» Private Lending http://realestatemonkey.com Fri, 18 May 2012 00:01:22 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 8 Steps To Finding Private Money: http://realestatemonkey.com/index.php/2009/09/8-steps-to-finding-private-money/ http://realestatemonkey.com/index.php/2009/09/8-steps-to-finding-private-money/#comments Mon, 07 Sep 2009 18:53:25 +0000 realestatemonkey http://realestatemonkey.wordpress.com/?p=48 Continue reading →]]> When trying to find private money for your real estate investment deals, no need to look any farther than your next door neighbor. Private money mortgages are clearly a path to dump truck loads of money. Private mortgages are a viable method of financing almost any real estate deal while creating above-average returns for your lender.

The typical mortgage market has changed in the last few years creating an end to “easy-money,” 100% or greater Loan-To-Values (LTVs) and the “if I can fog a mirror I can get a loan” mentality of lending. I am predicting that it will be some time before we see sub-prime loans, no-doc or low-doc loans or “hard-money” being underwritten again.  This forces the Buyer to revert back to more traditional methods of mortgage lending which require much higher credit scores, lower Loan-To-Values (LTVs) ratios thus creating much larger down-payments for both owner-occupied and non-owner-occupied housing.  

So how are you going to finance any real estate deal?  Very few individuals have enough cash or credit to purchase real estate investments. Ultimately it boils down to one simple statement.

Real estate investors need cash to buy houses.  PERIOD

Even if you have a TON of money lying in your bank account to use solely for your real estate investments, given the state of the current economy, the increased down-payments and lower Loan-To-Values (LTVs) ratios you WILL eventually run out of money.  This lack of unlimited capital could be the reason that you miss deals which could place untold riches in your pockets. This may not seem like a big issue at first, of perhaps may appear greedy on the onset of this statement; however, realize that with limited capital you now must prioritize your deals and constantly be asking yourself “Is this the best deal I can find or should I save my limited money for the next deal.” These questions may cause you to miss out on current deals that are good investments or future deals that might be GREAT investments. You need an ever-present, dependable, unlimited, never-diminishing source of new money to buy real estate investments. 

Before you can “cash-in” on this proverbial cow, you must:

  1. Develop your private lending program.

  2. Establish your reputation as a knowledgeable real estate investor

  3. Determine your target market of private lenders

  4. Create your presentation(s)

  5. Schedule your presentation(s)

  6. Make your presentation(s)

  7. Close your loans

  8. Repeat as needed

This is an excerpt from my book “Finding Private Money for Your Real Estate Investing Deals” If you would like a copy of the full ebook FREE. Email raymond@realestatemonkey.com

]]> http://realestatemonkey.com/index.php/2009/09/8-steps-to-finding-private-money/feed/ 0