Which funding type should I choose?

Which funding type should I choose?

You’ve got a deal and you’re ready to get some cash – GREAT! We’ve got a few options to choose from, so let’s break it down.

Transactional Funding

First up, we’ve got Transactional Funding. If you’ve already got a buyer for your property and you plan on repaying the capital within three business days, this could be the way to go. Fees are low, but be careful – if you don’t repay on time, you could end up with some hefty late fees – think $100/day or more!

Sell a Note

If you’re collecting regular payments from the buyer of your property, you’ll probably want to Sell a Note. This way you can get the cash you need at the closing table or beyond to do whatever it is you need to do. Just click the link and we’ll help you find a buyer.

Private Loans

Next, we’ve got Private Loans. If you can make regular payments on your capital, this could be a great option. But remember, if your project fails or you don’t earn what you expect, you still gotta pay that lender back in full. And if you don’t make those payments, get ready for some higher interest rates.

If you’re not into making payments, you could still go for a Private Loan where interest accrues until you pay back the full loan and accrued interest at the end. Just be aware that your lender may add that accrued interest to your unpaid balance, compounding your debt over time.

Equity Partnership

Lastly, we’ve got Equity Partnerships. This is a good option if you’re willing to give up a percentage of your profits on the exit. But make sure you’ve got a good partner who can help with aspects of your project and is willing to share in the risk and reward (or failure) of the project. It’s a good idea to have a lawyer draft an agreement so if things get rough, all partners are ready to deal with the outcome.

So there you have it, folks. Consider your options and choose wisely.

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