If you borrow the money for the down payment and get a loan for the rest, you just bought a property for no-money-down!

Private Investor Funding combined with Seller Financing for example; the seller of the property offers a contract instead of getting a mortgage (you pay the seller monthly payments)... 

Borrow the down payment and fix up money from a private lender, and or use your business credit card...

Note: The fix-up is to make all the necessary repairs and updates so the home qualifies for new bank financing. 

Your new buyer then gets the new mortgage to pay off your loans, plus Profit for you!

When too many repairs are needed on the property to qualify for a mortgage; This scenario is perfect for the Rehabber, the Seller, and the Private Investor.

I've bought several properties this way.

Planning and the timing...

Explore all the options and strategies NOT to use your own personal money.

Keep in mind: There is Always Money Used in the Exchange of a piece of property! It just doesn't have to be your own.

Where would you like to go from here...

Top of this page: Private Investor Funding

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