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.

How Does Real Estate Investing Work - Make The Calls

Another in a continuing series that answers the question - ?How Does Real Estate Investing Work?? - for beginning real estate investors, and experienced investors who want to hone their skills. Today, I?ll give you an overview on making targeted calls to sellers and other investors.

When you?re ready to stop asking the question, ?How Does Real Estate Investing Work??, and dig in and get busy, one of the most productive things you can do is pick up the phone and make calls. You?ll learn more in a few days just talking to sellers, buyers, and other investors than you would in a whole semester at college.

Unfortunately, the thought of picking up the phone and making calls gets some people all sweaty and nervous. Face it, if you?re one of those people you have a choice? you can sit in a chair and continue asking anyone who will listen, ?How Does Real Estate Investing Work??, or you can face your fears and overcome them. Only one thing has been proven to work consistently for overcoming these kinds of fears.

Action.

If you?ve decided to stop asking, ?How Does Real Estate Investing Work?? and make some calls, you probably have two questions that need answering. First, who should you call? Second, what should you say when they answer? I can give you some tips.

Who to call

The answer to ?How Does Real Estate Investing Work?? can be summed up in this statement: ?People make it work.? If you?re willing to engage, network, and get involved with people, you can be ultra-successful. If not, you may as well become a financial analyst in a cubicle someplace. Real estate investing probably won?t work for you.

The answer to who to call is in the classified section of your paper every week, perhaps every day. Here?s a partial list of people you should be calling and talking to: For Sale By Owner (FSBO), We Buy Houses (other investors), Property Wanted (buyers), Realtors, (especially those focused on investment property and foreclosures), Estate Sales (auctions, etc.). You want to answer the question, ?How Does Real Estate Investing Work?? These folks can help you find out.

But you need to talk to them. Go ahead, they won?t mind? that?s why they put the ad in the paper in the first place.

What to say

This is the one that freezes some people up. If you?re one of them, you may be wondering, ?What will I say??

Really, this one is super easy, because you learned what to say when you were about 2 years old. You may not remember, but I?ll bet your parents do! ?Daddy, what?s this? Mommy, why? Daddy, why does that lady have a moustache? Mommy, why is that man so fat??

Ring any bells? It?s questions that helped you learn about the world when you were two, and not much has changed. Questions will help you learn, ?How Does Real Estate Investing Work??

So, once you get folks on the phone, ask them questions. Then, be quiet and let them answer you. They will answer you, I promise. Most folks love to tell their story. All you need to do is get them started and stand back. Each person you call will give you a little piece of the answer to, ?How Does Real Estate Investing Work??

More on what questions to ask in my next article. For now, here?s more information on Beginning Real Estate Investing

Now, go make more offers!

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