How to Get Private Money Easily for Your Real Estate Investing Deals

Monday, November 3rd, 2008

Private Money for Your Real Estate Investing Deals Financing always seems like the biggest roadblock for investors. I know that whenever I got started it was a huge concern of mine. After diving in to my real estate investing education, I knew I could implement a marketing plan to get leads coming in, learn to qualify leads, and eventually, get a great deal under contract. But, the question that remained in my head was, “How the heck am I going to get a deal financed? I don’t have cash or credit. Who’s going to lend me money?”

The two financing strategies that seemed to make the most sense to me were using hard money lenders or private lenders to fund a deal. Based on what I had read, I thought finding a hard money lender would be the easiest strategy to get started. Hard money lenders give loans to investors based on a property, not a person. If I could find a hard money lender and present them with a great deal, I could get it financed.

I ended up finding a hard money lender shortly thereafter (great places to look are at real estate investor clubs and the money to lend section of newspapers) and had a great deal under contract. Then, I learned why they call it hard money. The loan was short term with high interest and five points. I had to negotiate an extension on the hard money loan too because the house didn’t sell until a few months after the initial term of the loan. The deals profitability rapidly decreased all because of my financing problem.

In defense for hard money though, I have used it to finance dozens of properties over the years. It’s a part of my overall financing arsenal. The important thing to keep in mind is your exit strategy, especially in today’s market. Cashing out a short term loan would mean either selling or refinancing a property, both of which are getting exceedingly difficult. Bottom line, know how you will pay off a hard money loan if you get one.

To some up my thoughts on hard money, it’s great to have one on your team when you need them, but there are cheaper, easier, and more flexible ways to finance your deals.

Enter the Private Money Solution

What if you had affordable and flexible cash on hand to fund your real estate investing deals? Wouldn’t that make all the difference in the world?

It has for me. I’ve been getting private money ever since my first year in the business and have recruited over $6M in cash from private investors. I have a free ebook and power point presentation on getting private investors. Make sure to download it if you haven’t already. And guys, I’ve made all the mistakes and don’t want you to do the same. Why not learn from someone as highly experienced as myself?

Also, if you missed the getting private money easily webinar that I did with Trevor Mauch, check it out. It’s almost 2 hours long and chocked full of actionable content.

But, since I continually get bombarded with questions about getting private money, Trevor and I decided to put together an educational video series to help you get started. We’re going to call it the “Private Money Blueprint.”

In the first video, Trevor starts out by giving his story and going through his first deal (which was funded with private money). Then, I diagram a couple deals that I’ve done over the years where private money made it happen.

Check it out . . .

We thought we would give you a little info on our background and show you specific deals that we utilized the power of private money. Keep on the lookout for more instructional videos this week. We are really pushing hard to get them out.

Also, we’ve even put together a separate website just for the “Private Money Blueprint” video series. You can check it regularly and ask any questions that you have.

We’re here to help and plan on providing you with everything necessary to get private money for your real estate deals easily and quickly. Remember though, knowledge is only a stepping stone for success. Without action on your part, there will be no results. Make a commitment to yourself to implement these ideas in your real estate investing business. The private money solution could be exactly what the doctor ordered.

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http://homesolutions911.comnotyetcompleted fsboladysc

I can not begin to tell you how much this information has helped me. My husband recently became ill and I have been in the real estate brokerage business for over 33 years and the bottom of the market fell out and I am the only provider as of now. I have never had a problem finding the deals but we have no credit and no strong income to do anything but Private money. I did not know where to start and I really had no money to start with but real estate is all that I know. After your fantastic webinar you inspired me to just get busy. I have made a couple of contacts but I have not gotten anyone interested as of yet. The folks I have talked with tell me that they are real concerned about investing in property that may not sell. Now I need your guidance as to what I need to do. I have a property that I must get private money for that I am buying with a partner. Please help us. Thanks
Wil Christenson

Thanks for all the great info guys! What paperwork are you using? Is there a mortgage? is it recorded? Are you signing the note personally (if there is one)? Are you pulling comps for the potential investor? Are you taking them on a ‘drive-by’ of the property? What if they are out of state? Have you used non-local investors? How do you structure the payments and terms? do you have to make regular monthly payments?

Thanks again! I’m looking forward to more. This is great information that I haven’t been able to find anywhere else!
Wil Christenson

In the interest of full disclosure, before you read the rest of this, I have to tell you I’ve been lucky enough to learn from Patrick for several years. Not just about Private money, which he has been recently coaching me on, but in all aspects of real estate investing.

Why Patrick? Well, first let me say that I strongly believe in standing on the shoulders of giants. I mean, there’s no need for me to repeat the same mistakes others have already learned from. If you subscribe to this philosophy, the only real hurdle then is finding the giants whose shoulders you should stand on.

Patrick is one of those giants. I’ve met a LOT of real estate investors over the years. And most of the investors I’ve met are doing mediocre at best. Therefore, when I went looking for an investor to learn from I was looking for someone who was exceedingly and consistently successful.

When I first met Patrick my perception was of a young kid with a wannabe attitude. That changed fast. The more I got to know him, the more I realized that this “kid” was killing it in real estate. He was buying four, five, sometimes six properties every month. I quickly realized that whatever he was doing I definitely wanted to learn. I was fortunate enough that he was willing to teach me.

I picked Patrick’s brain for many years, and without exception Patrick has given me more nuts-and-bolts usable real estate investing advice than anyone, period. And please consider that last statement in the light of the following: during that same time period I was reading just about every real estate book and attending just about every real estate seminar I could find (to the tune of about $30k per year). Knowing that, you may want to go back and re-read the first sentence of this paragraph.

Patrick not only gave me the techniques I needed to be successful, but he helped me tweak them to fit my business model, or just fix what I screwed up. And he did it with an underlying tone that was always encouraging.

So, here’s my suggestion: IF you are serious about becoming a successful investor, and IF there is any way you can get Patrick to give you real estate investing advice, than I say do whatever it takes to get that advice. Own a car? Sell it. Got a house? Mortgage it. Just get this advice. The payback will be well worth it.

Oh yeah, let me tell you one other thing about Patrick. Real estate investing wasn’t the greatest thing he ever taught me. The single greatest thing Patrick ever taught me was to work on myself first. To be a better person today than I was yesterday. And he taught by example.

Those are the two reasons you can’t go wrong investing time or money with Patrick. He knows his business when it comes to real estate investing, and he always does the right thing. A rare combination in this industry. Oh yeah, here’s a third: you’ll also earn a great friend.
Patrick Riddle

fsboladysc,

Thank you for your kind words!

That’s great that you’ve already started getting the word out to potential private money lenders. Now, you must continue planting seeds and setting up appointments to present your program to. Start making a master list of everyone that you’ve presented to so that you can follow up in the future. FOLLOW UPS are the key to private money success!

Do not get discouraged. Just take persistent consistent action towards your goals.

Also, make sure to watch the third video. It will be on the blog later today. It gives you the exact info you need to get in front of potential lenders.

Wil,

Thank you so much for everything you said. It’s hard for me to even respond to something like that. I look forward to continuing to teach you everything I know and more.

How to Get Private Money Easily for Your Real Estate Investing Deals

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