In this third edition we’ll discuss more points to help you be the most successful investor you can be.

The role of a Financial Pro to help you further your investments is very important. There is a ton of different ways to finance an investment. Conventional bank financing is available but requires a minimum of 20 to 25% down plus closing costs. This type of financing also requires better than average credit and income to qualify. Whereas an owner occupied home would only require as little as 3.5% down and the credit does not have to be spotless to qualify.

You also may use unsecured lines of credit to invest. These credit lines do not require anything other than great credit to qualify. If I see a client’s credit report and I approve it, the client will have up to 100K in credit lines that they can spend in 30 days or less.

These are true credit lines in that when the funds are paid back the line balance goes to zero, the interest goes to zero and the funds are available to borrow again for the next deal. All credit lines come with zero percent interest for the first 6 to 12 months.

You can also borrow from a retirement account to finance an investment. Yours or someone else’s who are looking for a better than average return in today’s bank account interest challenged environment.

The Contractor is also a very important team member. The relationship with a General Contractor will most likely be like a marriage more than the other team members that you will need. If you’re an active investor your “GC” is the team member that you will find yourself spending the most personal time with on investing matters. If your find yourself in an unsatisfying relationship with him/her, then you will be spending more time, at greater expense, with your attorney and CPA.

If you choose an insurance agent, real estate agent or other professional wrong, your potential cash and time losses are limited compared to the losses that can mount up during a rehab project. You really must “vet” the contractors carefully before you hire one. Make sure you get references and call them. One of the best ways to find a contractor is to ask other investors, building inspectors, or the bid desks at lumber yards, Home Depot or Loews who the good ones are or equally important, who the contractors are to steer clear of.

Be on the lookout for the last installment next month where we’ll add the last element to your investing portfolio. Please contact with any questions.

Ray Antonelli **** 216 337 7520 Cell **** ray100@gmail.com