7 Truths About Asset Based Lending

 

The #1 challenge for real estate investor and entrepreneurs is FUNDING. How to get all the funding you need to acquire, re-position, stabilize, flip and/or rent distressed and discounted real estate properties.

Truth is, there’s more funding and financing options in our real estate world today than at any other time in U.S. history. The onset of venture capital, hedge funds and private equity funds and the volatility of the stock market – along with the desire for private investors to diversify out of the stock market – have opened up funding and financing options that simply didn’t exist 10 years ago.

Really smart entrepreneurs and start-up business owners have created and thought up new funding sources for real estate that any “traditional bank” would never touch or consider. There are real estate funding conferences that are populated with real estate financiers ALL OVER the U.S. nearly every weekend. The funding is out there.

The problem is that most real estate investors have no clue these options exist. They are tricked into thinking they need their own CASH or bank financing to fund their deals. They are lead to believe that they must WHOLESALE properties for quick cash and create a “buffer” of assets priorto doing BIG DEALS.

Banks are the Problem

I think that banks are the biggest problem for real estate investors. The reason I feel that way is because the banks and financial institutions are the ones who caused the financial crisis in 2007. Have you seen the movie “The Big Short” or read the book? If you haven’t, yet, I definitely recommend it.

They lent money to almost anyone who asked for it, which ended up causing total chaos.

Now, eight years later, here we are with bank foreclosures, distressed properties, short sales, REO’s, HUD homes, off-market properties, etc. The banks won’t lend to real estate investors like us to fix the problems that they have caused. Regardless of your credit score, banks will not lend on buy, fix and sell real estate. They will always say “no” when they find out it will be vacant and under renovation.

Truthfully, they won’t even lend if there’s peeling paint on the property, let alone all of the other work your investment home might need like new windows, new flooring or a new roof.

They are offering solutions only for owner-occupied properties.

They cause so many issues for real estate investors like…

  • Conventional lenders won’t loan when a property needs any repairs at all… even just peeling paint
  • Banks only lend on the purchase price and want you to put 20% down
  • And they won’t lend you money for repairs
  • Hard money lenders want at least a 680 credit score
  • Transactional funders only fund for one day
  • Realtors won’t take you seriously unless you can get financing
  • Sellers won’t take you seriously unless you have a proof of funds

How many of you are losing out on great deals you find because you don’t have the funding to pay for it and you are afraid to make an offer because you don’t think you’ll be taken seriously?

Asset Based Lending

Because of hearing this issue come up from so many of my students, I decided to give seriously real estate investors a chance to get the funding they need for all the deals they want through Freeland Lending.

Our asset based model of lending means that we provide the funding through capital that we have raised.

Our team looks at the asset or “deal” more than your credit or financial situation. Here are the 7 truths about asset based lending if you partner with us at Freeland:

  1. Your deal does the talking for you
  2. If it makes sense, then we WANT to fund
  3. We allow you to get in “LITE” meaning with little or NO money down
  4. No money down rental and rehab loans
  5. Which allows you to buy more properties because you have little or no money tied up in any one deal
  6. The ability to close profitable deals
  7. The chance to build up your credibility with your own private lenders for future deal

The Deal Genie

No other conventional lender offers the ability to run a deal past them BEFORE you have it under contract. Our clients can be looking at a deal, sign online and fill out a form that will be submitted to our team of expert underwriters to review and see if it is something we would like to partner with you on.

We call this our “Deal Genie.”

The process takes about a minute and our underwriting team will get back to you within 24-48 hours to let you know if it’s a deal or no deal. If it’s NOT a deal, we will walk you through why it isn’t a deal and what to look for in the future.

This entire system was created by myself and my partners at Strategic Real Estate Coach for SREC students, members and clients. This isn’t open to public or to just any old real estate investor.

Partner With Us

As you can see, we are the clear opposite of what conventional banks are offering. We show you HOW to do a successful real estate investing transaction, make sure it’s a safe and profitable investment AND, WE’LL FUND IT FOR YOU!

Your investments do the talking for you, NOT your financial background. If the deal makes sense, then we WANT to fund it.

The best part is, while you are closing these profitable deals with us, you are building up your portfolio and credibility for you to eventually partner with your own private lenders. Imagine how it will feel to finally be able to get your investments funded and be able to confidently make offers with a verifiable proof of funds letter.

Sign up for this master class we are currently offering and you will also be the first to download our new e-book “Funded: The Truth About Asset Based Lending”:

Be Daring,
Josh

CEO Strategic Real Estate Coach

CEO Freeland Ventures and Freeland Lending

CEO Yellow Jacket Properties

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