Finding Private Money for Real Estate Investing - Expanded Circle

The first step to finding private money for real estate investing is to look at your own funds, like retirement and savings. Next, you want to find out if anyone in your family has funds they could loan you. I?ve already written articles on those two sources. Today, I want you to consider expanding your search radius.

A primary source of private money for real estate investing in my own experience has been friends, professional relationships, and casual contacts. These are the people you rub shoulders with day in and day out, and these are the people you should be prepared to talk to about real estate investing.

How can you prepare? Glad you asked.

These folks are the ones you will need to share your elevator speech with. What?s an elevator speech, you ask? I?ve have written another article entitled ?Private Money For Real Estate Investing ? Your Elevator Speech? that goes into great detail. You can find it elsewhere on this site? just look on my author page.

To recap, an elevator speech is a short, pithy explanation of your investing activities, as well as how and why you use private money for real estate investing. It?s not designed to tell them everything, only to give them a quick overview, and whet their appetite for more.

That?s why you also want to be prepared to close them on a follow-up appointment to share more information. Either a one-on-one, like a lunch, or a seminar setting will work. Either way, if possible you want to share your elevator speech, get them interested, and close the deal with an appointment to tell them more.

Who should you be looking for? Anyone and everyone you know and have regular contact with. Don?t pre-judge just because you think they have no money, or don?t believe they would be interested in loaning you private money for real estate investing.

Professionals like doctors, attorneys, and accountants often have money to loan, or know others who do. Ask for referrals. Don?t limit yourself to only professionals? your friends can be a good source of private money for real estate investing. People you see daily at the stores and businesses you frequent are also possibilities. In short, anyone you know and who knows you.

Starting the conversation is best accomplished with a question. ?You know Mike, I was wondering,? you say, ?have you ever considered getting involved in real estate investing?? This opens the door, now all you need to do is walk through it!

These are just a few ideas on finding private money for real estate investing. For much more try http://www.private-money-real-estate-investing.com.

Why Use Private Money For Real Estate Investing? Reason 1

I?ll never forget it? my Realtor phoned and breathlessly told me about a deal that was too good to pass up. He described the property and the price and I had to agree- it sounded like a fantastic opportunity. Sadly, I told him I had no ready cash, and my credit was already overextended. I would have to pass. I glumly hung up the phone.

This experience, several years ago, lead me to examine how I was financing my investment properties. Because I was tied in to using my own cash and conventional mortgages, I was severely limited in the number and kind of properties I could acquire. I decided then and there to begin learning all I could about private money for real estate investing.

I gradually began to develop a stable of private investors, partners really, who had money to loan and were ready to make it available to me at a moments notice. Since I started putting the principles of private money for real estate investing to work, I haven?t had to pass on a ?once in a lifetime? deal for financial reasons again.

A perfect example occurred a couple of weeks ago that illustrates what I?m talking about. Again, my realtor phoned and told me about a foreclosure listing he had. The bank had sold the property, but the deal had fallen through. These have always been great opportunities for me, and this was no exception. Thanks to the fact that I have access to plenty of private money for real estate investing, I knew just what to do.

With just a couple of phone calls, I had lined up the financing I needed to proceed with the deal, and I stand to make several thousand dollars on this property when I close on it at the end of the month.

That?s several thousand dollars I would have been forced to watch fly into the pocket of some other investor if I didn?t have ready access to a flexible source of cash, namely my private money lenders. I?ve got several who are friends now, and our deals are always win-win situations for all parties.

If you need another reason to start building a network of lenders who can provide you private money for real estate investing, this is one of the best.

Why Use Private Money For Real Estate Investing? Limited Hassles and Paperwork!

The last time I went through the traditional mortgage application process I thought I would choke on the paperwork. The number of phone calls and faxes involved was ludicrous. I thought to myself ?There must be a better way.? The good news? there IS a better way, and it?s called private money for real estate investing.

When you initiate the process of applying for mortgage financing, you had best realize that you are unleashing a blizzard? a blizzard of forms, applications, faxes and phone calls back and forth with the lender. If you would prefer not spending countless hours in front of the copier, or with the phone receiver glued to your head, then consider the alternative of private money for real estate investing.

By developing a system of finding and using private money for real estate investing, you will enjoy the benefit of greatly reduced hassle and paperwork. The last private money loan I closed on involved exactly three phone calls and one meeting with my lender to sign a simple note. In fact, we had an enjoyable lunch together, so even that part was completely painless.

The simple fact is that when you develop your own group of lenders, all of whom stand ready to provide you with private money for real estate investing, you are creating freedom for yourself? freedom from the mind-numbing experience of applying for loans, proving you make what you say you make, apologizing for past credit mistakes, explaining gaps in employment, and begging for special dispensation.

Talk about a de-humanizing experience. Why would anyone willingly subject themselves to that, when there is a much better alternative?

The alternative is to apply just a little bit of effort and develop a group of consistent, loyal lenders to partner with. The great news is that when you make a decision to find and use private money for real estate investing there is a wealth of information available to you.

To start your research on finding and using private money for real estate investing try http://www.private-money-real-estate-investing.com.

Now, go make more offers!

Finding Private Money for Real Estate Investing - Expanded Circle

The first step to finding private money for real estate investing is to look at your own funds, like retirement and savings. Next, you want to find out if anyone in your family has funds they could loan you. I?ve already written articles on those two sources. Today, I want you to consider expanding your search radius.

A primary source of private money for real estate investing in my own experience has been friends, professional relationships, and casual contacts. These are the people you rub shoulders with day in and day out, and these are the people you should be prepared to talk to about real estate investing.

How can you prepare? Glad you asked.

These folks are the ones you will need to share your elevator speech with. What?s an elevator speech, you ask? I?ve have written another article entitled ?Private Money For Real Estate Investing ? Your Elevator Speech? that goes into great detail. You can find it elsewhere on this site? just look on my author page.

To recap, an elevator speech is a short, pithy explanation of your investing activities, as well as how and why you use private money for real estate investing. It?s not designed to tell them everything, only to give them a quick overview, and whet their appetite for more.

That?s why you also want to be prepared to close them on a follow-up appointment to share more information. Either a one-on-one, like a lunch, or a seminar setting will work. Either way, if possible you want to share your elevator speech, get them interested, and close the deal with an appointment to tell them more.

Who should you be looking for? Anyone and everyone you know and have regular contact with. Don?t pre-judge just because you think they have no money, or don?t believe they would be interested in loaning you private money for real estate investing.

Professionals like doctors, attorneys, and accountants often have money to loan, or know others who do. Ask for referrals. Don?t limit yourself to only professionals? your friends can be a good source of private money for real estate investing. People you see daily at the stores and businesses you frequent are also possibilities. In short, anyone you know and who knows you.

Starting the conversation is best accomplished with a question. ?You know Mike, I was wondering,? you say, ?have you ever considered getting involved in real estate investing?? This opens the door, now all you need to do is walk through it!

These are just a few ideas on finding private money for real estate investing. For much more try http://www.private-money-real-estate-investing.com.

Real Estate Investing: Hard Money Loans

People sometimes need more money than they had anticipated while dealing in real estate and that is when hard money lenders are needed the most. Hard moneylenders are private moneylenders who lend money for short terms with low loan to values and strict repayment schedules.

This type of a loan is called hard money loan because of its strict terms, higher than market interest rates and they usually take between 3 to 10 points as upfront fees. Hard moneylenders give investors access to asset-based capital, where the loan is secured by adequate collateral. The interest rate varies between 14% to 18% interest only annually and the loan term is usually 6 to 12 months.

Criterion to Secure Hard Money Loans:

The lenders look at the collateral, they need proofs, such as, tax returns and bank statements, and they make appraisals and inspect the property before granting the loan. The hard money lenders will study the investment intent, the exit strategy adopted, the property information provided such as the kind of property commercial or residential, and check the credit profile of the borrower, his financial strengths etc. the fee they charge depends on the risk factor and the nature of the deal. They will also study how the investor plans to use the borrowed money, so the investor has to present them with a good business plan in order to convince them they are low risk investments.

The terms and conditions vary from lender to lender and it is essential for an investor to find and maintain good relationship with a reputed hard moneylender in his area. Hard money loans are useful while purchasing or procuring a property or if a buyer lacks finances but has a good sizeable fixed income, then the seller would like to recommend a hard moneylender of repute to finance the buyer.

Hard moneylenders can be choosy as to which area of real estate investing such as purchasing a house, rehabbing a house, lease purchase options etc. they will lend money to. Investors have to understand the importance of maintaining good relationship with the hard moneylenders, as hard money loans will be essential for investing in real estate. It would be too hard to lose a great deal because you lacked the finances, with hard moneylender?s support that can never happen to an earnest investor. Some hard moneylenders give a pre-qualification letter that will help close deals faster as your assuring the other party that you can finance the deal.

Investors go for hard money loans as they are approved faster, making it possible to close deals faster too, unlike a conventional bank loan. The investor has to make sure to see how strict the pre-payment penalties are.

There are firms that offer their services and products to run businesses efficiently and hassle free.

Why Use Private Money For Real Estate Investing? Reason 1

I?ll never forget it? my Realtor phoned and breathlessly told me about a deal that was too good to pass up. He described the property and the price and I had to agree- it sounded like a fantastic opportunity. Sadly, I told him I had no ready cash, and my credit was already overextended. I would have to pass. I glumly hung up the phone.

This experience, several years ago, lead me to examine how I was financing my investment properties. Because I was tied in to using my own cash and conventional mortgages, I was severely limited in the number and kind of properties I could acquire. I decided then and there to begin learning all I could about private money for real estate investing.

I gradually began to develop a stable of private investors, partners really, who had money to loan and were ready to make it available to me at a moments notice. Since I started putting the principles of private money for real estate investing to work, I haven?t had to pass on a ?once in a lifetime? deal for financial reasons again.

A perfect example occurred a couple of weeks ago that illustrates what I?m talking about. Again, my realtor phoned and told me about a foreclosure listing he had. The bank had sold the property, but the deal had fallen through. These have always been great opportunities for me, and this was no exception. Thanks to the fact that I have access to plenty of private money for real estate investing, I knew just what to do.

With just a couple of phone calls, I had lined up the financing I needed to proceed with the deal, and I stand to make several thousand dollars on this property when I close on it at the end of the month.

That?s several thousand dollars I would have been forced to watch fly into the pocket of some other investor if I didn?t have ready access to a flexible source of cash, namely my private money lenders. I?ve got several who are friends now, and our deals are always win-win situations for all parties.

If you need another reason to start building a network of lenders who can provide you private money for real estate investing, this is one of the best.