Posts Tagged 'Private Money'

Attracting Private Money Lenders For Real Estate : A Marketing Pursuit

Posted on: October 31, 2011

Categories: Other Articles

Author: lbuen

Private Money Lenders for Real Estate – No Ordinary Lenders

So you think obtaining financing from private money lenders for real estate is a financing process? Think again! For savvy real estate entrepreneurs, they know that it is a marketing undertaking. Why? Let’s first take a glimpse at the financing process of applying for traditional loans.

Applying for Funding From Traditional Lenders

In the typical financing process, you need to submit an application at a bank or lending institution and submit a mountain of paperwork to support your application. Your credit score, financial state, and other qualifications have to pass the loan committee’s stringent standards. In effect, you are asking the bank a favor to lend you money by seeking their approval, and in return you pay them interest for the loan. You are at the banker’s mercy.But this is… Read the rest

What do you think? [ No Comments » ]

7 Strategies To Convince a Private Money Lender To Fund Your Real Estate Deal

Posted on: October 12, 2011

Categories: Buy, Other Articles

Author: lbuen

So you have set up your real estate website and blog to establish your online presence and start building on your name as an authority in the industry to build credibility not just for buyers and sellers of properties, but investors, as well. You have kicked off your word-of-mouth marketing by tapping your network to make known to everyone you know that you are into real estate investing. And so you have gotten a few messages hinting interest in investing in your deals. Your concern now is how to clinch the deal with a private money lender? Here are some tips.

1. Arrange a face-to-face meeting with your prospective private money lender.

Online interaction is not enough. You must totally convince your prospect that you are indeed human. Time to surface from your online persona and engage with your potential… Read the rest

What do you think? [ No Comments » ]

How Much Do Private Money Loans Cost

Posted on: October 5, 2011

Categories: Buy, Other Articles

Author: lbuen

How Much Do Private Money Loans Cost

Private Money Loans Up for Grabs With a Hefty Price

Private money loans may be more readily available as compared to traditional loans, but this accessibility comes with a price tag. True, you can do away with the piles of paperwork, credit check and other prerequisites required by banks and conventional lenders, saving you time and effort. In lieu of these is are steeper rates and points that you do not usually encounter when transacting with banks, making private money more expensive. Another reason why private money is dearer (and riskier) is because the loan is not insured by a bank or government entity. Let us get to know what these costs are.

Breaking Down the Cost of Private Money Loans

The price tag of private money loans can be broken down into two parts: interest rate and up front… Read the rest

What do you think? [ No Comments » ]

3 Sources of Private Money

Posted on: September 27, 2011

Categories: Other Articles

Author: lbuen

3 Sources of Private Money

As you may already know, cash is the lubricant of any real estate business, or any business for that matter. With ready cash, you can command a better bargain when acquiring a property as compared to buying it under financing. By eliminating the red tape involved in obtaining funding from traditional loan, ready cash allows you to focus on your actual money-making endeavors – looking for great deals and managing renovations. With ready cash, you can instantly seize opportunities that come your way without the need to forage for funding. Hence, it allows you to make money faster. But where do you get ready cash? Private money is a faster, more convenient and flexible way of securing cash for your deals. Let us take a look at some of the financial headwaters for this informal type of funding.

1. Get

Read the rest

What do you think? [ No Comments » ]

5 Valid Reasons For Obtaining Loans From Private Money Lenders

Posted on: April 16, 2011

Categories: Other Articles

Author: lbuen

5 Valid Reasons For Obtaining Loans From Private Money Lenders

Funding Real Estate Deals Using Private Money

Private money lenders are a fantastic source of funding for your real estate business. There are several strong points you can get when you finance your deals with private money compared to traditional loans, lines of credit, bank loans and other types of financing.

Perks of Private Money

Private money played an important role in fueling my real estate business forward. Even when I was just starting, private money has been there to help me close bankable deals. The following are some things I like about this form of financing:

1. No Credit Probe. Your siblings, dad, aunt or anyone in the family could be your private investor. You can also request for private funding from friends, business partners and through referral of people who do not want their spare money to… Read the rest

What do you think? [ No Comments » ]

How to Flip Properties Using Other people’s 401k or IRA Funds

Posted on: September 15, 2009

Categories: Investors, Reviews

Author: buyfixandprofit

Did you know that you do not have to invest your retirement funds in the stock market?  Real estate prices are at historical lows and there may never be another buying opportunity like this one again.  Lifelong, conservative investor friends of mine that have always believed real estate investing was too risky are now purchasing and rehabbing properties using the money in their 401k’s and IRA’s.

The concept of investing in real estate or other assets in retirement plans has been around for more than 30 years.  These kind of retirement accounts are called self directed IRA’s/401k’s and are governed by the IRS.  There are strict rules that the investor must abide by in order to receive the tax benefits associated with these retirement savings accounts, but they are fairly straight forward.  ALL expenses associated with the purchase, rehab, and… Read the rest

What do you think? [ No Comments » ]

What is a Hard Money Lender?

Posted on: September 15, 2009

Categories: Reviews

Author: buyfixandprofit

What is a Hard Money Lender?

A hard money lender makes short-term loans based on the value of an asset, in this case a property, with little regard to the borrower’s credit and/or finances.  Hard money lenders charge higher interest rates than standard banks due to the high risk nature of these loans.  Unlike traditional banks, hard money lenders can provide funds quickly, usually in 10-14 days, to purchase and rehab distressed properties.  These properties can be in need of significant repairs or be in various stages of foreclosure. This makes these loans popular with first time real estate investors that have little working capital or poor credit scores.  Look to use hard money loans to rehab foreclosures as your means to long term wealth and financial freedom.

Hard money lenders will only provide loan terms of 4 – 6 months at which time the… Read the rest

What do you think? [ No Comments » ]

Why Real Estate Investors Need to Develop a Relationship with their Bank

Posted on: September 15, 2009

Categories: Buy, Residential House

Author: buyfixandprofit

Rehab Financing Made Easy – Develop a Strong Relationship with your Local Community Bank

Find that investor friendly community bank located in the neighborhood where you will be buying and fixing foreclosures.  Be upfront, truthful, and communicate openly with your bank’s lending officer.  Develop a strong relationship based on open communication and most importantly consistent on time payments. Keep the lending officer abreast of your work so they get to know you and eventually the bank will treat you as a preferred customer.  They will be more willing to work with you in hard financial times or with special requests.  It makes smart financial sense for lending institutions to work with their borrowers during difficult financial times rather than enforce their strict guidelines with no flexibility.

3 Month Payment Deferral

Here are two… Read the rest

Related Posts Plugin for WordPress, Blogger...

What do you think? [ No Comments » ]