We all know real estate is a great investment, So why doesn't everyone do it? Many people never get started because they can not figure out how to fund their first deal. Also, trying to find funding for your first real estate deal can be very intimidating and difficult. Through our experience, we have figured out many creative methods for funding deals.

Method 1: HELOC (home equity line of credit)

Many people finance their home and pay into their mortgage for years and years building up equity. Most people will never see that equity perform for them. Taking out a HELOC is a great way to start funding your deals. Basically, the bank will have your house appraised and lend you the difference between the value and how much you owe the bank.

Example: You owe $100,000 on your mortgage; your house appraised at $150,000; the bank will lend you between 80-100% of the $50,000 difference. The great part about using a HELOC is that you do not start paying interest until you actually spend the money. This is why I prefer the HELOC over a home equity loan which forces you to pay interest as soon as you receive the funds.

Method 2: Private money lender

Believe it or not some people make a living lending money to other people. This is known as private money lending. Finding someone with capital could be as easy as asking a relative or friend. There are also many services and databases online for private money. These lenders work just like a bank where they lend you money based on the value of the home.

Method 3: Hard money lender

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by property. Hard money loans are typically issued by private investors or companies. Hard money loans are typically have higher interest rates and shorter terms. Click for hard money.

Method 4: Business Credit Cards

Business credit cards. If you’ve got decent personal credit, 0% interest business credit cards are an incredible way to purchase your next investment. There are companies such as Fund & Grow that help you apply and get the most bang for your buck when applying for business credit cards.

Method 5: 401k

401k. If you have a 401k through your employer, most plans allow you to take out one loan per year. This is a fantastic strategy, because you’re in essence, paying the interest back to yourself.

-Ryan Greenberg