Archive for How to Get Private Money
Can Part-time Real Estate Investors Get Private Money?
Posted by: | CommentsIn a word: absolutely! But, let me explain more…
It’s very common for real estate investors to start out on a part-time basis. It usually goes something like this:
You’re working a full time job or running another business and you recognize the great wealth building opportunity that real estate investing brings. You begin looking at properties, making offers and a getting feel for how the business works. You soon recognize that financing your investment properties is a big part of the equation. Mortgages and hard money are very difficult to come by (and the terms are unfavorable). You realize private money is the best option for buying and selling, as well other entry/exit strategies (1031, etc.).
A problem arises in your mind, though: “will it be a negative factor for a private investor to place funds with me since I do not yet dedicate all of my time to real estate investing?” After all, you think, “won’t the investor see a problem that their investment project with me can’t take full priority over my job or other company?“
These are good and valid questions. You are on the right track when you think along these lines because you are putting yourself in the private investor’s shoes. It would be cause for worry if you didn’t think this way a little bit. But, fear not..
Part time real estate investors can get private money just as easily as full-time real estate investors. As long as you set up the deal the right way, there’s nothing stopping you from giving the private investor and their investment with you all the attention they need to Read More→
Why Private Money is King
Posted by: | CommentsIn 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 Read More→
How To Get Private Money
Posted by: | Comments“How do I get private money?” is a question I am often asked by real estate investors.
It usually does not matter what the investors’ background is or what their purchase or sales strategy is. It does not matter if they want to buy and flip foreclosure houses or acquire apartment buildings. The fact still remains: that private money is essential to success as a real estate investor.
Private money allows you to pay cash for deals, negotiate better terms and close quickly – all of this helps you turn profits faster, filing your bank account to the point where the bank teller’s eyes get wide when you make a deposit.
Instead of “How do I get private money?” there are two better questions you should ask:
1. Where to I find private investors?
2. How do I propose a private money deal?
These questions are more specific AND Read More→
