How to Leverage Other People’s Money to Purchase Real Estate in Columbus, Ohio

Using other people’s money to invest in real estate in Columbus can significantly expand your investment opportunities and enable you to acquire more properties than you could normally afford on your own. If you’re beginning your real estate journey with limited capital, several of the following financing options below can help you leverage other people’s money to purchase properties in Columbus, Ohio at scale. Keep in mind that this article is for informational purposes and should not be considered financial or legal advice. Always consult with a professional regarding your specific situation. 


Securing a loan is a popular method for using other people’s money to purchase real estate in Columbus, Ohio. The main types of loans available to investors are government-backed, conventional, and private loans. To make the most of these offers, you need to compare the interest rates, fees, and repayment terms of each loan type. I would recommend reaching out to a local mortgage broker to explore current financing options because financing is changing each day with the volatility of the markets.Each loan type has specific requirements, such as a minimum credit score, a certain level of assets, a reliable income, or for many investors, rent vs expense ratio in the case of DSCR loans. Additionally, you’ll need to have some savings for a down payment. Right now, many lenders are cutting back on their exposure to commercial real estate, so the terms are probably going to be unfavorable to most real estate investors. This is true for both purchases and refinances. The solution for loans with high interest rates is to buy the house at a larger discount than you have been accustomed to doing in 2020 and 2021. Remember, real estate is a highly leveraged product, so when interest rates go down, the prices go up – and this also works in reverse when interest rates go up.


Forming a partnership with like-minded investors can help you pool financial resources, leverage the expertise of others, and share the investment risk. By working together towards a common goal and strategy, you can effectively use other people’s money to invest in Columbus, Ohio real estate. 

To build a successful partnership, consider the following factors:

  • Establish a clear agreement on how disputes will be handled and put everything in writing.
  • Maintain open and transparent communication.
  • Be honest about any shortcomings or mistakes.
  • Learn about your partners’ goals, visions, experiences, reputations, work ethics, and financial backgrounds to ensure a good fit.

That being said, many partnerships wind up failing due to lack of a common goal, vision or differing opinions on how the business should be operated. It’s good to work with a local business attorney on how to setup the business from the beginning because they will ask the questions that you and your partners might not have even thought to ask.

Seller Financing

Seller financing is an excellent option for investors who cannot secure other types of loans due to credit issues or other financial constraints. This method allows you to use the seller’s money to purchase the property while they retain ownership until the loan is fully repaid.

Sellers who offer financing are often more flexible with loan terms, making it easier for buyers to reach an agreement. However, it is crucial to carefully consider the terms and have a professional review any financial agreements before signing. Also, it might be a harder sell for many homeowners to let you take over payments because they are essentially landlords now whereas many home sellers don’t want to deal with tenants and some of the intricacies of complex agreements like these.

Hard Money Loans

Hard money loans are short-term loans provided by private lenders or companies to investors who need or prefer using other people’s money for real estate purchases in Columbus, Ohio. These loans are generally more accessible to borrowers with credit issues or those looking to buy properties requiring extensive repairs. With hard money you’re able to buy houses at a steeper discount because the house might not have qualified for other types of financing. This gives you, the buyer, access to more equity to work with.

However, hard money loans come with higher interest rates, fees, and risk, as well as shorter repayment periods and larger monthly payments. Additionally, these loans may not be subject to the same consumer protections and regulations as conventional loans. If you encounter difficulties repaying the loan, the lender may foreclose on the property.

The professional buyers at CMJones Homes can provide valuable insights and guidance on leveraging other people’s money to invest in Columbus, Ohio real estate. They are more than willing to address your concerns and help you overcome any obstacles you may face, all without any obligation. As experienced local experts, they are committed to assisting you in your real estate journey. Don’t hesitate to inquire about their current inventory of the best available properties in Columbus, Ohio.

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