Money & Funding Source Guide

One of the most common questions in real estate investing is:
“Where do I get the money for my deals?”

The truth is, there isn’t just one way—there are many. In fact, successful investors rarely rely on a single source of funding. Instead, they learn how to mix and match different strategies depending on the deal, their resources, and their goals.

To make this simple, remember the acronym SHIPPS:

S – Seller Financing

Let the seller be the bank! Instead of paying off their property at closing, you negotiate terms directly with the seller—often with little to no money down. Great for creative investors and deals that don’t fit traditional lending criteria.

H – Hard Money

Short-term loans from asset-based lenders designed for flips and fast closings. Hard money is quick and flexible but comes with higher interest rates and fees. Perfect for time-sensitive deals or when a property needs significant repairs.

I – Institutional Financing

Traditional loans from banks, credit unions, or mortgage companies. Best for long-term holds, rentals, or when you want the lowest rates and are okay with more paperwork and qualification requirements.

P – Partnerships

Team up! Partnerships allow you to combine resources—maybe you bring the deal, and someone else brings the cash (or credit). The key is structuring win-win agreements that outline roles, responsibilities, and profit splits clearly.

P – Private Money

Funding from individuals (friends, family, or other investors) who want better returns than they’d get from a bank. Terms are flexible, and relationships matter most. Build trust and offer fair returns to create a steady funding source for future deals.

S – Subject-To

Acquire properties “subject to” the existing financing—meaning you take over payments on the seller’s current loan without formally assuming it. A powerful strategy for low-cash acquisitions when done ethically and with proper documentation.

Why This Matters

The more funding strategies you understand, the more deals you can do—and the less likely you are to miss out on opportunities. Don’t let lack of money be your excuse. Master these strategies and build your own funding toolbox.