private lending

Top 5 Keys to Understanding Private Lending

Friday, June 3rd, 2011 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | 1 Comment

Private lending is the absolute key to unlocking the door to successfully completing real estate deals. Why would you want to use a private lender? You are able to get money from individuals more easily, more cheaply and on better terms than you can from institutions. In real estate, where you may only need short-term money, the door to borrowing from institutions may be locked. What do we mean by private lending? Private lenders are individuals who will loan money on a one-to-one basis, often from their retirement accounts, for various types of investments. Borrowers sometimes secure more than one loan for their projects if the first private lender is willing to make the loan but doesn‘t have enough liquid cash to provide the entire amount needed. The demand for private money outweighs the availability, unless you know how to look for it. However, you have to make sure that you are careful in how you work with private lending. If you do it wrong, you are going to screw things up and will have a host of problems and chaos.

1. Know the Lender’s Concerns – There are three main things that are important for lenders in a private lending scenario:

They want a smooth, simple transaction – be sure you can easily and clearly explain the purpose of the loan.
They want to make sure the principle, the amount of money they are loaning, is going to be adequately protected.
They want to know their rate of return – a function of both points and time; their overall return after legal fees, title work and lost opportunities.

How will the principal be protected? How will the principal be paid back? What is the anticipated profit? When will that be paid? Is there enough profit to make it worthwhile for both the lender and the borrower? The lender‘s job is to ask those questions.

The lender needs to vet the borrower and make sure this deal will happen. If you as a borrower can address those concerns up front and outline the deal in detail, before the private lender even has to ask, you take a load off his or her shoulders. Prove on paper that the deal makes sense, that it will perform and that it will close.

2. Know the Title Company’s Concerns – Whether you are the borrower or the lender in any private lending transaction, think carefully about the terms and respect the people that are instituting those terms. The title company is responsible for coordinating the transfer of property and the exchange of funds, and will want:

Money to be wired to them or brought by way of a cashier‘s check, bank check or certified funds.
Closing instructions from the private lender.
Escrow instructions signed by all the parties involved (how they need to execute their tasks, handle the money and what their duties and responsibilities are for each party to the transaction.) The closing instructions will come from the lender, who is indicating under what terms they‘ll release their funds so that the transaction can go forward.

3. Knowing the Attorney’s Concerns – Most of the time, the responsibility of getting the correct paperwork in place for a privately funded transaction is going to fall upon the private lender and the private lender‘s attorney. Private lenders need to make sure that they have an attorney who understands these types of transactions; they are different. Anything and everything can be negotiated, and the attorney needs to understand what was worked out between the borrower and the lender.

Loan and Real Estate Documents – Promissory note, mortgage, deed.
Payment Documents – Closing instructions, projected payment history, accurate payment schedule and loan history.
Business Documents – Personal guarantee, business-to-business agreements.

5. Knowing the Private Borrower’s Concerns – All private lenders should understand the issues that borrowers have to consider. They need access to the money. They wouldn‘t be looking to borrow money if they didn‘t need it, and they generally need it relatively quickly and easily. So access to money is their first concern. Are they getting access to someone with money to loan, and is that access something that can be responsive to their needs?

Borrowers want a smooth, simple transaction.
The money is there and can easily be applied to the task at hand.
Borrower’s need to understand the private lender’s terms.
Set up a win-win situation.

6. Putting Private Money into Motion – “He who has the gold makes the rules.” Private lenders make an important contribution to real estate investing. They make it possible. If you want to make a lot of money, you need to know how a private lender fits into the mechanics of your deal.

Understanding do’s and don’ts of advertising for private money.
Long-term or rehab deals.
Quick turn or “flip” deals.

Here I’ve really just touched on what is involved in private lending for real estate investing. It is an integral part of successful investing, and if you know how to navigate the world of private lending, you’ll have access to a wider range of investing opportunities.

To learn more about private lending, or to kick your own real estate investing efforts into high gear, click here .

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Tags: bank, Foreclosure, investing, private lending, private money, Real Estate Investing

Legally swipe your competition’s private lenders (video for ya)

Sunday, August 29th, 2010 | Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | No Comments

Have you ever seen a real estate investor in
your town closing a bunch of deals…

… and you’re sitting there wondering how they’re
funding their deals?

Well, this video that I found last week
shows you how you can literally (and legally)
*spy* on your competitors to see who their private
lenders are (and hard money lenders too!)… and
he shows you how you can swipe those lenders so
they can become your own.

Check out the video… its 23 minutes… and I think
you’ll enjoy it a ton
https://m1mm.infusionsoft.com/go/pmod/Josh/ <<<

Oh, also…

… the video shows you how this also
works for finding ANY person who lends private
money in your local market pretty darn easily
(this source he shows in the video is free in most counties too

There’s actually an example of a real world
private lender he found doing what the video talks
about that just lent $300k to another investor
a month ago.

This can change the game for some investors who
are needing more private lenders to help you close
your deals.

Check out the video and let me know what you think <<

See ya over there

Josh

PS – I think they may be taking the video down soon…
not sure when… but it’ll definitely be soon. So, head
on over and check ‘er out now while its up for ya.

Tags: Foreclosure, FREE Short Sale Stuff, private lending, real estate, Real Estate Investing

Secret 2-Pay Plan Revealed!

Monday, August 23rd, 2010 | Real Estate Investing | No Comments

Last week I introduced you to an amazing new opportunity for funding your real estate deals… and the bad news is you only have one more chance to get in on the action! BUT, here’s the good news… I convinced Jason to offer a 2-pay option, for ONE DAY ONLY!

Learn how to get cold, hard cash to fund all your real estate deals, regardless of income, assets or credit! Join our free Webinar training, “Using Other People’s Money For Your Deals.”

To watch the Webinar and take advantage of this special, super-secret offer, visit http://jasonandjosh.com/ NOW!

Here’s how to make sure that you get the special offer:

After you watch the Webinar, click on the Click Here To Get It button below the video.
Once you’re at the check-out page, review everything that is included in this AMAZING OFFER, and click the Add To Cart button.
Enter your information into the form. When you reach the Product Purchase Plan section, select the second option, $697 charged today, and 1 payment of $697 remaining.

Over the last several years I’ve seen investor after investor lose deal after deal because they couldn’t get access to funding, or they feared their personal credit history would stop lenders in their tracks. Learn from one my top coaching students as he shows you his amazing way to access an endless stream of funds for all your real estate deals, regardless of personal credit, income, or assets!

Visit http://jasonandjosh.com/ now and get ready to ramp up your investing business!

Tags: funding, investing, private lending, Short Sale

Confidential List of Money in Your Area.

Tuesday, August 17th, 2010 | Real Estate Investing | 1 Comment

You already know this, but when it comes to real estate everything is easier with cash …buying REOs, auctions, short sales, FSBO deals and everything in between.

That’s why I’m focused on raising as much money as possible and so should you.

Imagine having access to every private lender in the nation, and in your local area that are waiting to fund your next deal with cash.

I’m hosting a very special call with my good friend and SREC Masters-Elite coaching student, Jason “The Money Man” Medley, who’ll show you how to raise all the funding you’ll ever need.

Regardless of your current situation, income, assets, or credit, you can get the cash and capital you need for any real estate deal you do.

Jason has a list of hundreds, if not thousands, of active private lenders nationwide, including your local area, who are ready and able to fund your next deal with cash.

Wednesday at 8:30 p.m. Eastern he’s going to show you how to get access to this list and even give you the marketing tools and language to get private lenders banging down your door practically throwing money at you to fund your deals.

Click Here To Register For The Webinar & Learn Full Details!

After this call, you’ll start closing…

* Short sales faster

* Deals that need rehab even though hard money lenders have all but vanished

* Deals that require you to move quickly and pay cash

* Deals regardless of your personal credit, income or asset situation.

And you can start buying at auctions because you have cash.

There’s massive opportunity to make a lot of money. We’re at the tipping point where a flood of deals are entering the market and having cash will help you get all the deals you want.

And there is no better or safer way to invest in real estate than using other people’s money.

Jason is going to show you how to do all that Wednesday night at 8:30 p.m. Eastern.

Listen, whenever we have Jason on a call it always fills up fast. This time he’s sharing information he’s never revealed to my students outside of our high-end programs.

Click Here To Register For The Webinar & Learn Full Details.

See you on the webinar with Jason this Wednesday at 8:30 p.m. Eastern.

Best,

Josh

P.S. Cash is king now, and the opportunity that’s just sitting and waiting for the savvy investor to take advantage of it is massive. Get on this call to prepare yourself for the massive flood of deals soon to hit the market.