Raising Private Money For Real Estate Wholesalers

One of the reasons I have a successful real estate investing business today is because I have made mistakes along the way — and, more importantly, I learned from them.

You don’t have to make the mistakes I made.

You can skip the pain of learning the hard way by reading about my slip-ups and what I did to fix them.

Did You Know That If You Lack Private Money to Close, You Are At Major Risk?

Wholesalers, you’ve done your job.

You’ve build a buyers list.  You’ve found a great deal.

But now, if you don’t get a buyer to purchase your deal quickly and if you do not have the cash or private money to close the deal yourself, you’ve got a big problem.

What are you going to do if your buyer doesn’t come through and close your deal?

If you haven’t spent the time and learned to raise private money, you might end up in serious trouble.

You might lose your earnest money, you can damage your reputation and – you will lose your profit.

That stinks.

I Got Screwed Early In My Wholesaling Career Because I Did Not Have Private Money

This happened to me early in my wholesaling career.

I put a great property under contract and then sold it to another real estate investor.

We had our double closings all set up, and I was ready to go.  But, guess what happened.  My buyer had a hunch that I didn’t have the private money to close on the property and he stalled.

He didn’t close.

He went behind my back and caused me to lose the deal and my non-refundable earnest money. It was a tough lesson that hit me right where it hurts—in the bank account!

Why did it happen?  It happened because I had not taken the time to learn and then raise private money for my real estate investing business.

Most Cash Buyers Value the Services of Real Estate Wholesalers

There are occasionally unscrupulous people out there.

Beware and be prepared.  Make sure that you have access to private money.

You must maintain control of your deal.  That means you must have private money or quick access to cash available as a backup if your deal doesn’t close with your buyer.

Don’t leave anything up to chance.

People are good and honest for the most part, and they value you as a wholesaler, but you must be prepared if things don’t go according to plan. You don’t want to have to completely depend on someone else for the deal to go through smoothly.

The trick is to maintain control of the deal, manage your timelines, deadlines and inspection periods.  And just in case things don’t go as planned, you must spend the time raising and have access to private money as a backup.

If I Only Would Have Had Raised Private Money for My Real Estate Deals

If I would have been able to close on that deal, I could have maintained control of that property and made my $15,000 profit. Half the battle is maintaining control and the other half is making sure that you have access to the private money to close.

Get access to private money today so that you can close your deals yourself if needed. Then and only then are you truly in control of your cash flow and your business.

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If You Want to Learn the 3 Secrets Used by Hundreds of Real Estate Investors from Across the Country to Raise Millions of Dollars in Private Money, Claim Your FREE “3 Secrets to Raising Private Money Training Video” Right Now at http://www.RaisingPrivateMoneyNow.com

To be successful as a real estate investor, you must have access to private money. Private money is the only source of funds that you, the aspiring real estate investor, can use where you set the terms and not your lender.

The importance of this fact cannot be overstated.

If you’ve been a real estate investor using private money for any period of time, or if you’ve struggled trying to get banks or hard money lenders to fund your deals you know exactly what I mean.

When you make the rules and help your private money lenders be successful, you are creating a win-win relationship that helps your business profit and your private money lenders increase returns and reduce risk.

Think about that for a minute.

If you go to a bank, a traditional source of real estate loans, you play by their rules. They set the fees, they set the terms, they set the interest rate.

And, they make you jump through hoop after hoop just to get the money.

It can be a painful process.

And frankly, not something that I would recommend you even try.

You’ll Pay Big For Hard Money

The reason most real estate investors rely on bank loans is simple. It is a lack of education.

Let’s explore the various funding options you can use in your real estate investing business.

Traditional loans are the cheapest, have the longest repayment terms but are the most difficult loans for a real estate investor to get.

Banks with real estate investors loans based on income and credit. That might be a problem if you are just starting out, are starting over or have too many loans already. The banks make the rules, not you.

I don’t recommend using bank loans to build your real estate investing business.

Hard money lenders are more expensive than traditional loans but still harder to get than private money. Hard money lenders usually charge several thousand dollars just to fund your deal and then they may charge up to 18 percent interest which you have to pay monthly.

The benefit to hard money lenders over traditional banks is that they are interested in the property than they are in your income or credit. It is becoming more and more common that even hard money lenders want to be very selective with the real estate investors they work with.

This is making it harder and harder to get hard money loans. And, hard money lenders require that you have the money to fix up the property.

The bottom line, you need cash to work with a hard money lender. And, the hard money lender makes the rules not you.

You will see why private money is so much more beneficial.

Get Private Money And Get Paid

Private money lenders and private money are exactly what real estate investors need.

Private money is usually more expensive than traditional loans but cheaper than hard money loans. Private money typically costs you nothing up front and the private money lender will fund your entire purchase plus the cost of construction.

Private money is money you borrow from people that are not in the lending business daily but want to earn a higher interest rate secured against real estate than what they can get from their IRS accounts, money market accounts and CD’s.

When you use private money, you make the rules. That means that if you listen to what your lenders want you will always have the private money to close.

Private money helps you eliminate negative cash flow, requires no cash or credit to get the loan and pays you up-front to close on your deals putting thousands of dollars in your pocket right away.

The benefits of private money are endless and every real estate investor must learn how to find and get private money. You must start today.

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If You Want to Learn the 3 Secrets Used by Hundreds of Real Estate Investors from Across the Country to Raise Millions of Dollars in Private Money, Claim Your FREE  Secrets to Raising Private Money Training Video Right Now at http://www.RaisingPrivateMoneyNow.com

When it comes to raising private money for your real estate deals, there are 3 proven ways I suggest you go about finding your private lenders.

The keys with private money for real estate is to keep it simple. You’ve heard the old saying, and yet when it comes to most private money strategies it just gets too complicated. Private money is a very simple concept there is nothing magical about it and you don’t need to fear it.

Let me explain what I mean before I teach you 3 ways to go about finding private lenders. Private money is simply private money lent by individuals, also known through investor lingo as private lenders, to rehabbers and landlords that pay cash for properties. In return for the cash, the private money is secured by the real estate with 30 percent or more equity covering the loan. That makes private money for real estate deals a pretty safe loan (or investment) for the private lender.

The problem that most real estate investors have when it comes to actually getting the money is finding private lenders. In my training program, on raising private money, I teach real estate investors that the key to getting the money lies in teaching your lenders to become lenders. But, the key to finding the potential lenders lies in following 3 simple steps.

First, create a business or at least a business plan that is clearly focused on the distressed property investing business. I mean your business buys houses at significant discounts and then fixes, sells or rents for a profit. Clearly communicate this business to your potential private lenders but make absolutely sure that you focus the benefits of the business on them, your private money lender and don’t focus on you.

Second, start with your warm network. Now, I know, I know, everyone says start with the people you know. What if you don’t know anyone, right? We’ll get to that in just a moment. But first, lets understand that I am not saying go ask for money. Instead, teach your potential private money lenders what private money is all about. Let’s face it, most people do not even know that the opportunity to earn such high returns secured by real estate even exists. So, teach them about it.

Third, spy on the success of others. If you don’t know anyone with money as the complaint is usually voiced, instead of finding new lenders, plug into existing private money networks. Once a private money lender gets a taste of lending private money on a real estate deal they are usually hooked. Private money is a great opportunity to passively be involved in real estate without the hassles of rehabbing and renting.

And then, to tie these three strategies together, I suggest you use cash magnets, also known as private money attracting components in your business, to attract and secure private money. Once you discover how to effectively use these strategies in a complete private money raising system you will be well on your way to getting all the private money you need for your real estate deals.

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