Posts Tagged ‘private money lenders’

Easy Way To Approach Private Money Lenders For Real Estate Investing

Thursday, June 2nd, 2011

 Access to unlimited private money is essential to success in real estate investing business.   Once you have private money, you can finance as many deals as you can find with little or no limitations.

It follows that you must approach potential private money investors and convince them to lend you their money for your deals.  This is where most real estate investors get nervous.

This article covers how to approach potential private money lenders and sell your ideas to them.

 As soon as you identify potential people with money to invest, you then convince them to invest in your deals.  This means that whenever you get new deals, you will be presenting them to your private money investors for funding.

 Lots of real estate investors first look for deals before they can approach potential private money investors.   Although this could be a safer approach, you stand the chance to lose the deals before they can get funded.  You might also have to leave out lots of good deals untouched.

Also, if you are using a broker to help you find deals, they are unlikely to spend their time working for you unless they know you have the money to make the deals happen.   They will be comfortable to work for you once they know you have the money.

 You are therefore in a better position if you can approach them before you get the deals.

This method is more aggressive but gets you better results.

Some prior preparation is necessary in order to convince potential private money investors:

1) Get a private money investors website
 Start with this as the first thing you do.  Even though you will talk to all your private money investors, you need them to learn about you as much as possible.

 A good private money investor website will help break the ice for you and tell them your story before you talk to them.   By the time you talk to them, you will be done with basics and discuss deals you may have for funding.

 You can also present the deals you have on your website.  We recommend a good website at the end of this article.

2) Draft a convincing sales letter
 If you have already identified potential private money investors, contacting them will be the next step.   This part can be tricky.

 When you send them a letter, it must provoke their interest with a strong call to action without being aggressive.

For this reason, you need to spend some time drafting a good sales letter.  Once to two pages is enough without being aggressive.

 Be sure to provide your website address and full contact information to make it easier to contact you.   You can also follow up with them with a phone call after a few days.  They will most like already know about you by the time you talk to them.

3) Present your deals
 The next step will be to present your deals for funding once you have them ready.

 As long as they look attractive to them, you are funded!

Successful real estate investors need to have a ready source of private money to finance their deals whenever they need to. A real estate website that targets private money investors and convinces them to invest in your deals is therefore necessary for your business. Find out how a private money investor website can super charge your real estate investing business.

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Why you need private money for real estate investing

Sunday, April 10th, 2011

In order to drive your real estate investing business to the next level of success, it is necessary to do most if not all, good deals that come your way.

This is made possible by having a ready supply of cash you can use whenever you need it.

This article looks at why you need private money to finance your real estate investing deals as opposed to other types of financing.

In the current downward real estate market, most lenders have tightened their lending underwriting requirements.  Currently, you need a good credit and verifiable income to qualify for a mortgage.

If you are self employed, such as real estate investors, chances are you cannot qualify for traditional financing by getting a mortgage to do your deals.

For those who can qualify for a mortgage, you can only do a few deals financed through banks. As a real estate investor, you must be able to do any type of deals without limitations to succeed in the business.

And even if you can qualify for a mortgage, there are lots of deals you cannot do if they do not meet the lender’s requirements.

Nowadays, a lot of hard money lenders have also tightened their lending requirements, with some having some credit score requirements to lend money.

This means that your real estate investing business is limited by financing more than ever before.

Private money solves this problem because it removes most of the hassles imposed by other means of financing real estate investing deals.

Once you have located a good source of private money, the sky is the limit.

First, you are the one who determines which deals to do and which ones not to do. If the numbers make sense to you, then the deal is as good as done. If you like it, chances are that you can have it funded by your private money lenders.

For example, you can do deals that involve buying properties subject to the existing mortgage, such as lease to own or rent to own. Such deals cannot be financed through a traditional mortgage or hard money lenders.

This means that deals that are out of reach to other real estate investors are within your reach.

Secondly, some deals require speed to make them happen. If you already have private money investors lined up, you can have your deals funded within a few days. A house going through foreclosure may be out of reach when you have to go through hoops to get financing. With private money, you can close any deal with the speed required to make it happen.

Thirdly, private money is cheap. Even though private money investors get a higher return on their investment than traditional lending, the cost of getting private money is still less than hard money, or seeking a partner.

To sum it up, with private money, you have a cheap source of ready cash available to finance most, if not all, of your estate investing deals at a short notice.

Successful real estate investing must be driven by a ready supply of private cash available from private money lenders. Targeting these lenders requires that you convince them that their money is safely invested in your deals. Learn how you can attract investing cash through a private money website.

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How To Attract Unlimited Real Estate Investing Cash From Private Money Investors

Wednesday, April 7th, 2010

Ability to attract private money from investors and lenders is a critical factor in the success of a real estate investing business.  With a ready supply of cheap money available even on short notice, you can close any deals necessary for the success of any real estate investing business. With private money the deals you like are funded, even with time constraints.  Here is how to attract unlimited cash for your real estate investing business.

By providing a website explicitly designed to attract and persuade private money lenders and potential investors that your business is the best to invest their money in is therefore mandatory.

But you must have the correct private money investor website in order to achieve this goal a website that is uncomplicated, professionally designed and laid out, and most importantly, one that leaves no doubt in potential private money investors’ minds that you are the best person they can invest their money with.

Identifying such a website is therefore vital. First, why should you have private money??

1) Does it make sense to you? It is funded!

Can you utilize standard funding for a deal with creative financing (such as taking over payments)? Even deals that can net you $100,000? Very fanciful!

No lender will lend you money unless it is a straight standard purchase; at least I do not know even one.

With a ready source of private money you can turn to in at a moment’s notice, you may transact all the real estate deals you can get; if you like it, you got it.

2) Close more transactions

With private money, you call the shots. Therefore you can do deals that other real estate investors would never carry out simply because you have money waiting from your private money lenders.

With private money  you can close on real estate deals any time, even with time limitations. Regular financial institutions generally take at least 30 days to fund a deal, and come with tons of under-writing conditions.

Hard money lenders lend only on real estate transactions under certain conditions (like 70% minus repairs) . Not one of the above conditions will appear in private money real estate loans.

3) Private money is less costly

Hard money loans normally cost about 16% interest or even more, often with points added. Ordinary lenders may not transact with you on deals that are not  traditional.

4) You need not risk your personal funds

Hard money sources demand  the first month  interest as well as additional points before. Hard money lenders will not advance rehab funds, so you need a good bank balance even for a small real estate deal.

Conservative lenders will ask for counterpart funds from you, most times about 10%-20% . Private money does not have those preconditions.

Real estate investor websites for attracting  private money

With a professional real estate investing private money lender website presenting you as a successful real estate investor, private money investors can trust you with their money. As a result, you can tap private money resources to finance your real estate deals others can only wish for.

With a professionally designed private money lender website purposely made to appeal to private money sources, you can interest them to fund your deals. You would, as a matter of course, will not desire to look careless especially to your prospective investors who will back up your business.

The private money lender web site should project you as an accomplished investor who is a leader in the real estate investing business. Your projected image should not leave any reservation in the private money sources’ minds that you can be trusted with their funds.

The content of the private money investor website should be professionally written to persuade private money lenders that you are the best real estate investor for their investment. It should also be fully optimized for search engines.

Choosing the appropriate private money lender  website to achieve this goal is thus a critical component of your real estate investing business.

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Why private money is important in real estate investing

Sunday, January 24th, 2010

With the economic meltdown and tighter lending regulations, real estate investors are finding themselves with less and less money to do business. Both traditional mortgages and hard money are no longer so easy to get, making private money lending the easiest option to finance your real estate investing deals.

Private money is  the type of mortgage obtained from private individuals who have money to invest and are looking for higher returns than they can get in traditional investments such as banks or CDs. The investment is usually secured by the real estate property being purchased and not you as the borrower.

So why is private money the way to go in real estate investing?

1) No credit restrictions

The credit of the borrower does not arise in private money lending – the investment is secured by real estate. The terms and conditions of the loan depend on you and the lender

2) Easier and faster to obtain

It is easier to get a private money loan than it is to get a traditional mortgage or hard money. There are no tough under-writing procedures, and in most cases, the lender is the only under-writer. As such, you can have the money in a few days.

As long as the real estate investment makes sense to the private money lender, your deal will be funded. If it will make enough residual income to make interest payments and it secured by a real estate property worth more than the money invested in it, your deals will most likely get funded.

3) Less expensive

Private money is much less expensive than a business partner. While most partnership transactions will be split 50/50, private money lenders will ask for 8% to 15%. There are no points or origination fees that you get in hard money.

4) Few restrictions

No traditional or hard money lender will lend you their money if it involves creative financing. This is where most real estate investors get stuck. For example, if you take over existing mortgages, your real estate investing deals can only be funded with private money.

How do you convince private money lenders?

First, it is important to understand that nobody will trust you with their money if they do not trust your capabilities. As such, it is important to have a real estate investing website for seeking private money. The website should be simple and serve to convince potential private money lenders that your real estate deals are the best to invest their money with.

The website should also offer a way for them to sign up to become a private money lender.

Secondly, a business plan and success kit is important for convincing private money lenders. Any private money lender will want to see the type of deals you have done. If you do not have an impressive credibility in past deals, you must prepare a precise business plan for each deal showing all the numbers such as comparable sales, inspections, repairs cost estimates, rents, profit potential and so on. The clearer you can make this information, the more likely that your deal will get funded.

Ultimately your real estate investing business will flourish with more supply of readily available, cheap cash for your deals with private money.

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Private Money WebSites That Attract Private Money Lenders

Monday, August 10th, 2009
Private Money WebSite

Private Money WebSite

To be a successful real estate investor, you need a dependable source of private money for your deals.

Attracting private money is a necessity in order to run your business with no constraints – do any deals you want.

A private money website is therefore a must to attract private money lenders and private money investors for your real estate investing business

But you must have the right web site with the right message for private money investors to trust you with their money.

Why should you have private money?

1) If you like it, it’s a deal

Can you use conventional lending for a deal that involves creative financing (such as taking over payments)? Even deals that could probably make you $100,000?

Most unlikely!

No bank will finance you unless it’s a straight conventional buy; at least I do not know even one.

When you have a solid flow of private money that you can turn to at a moment’s notice, you can close any deals you want; if you like it, it’s funded!

2) Close more deals
With private money, you are the under-writer. This means you can do deals that other investors cannot touch simply because you have a ready source of cash from your private money lenders.

Even if you find deals with time constraints, you can still close on them because you can close on such deals as soon as you find them.

Conventional lenders typically take at leat 30 days to close, and come with lots of under-writing conditions. Hard money lenders can only lend on deals that meet certain criteria (such as 70% minus repairs). None of these conditions exist with private money lenders.

3) They are cheaper
Hard money lenders typically charge around 16% interest and higher, plus points in most cases. Conventional lenders may not even close on most deals unless they are conventional.

4) You do not need your own money
Hard money lenders will charge you points in advance and first month’s interest to close on your deal. Also, they will not lend you money to rehab in advance, so you may need a sizeable amount of money in the bank to get a medium-sized deal.

Conventional lenders need you to put some money down, typically 10-20%. Not so with private money.

Web Sites For Attracting Private Money

A good private money web site presents you as a polished professional to potential private money lenders or investors so they can finance your deals with confidence that their money is safe with you. In turn, you get all the money you need to fund deals that other real estate investors can never touch.

A private money web site must be specifically designed for attracting private money investors to finance your deals. Obviously, you don’t want to look sloppy to the very people who will finance your deals.

This web site presents you as a polished professional real estate investor who is at the top of his game. You come out as a successful business person who investors will not think twice to entrust their money with.

Recommended Private Money Web Site

Private Money WebSite

Private Money WebSite

The best source of web sites for attracting private money is RealEstateInvestorsWebSites.Net. Not only do they come with tons of features, they also come with numerous customizable designs to select from.

Their content is professionally written to persuade private money lenders that you are the best investor for their money. They are also fully optimized for search engines. You must have this web site if you are investing in real estate.

 

Click here to get your private money lender web site

 

 

 

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