Who Needs Banks? Forget Them & Be Your Own Bank With Private Money!
Unless you’ve been secluded from all civilization or frozen in a cryogenics lab for the past 24-48 months, chances are you’ve realized that it’s a little tougher to get credit for your real estate deals than it used to be. The economy has shown intermittent signs of recovery but it’s by no means smooth sailing from here my friends.
So you may be asking “If the banks aren’t lending how am I supposed to get the funds to buy and rehab my real estate deals?” Well you’ve come to the right place and the answer to your question is…PRIVATE MONEY.
Private money is loaned by an individual or consortium of individuals rather than an institution. Institutions , like hard money lenders typically charge at least 15% and several points (additional interest) on top of that. However, when working with private money it’s easier to negotiate a lower interest rate—typically 8%-12%. Another benefit to working with private money lenders is that they won’t run your credit like institutional lenders. The loan you obtain from a private money lender is secured by a first mortgage on your subject property so there is virtually no risk to your private money lender.
Here are just a few ideas on how to get started with private money. Once you do it—it will transform your business and your life guaranteed.
1. Hang out with the rich folks - Go to networking events, trade shows, conferences, seminars, workshops, resorts and anywhere else you know wealthy people frequent. Professional organizations for doctors, accountants, bankers and lawyers are fertile ground for private money. Don’t print up a bunch of flyers and start passing them around in the country club parking lot—that’s soliciting and will likely get you tossed out and maybe even locked up. Instead introduce yourself to people and take it from there. Make sure to have your business cards handy. Important Networking Tip: Find out first how YOU can help THEM. How do you do this? Simply ask them about their favorite subject which undoubtedly is their self.
2. Join your local REIA - Real Estate Investors Associations are a great place for those who are skeptical about approaching someone at the local golf club. Attend a meeting and ask members how they got started (again their favorite subject) and if they have any sage advice for you in your quest for private money.
3. Host a presentation –Take out an ad in the local paper, post an ad on the net and post signs in your target neighborhood explaining that those who attend have to opportunity to potentially make 8%-12% on their money in as little as a few weeks. Reserve a room at a local hotel, your community center or the library and give a presentation on the benefits and requirements of becoming a private money lender. NOTE: This will require you to do adequate research on your market so that you are prepared to answer questions.
In short, there is money out there despite the media hype that the world is coming to an end. It’s up to you to go get it and start taking your business to the next level.
Shine on & prosper,
Cheryl Pinkard
Ps. Check out this link www.uprightpropertydeals.com for instant access to an amazing FREE real estate investing report. You won’t want to miss this limited opportunity.
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