Private Lending for RE Investors
Private Lending for Real Estate Investors:
The Six Steps to a Private Lending Program
Wow, has the real estate market changed in 2008! Real
estate investors have been shut out of traditional mortgage
money unless you have a 9000 credit score and a 50 year
work history without missing one day of work (ok enough of
the weak humor but you get the idea). Even hard money
loans are HARD to get as they have all gone out business.
But just as the mortgage market is shunning the investor -
we are starting to see signs that the reals estate
marketing is starting to bottom and home prices have even
gone up in some markets. So how do you take advantage of
this buying opportunity if you can not get mortgage money
from traditional sources? Private lending is the answer.
You can start borrowing money from private lenders to fund
your real estate investments. Raising private money allows
you to take advantage of the low prices without ever using
any of your own cash or personal credit.
There are several significant benefits and advantages of
private money lending compared to mortgage money or hard
money lending. First, you can begin buying more houses for
all cash offers and drive significant discounts from
sellers who are highly motivate to get cash versus waiting
and hoping another buyer will get a mortgage approval.
Second, very simple paperwork with a typical private lender
transaction only requires 3 or 4 documents with less than
20 pages. Third, you control the terms and conditions under
which you will borrow money and the lender will lend. You
tell the lenders what rates of interest you will pay, how
long the term is and all the other conditions are set by
you not a bank or hard money lender. Finally, you can turn
many non-deals with no equity into super profitable deals
with substantial equity by paying off existing debt at a
discount… using private money.
Six Steps to develop a private money program for real estate investors:
1) Develop your private lending program and the terms
and conditions under which you will borrow money and repay
your lenders
2) Build your info/credibility kit to establish
yourself as investing expert
3) Create a marketing plan with 5 to 10 different
marketing techniques to attract potential private lenders
4) Create your group or one-on-one presentation
5) Schedule group or one-on-one meetings and follow-up
with potential lenders
6) Present and close deals with your potential lenders
Given the new market realities, private lending may be the
only option if you want to buy and own investments and take
advantage of the low prices.
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I invite you to learn more about Private Lending and get my
new FREE 20-page eBook titled “Discover the Secrets of How
to Fund Your Real Estate Deals with Private Lenders!” by
clicking here
Mike Lautensack is a full-time real estate entrepreneur and
creator of the Private Lending Presentation Kit.
