In our national real estate market right now, CASH IS KING.

Private money (money that another person invests with you in real estate for a handsome return on investment) is the best means to pay CASH – which means you get the best deals. I don’t know of very many asset managers at big banks, the ones whose job it is to unload foreclosed real estate by the million dollar chunk, that like to entertain offers contingent on financing.

Private Money for real estate investing is your single best source to get the cash you need to close the best deals.

If you are making offers contingent on mortgage or hard money financing, you may be paying 15%-20% too much for every deal you do. This adds up to THOUSANDS of dollars in lost profits and pushes your goals that much further away. Why?….

Think about it: why would a bank take a discount from their asking price if they cannot be sure that the deal will close? The bank would be taking their property off the market (which could cost them a sure buyer) and…wait…. and… wait… and… wait…and… wait for you to get your mortgage.

In addition, the bank whose property you are buying knows full well that the mortgage you are trying to get may not even close, because of some obscure technicality or whim of a loan approval officer having a bad day. And, more importantly, the banks you are trying to get your financing from are probably in the same boat as the one who is trying to unload their foreclosure properties – BROKE! Your bank or mortgage company isn’t going to be super-eager to finance a house that their buddy bank just took a bath on.

Now, let’s say you get approved and close a few deals with mortgages from banks. Since there is usually a limit to how many mortgages you can get for investment properties (currently it is 4 or 5, depending on our good friends at the mortgage companies and government) – so your profits are pinched and pulled. I don’t know about you, but I like the idea of having more than 4 or 5 properties in my portfolio. Even if you want to flip houses or wholesale, you will still be greatly limited in your real estate investing business by forces beyond your control. This is not the way to make big money.

Each day you delay getting private money, you are missing a HUGE opportunity to capitalize on the “all you can eat” buffet of bargain real estate. Grab a free copy of my audio CD Secrets of Private Money Revealed to learn the techniques that I have used and taught countless real estate investors across the country to get tons of private money to do any kind of real estate deal.

Hard Money is NOT Private Money

I’m going to take an informal poll today. Raise your hands (by clicking below) if you would

• Like to: pay high interest rates, points and have extremely short term financing
• Like to: pay lower interest rates, no points and have all the cash you need for as long as you need it

As the results come in from across the country, you can see that most real estate investors, whether you are flipping single family houses or buying apartment buildings or commercial real estate, prefer long term financing with lower interest rates and no points. If this is what you prefer

Before you stop me, saying something like: “But, Adam, I just want to get the deal done, I don’t care what type of financing I have to get
Private Money – Every Day

For me, private money is the single most important part of my real estate business. It doesn’t matter what technique or system you have for acquiring deals what technique or system you have for selling or operating deals, private money is the one key factor that will make the multi-million dollar difference for you. Don’t believe me? Read on.

Once upon a time, in the ‘go-go’ days of the real estate market (when cheap mortgage money ruled the day), private money was an afterthought for me. Since I had worked in big corporate finance and credit decision making, I thought that I had it all figured out. For my real estate investment deals, I could just use creative selling financing and utilize my personal lines of credit or get a mortgage if need be. This worked for a time, and then…

The game changed.

It seemed like one day I woke up and the real estate market had changed overnight. My favorite mortgage brokers were nowhere to be found – they were running for cover. All of the glorious news about the housing market was no longer spilling from the TV and newspaper headlines. The seller financing and other buying techniques that other investors and I were using for single family houses and multi-family deals evaporated. My deal pipeline slowed to a trickle and then…

it want bone dry.

With no banks, mortgage companies or lines of credit to rely on, I knew I had to start drumming up private money. After my first few private money deals, I started filling my deal pipeline again. Years later, I realized that lining up private money investors to fund my deals (I like to wholesale lots of single family houses, buy larger multi-family projects and rehab and flip a few houses a month as well) was allowing me to crush banks for super-discounts and turn houses over quickly.

What was my key to getting seven figure private money sums? What did I do to stack private investors up so high that I have a waiting list of anywhere between 11 and 16 private money investors at any given point?

• I focused on private money.
• I committed myself to it.
• I set private money goals.

Every day, I told myself that I was not leaving the office until I did at least one thing (at the absolute very least, no matter what was going on in my business or in my life) to bring a private investor in. Every day, I worked on one component of my private money system, turning myself into a private money magnet.

If you want to become a private money magnet, grab yourself a FREE copy of my audio CD Secrets of Private Money Revealed.