I have funded my deals with every method known to man: conventional loans, seller financing, 1031 exchanges, credit card checks, refinance one to buy another, partners, wholesaling, hard money, private money. Each has its place in certain situations. The one that will skyrocket your success as a real estate investor is Private Lending. The reason for this is simple. Private Lending is FAST, EASY and can be used in any situation and any property. AND it is unlimited. Let me take that back. Your sources and amounts of private money are limited ONLY by your efforts. Why you may ask is private lending even MORE IMPORTANT NOW than when I started full time as an investor?
If you have not been under a rock for the last 4 years you know….
The Lending World Has Changed
Not only are the banks requiring 20-25% down, good credit scores and full documents, you are limited on the number of mortgages you can hold. And the government is trying to regulate areas that were once the domains of real estate investors, like seller financing. As if seller financing was the cause of the current financial crisis and not Option ARM, No income, No doc loans.
Private lending seems unusual to new real estate investors, but other small business owners use private lending to raise capital to start or expand their business. You can too. You see, individuals who know and trust you will take a chance on your business when a bank will not. So start ups will use private lending to start up a business and not go through the requirements and restrictions of the bank. Your private lenders are even better protected since their investment is secured by a property and not just the hard work of the standard business owner.
How can you get started finding private lenders for your deals?
I offer a Free ebook called Finding Private Lenders which explains how to develop your contacts and talk with private lenders.
At the end of the ebook, I provide a spreadsheet using a typical single family residence purchase so you can explain private lending to your potential lenders.
Click this link to get my e-book and I will email it to you.
In my training courses and coaching, I teach you how to overcome your fears when talking with your private lenders and how to take care of them so they keep coming back. And I provide a letter for you to send to the seller with the bank statements of your private lenders when you make purchase offers.