This topic is near and dear to my heart.
When I started my Real Estate career, I heard about the necessity of finding private lenders. In fact, I even found two. But then I stopped. For four years I PROCRASTINATED. I didn’t get it!!! For four years I continued to go to banks and jump through their hoops.
I also had used hard money lenders, but found them VERY expensive.
It wasn’t until I quit my J.O.B. and found that banks wouldn’t loan me money that I realized that I needed to bring private lenders into my life quickly.
When I took that step, everything changed for the better.
What are some of the advantages of using private money for your real estate investments? Well, if you haven’t decided whether or not to use private money, I decided to lay it on the line here for everyone to see.
– Fast & you can buy at a discount
– No credit check & doesn’t show up on your credit report
– Unlimited funds
– Control, you set the rules
– Help friends, family & meet a great group of people
– Get some of your profit when you buy
– Cash flow
– Can make offers with confidence
– Can structure quick and more profitable exit strategies
– Saves you money
– Cheaper than a partner
– Fund the purchase of defaulted paper
– It is the foundation for a very profitable brokerage business
In this business when a deal comes along you have to move fast. Many Real Estate investors have watched a deal slip through their hands while they waited for the bank to approve their loan. Once you have private money available, that won’t happen to you! You can make an offer knowing you can go ahead and set a closing date. Meanwhile, your competition is wondering how you did it so quickly!
Perhaps the most unexpected aspect of using private lenders is the accumulative response by satisfied lenders.
After my first seminar I got only a few responses, at first. Then came the steady, unending trickle of eager lenders. Today, that trickle is more like a river!
Maybe its the credibility of one investor to another, or the proof of anothers prosperity through investing, but word of mouth is so powerful that once youve established a few private lenders, youll have a continual revenue stream with which to invest.
A real estate guru told me, Theres plenty of capital out there. All you have to do is ask, and make people understand what youre using it for and how safe they are. Its really not difficult to get it. Simply educate lenders about the high rate of return available through your real estate investments, and watch them line up to give you money!
Incredible, I know.
But listen to this: here are a few of my recent deals, made possible only because I had the cash on hand to close these deals quickly.
Short Sale: $59,900 bank discounted to $25,000 = net $32,900
Rehab: $51,000 purchased for $15k plus $13k rehab = net $23,207
Subject to: $85,000 for $71,000 + $1,264 repairs = net $12,736
Wholesale: $28,000 purchased for $22,000 = net $6,000
Thats $74,843 in only four deals, and all because I had the confidence and flexibility of assured funds through private lenders.
Today I shake my head at the thought of it, but once upon a time I was practically begging for bank loans for the opportunity to wait in line, fill out applications, and wait weeks or even months to see if they would deem me and my prospective property a good risk.
I could have been using private lenders years earlier, but I hesitated. I lacked confidence and I wasnt sure where to start. If I could give one piece of advice to any budding investor it would be this: Start today.
Dont let even one more deal pass you by. You never know where life is going to take you. That one, 2 a.m. infomercial started me on this path, and today Im the one appearing in the infomercials, teaching people how to change their lives through real estate.
With private lenders in line, youre always equipped with the funds you need to grab each opportunity as it arises. Your confidence will soar and youll be making the kind of money of which youve always dreamed.
Private lending allowed me to finally take control of my destiny. Youll gain nothing by waiting. Discover the key to true freedom and big money in real estate investing. Private lenders are out there. Theyre waiting for you