
Hans dives into funding subject-to deals with private money, addressing cash needs for seller payments, closing costs, or agent fees when upfront capital is required. He outlines three strategies: 1) Short-term gap funding (3-6 months, interest-only), e.g., borrowing $20,000, repaid with $2,000 interest upon receiving a $25,000 option fee or down payment, ideal for quick lease option or seller-financed exits. 2) Mid-term lending (3-7 years, amortized), e.g., borrowing $30,000, repaying $15,000 from a down payment, and amortizing the remaining $15,000 at 18% over 5 years with monthly principal and interest payments, suitable when full repayment takes longer. 3) Long-term equity partnerships, where an investor buys into a trust (e.g., $25,000 for 25% ownership), sharing profits, losses, depreciation, and appreciation, offering high returns (e.g., 25% cash-on-cash, ~$208/month for $10,000 invested). Hans emphasizes building a network of lenders or partners (family, friends, coworkers) and tailoring the funding model to your exit strategy (rental vs. quick sale). Curious about private money lending? Share your thoughts!
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