Private Lenders Are FAKE Right?
Hello TCI I am a investor like most of us and I have very little money,bad credit and hard money lenders DO require a min. credit score to fund a project. Not just off the equity alone! But anyway I have brought several courses that says you can find private people who would like to receive a higher interest rate on there return instead of the banks 3-4% My question is does anyone have a success story they can share with me about getting a private party to fund there project it might motivate me to keep searching.....Its been about 8months I still have no luck in REI yet but I keep hope alive!...maybe it will pay off someday right.
Just tell people what you do and sure enough you'll find them. I found 3...and they didn't need my credit report.
1 was from a guy I go to church with...as a matter of fact he's a minister.
2 others I work with. (The ones I work with have money, want to do real estate, but don't because they don't have the time)
Even private investors are looking for security. Think about what it would take for you to invest in somebody else that had no money, no credit AND no experience. Money does not just gravitate to the deal, it gravitates the PERSON who can make the deal stick, is responsible AND educated. There is nothing fake about private investors, you just need to start by making yourself "not a fake" You need to broaden you cricle of influence combined with education.
Take it from a private investor. If some one comes to me with a deal that I do not think they have their ducks in a row to see a deal from start to finnish, then I offer them a small fee for finding it. If they don't go for it, then neither do I.
steadydoses,
you have the wrong attitude. You are in America - there are tons of people with money. They would be more than willing to do business with you but you need to get it together.
The tone of your post is doubting, Guess what that is probably how you are coming across. Do you have the features of your program together. If you purchased a couple, then they told you the elements of the program. How are you delivering that information.
What is your appearance like when you are delivering the message? Remember people are believing and trusting YOU when they invest with you. If you are not projecting enough confidence - then guess what.....
Walk in their shoes for a minute... the day that you purchased those "private lending" programs, did the person speaking come across as trust worthy, did you believe what they told you, did you believe that you could do what they did? OK hold that image.
You have to reproduce those results. So reread the programs - pull your presentation materials together, committ the key elements of your lending program to memory, practice them out loud in front of the mirror, pull together a few professional looking outfits, get a haircut, check your shoes (they need to be polished) - NOW GET OUT THERE A GET ONE!!!
Good luck.
Quote:
On 2004-04-26 14:24, steadydoses wrote:
Hello TCI I am a investor like most of us and I have very little money,bad credit and hard money lenders DO require a min. credit score to fund a project. Not just off the equity alone! But anyway I have brought several courses that says you can find private people who would like to receive a higher interest rate on there return instead of the banks 3-4% My question is does anyone have a success story they can share with me about getting a private party to fund there project it might motivate me to keep searching.....Its been about 8months I still have no luck in REI yet but I keep hope alive!...maybe it will pay off someday right.
Are you a member of a local REI club? You will find private lenders and mortgage brokers who work with investors who may be interested in helping you fund your projects. Also check out the lender tab on the toolbar on this site.
Quote:Thanks for the advice I could really use this information its just I have been looking and searching there is nothing wrong with my apperance or confidence but its alot harder than they make it sound but thanks anyway I will never give up trying.
On 2004-04-26 15:07, ligem wrote:
steadydoses,
you have the wrong attitude. You are in America - there are tons of people with money. They would be more than willing to do business with you but you need to get it together.
The tone of your post is doubting, Guess what that is probably how you are coming across. Do you have the features of your program together. If you purchased a couple, then they told you the elements of the program. How are you delivering that information.
What is your appearance like when you are delivering the message? Remember people are believing and trusting YOU when they invest with you. If you are not projecting enough confidence - then guess what.....
Walk in their shoes for a minute... the day that you purchased those "private lending" programs, did the person speaking come across as trust worthy, did you believe what they told you, did you believe that you could do what they did? OK hold that image.
You have to reproduce those results. So reread the programs - pull your presentation materials together, committ the key elements of your lending program to memory, practice them out loud in front of the mirror, pull together a few professional looking outfits, get a haircut, check your shoes (they need to be polished) - NOW GET OUT THERE A GET ONE!!!
Good luck.
I Have done several deals where I used "hard money" and it was very easy, but before you taelk to any "hard money" lender or anyother lender take the time to put yourself in their shoes and think about lending your money to someone to do a deal, ehat would you require? Have as much documented information with you and be profesional. The easier you make their job the better your results. If you are going to fix and flip, what I used hard money for, then have the property under contract with contingencys of course, and also have several contractors bids for the job. Also have a realtor run comps for the Fixed up house and just tell the realtor your plans and tell them that if it all works out and you sell through a realtor you will give them a call, they will run all the comps you want. Have all the information and then talk to a hard money lender. If they see the same potential as you from documented sources they wont worry about your credit or cash issues as much. The key is to do the work for them, show them that you are professional and will follow through with the project. Good Luck, Happy investing!!
[addsig]
You may be overlooking the most motivated segment of the population that might become a private lender -- The sellers themselves.
Every time a seller carries back financing, he becomes a private lender. If carrying back financing at a favorable rate will get the property sold at his price, why not use the seller as your private lender?
Quote:
On 2004-05-16 12:47, DaveT wrote:
You may be overlooking the most motivated segment of the population that might become a private lender -- The sellers themselves.
The sellers themselves !! Start out wholesaling houses. Find Motivated sellers, do a few deals, do a few more, and a few more and in the next 9 months the sellers themselves have just funded more than enough of your deals (and you don't have to pay it back).
JB
[addsig]
This is the land of the free. That means that you don't have to have money, you can get into some deals, technically, for free!! Investors are always searching for people to do the leg work so to speak and cause their money to make money for them.
My first real estate deal: I bought a house from a guy who owns the mortgage company that I got my loan through. He was able to acquire the house out of foreclosure, fix it up a bit, sell it to , and he made his profit, of course he made sure I would get the loan, like I said he owns the mortgage company he can make it happen. Then, I bought the property from him for $78,000 it's worth $93,000 and he even provided me with a tenant to start out with, just to make sure the deal would be sweet.
All I am saying is, networking is the best tool in this fine country of ours. It's not always what you know, it's who you know. As a matter of fact most of the time it is who you know and not what you know, so this lenders that won't give you a loan, forget about them, and move onto RE investors that are already established, they can make the money, while you do the work, and you can build your abilities, and your properties at the same time, by the way, the more creative you can think the better it will be. For example, the first deal I did, that I told you abut previously, the seller give me $15,000 for a down payment and all I had to do was give it back to him at the closing, it didn't exactly work that way but it got back to him and he sold the property, and I bought it, it's that simple.
Almost all my financing is private. First, my mother who was doing less than 2% in CD. Another is my RE agent who sold over 28M last year. She has lots to invest and recognizes a great deal though she is not interested in buying property, she LOVES to hold mortgages. Others are owner financed for the same reason my mother gladly holds my home mortgage.
My advice - be honest, sincere, and knowledgeable. Stay in touch with all and tell them know what you are doing, I have folks come to me asking if I have any good deals on the table.
Seem like w/ the older population in FL, like Reza said, them might want better that CD rates.
Make sure you don't commit elder abuse.
In the last month or so I've talked to 4 different individuals, each with $100K - 150K that they want to invest with me. They approached me and said "I'm getting crappy returns and want to put my money into RE". There are a couple of things that you may want to keep in mind....
Your first deal is your hardest. Imagine you have $200K in the bank and someone approaches you and says (or at least this is what you hear) "I've never made money in RE, but I've read a couple of books, can I borrow $200K and see if I can make us both some money?" HOWEVER if someone came to you and said "There's a house that I can buy for $100K. It will sell for $150K after we put $5K into it. I'll do the work and split the profits with you 50/50. Here are the comps, here's who will do the work, the bids, etc." That's a TOTALLY different scenario. Find the deal first, and then go after the money.
You can do this business without private money. Once you get a few deals under your belt, private money will be much easier to come across. That sounds frusterating, but it's true.
Go to local meetings. Talk to other investors. The money is out there. I've used it to get deals done. You may want to start with friends and family who trust you. They may have HELOC's or cars that they can leverage if the deal is right. After you have a track record it will be easier to work with strangers