Financing real estate using private money to close on your investment properties is like having the keys to a bank vault.
It’s money you have access to 24 hours a day and if you’ve ever been in a situation where you knew you had to close a deal in less than 24 hours, then having immediate access to private money is crucial to the success of your business. REI.
I am sure there will come a time when you need to close a deal within 24-48 hours and having access to private money will allow you to close the deal.
Some of the benefits of using private money real estate financing is that it provides quick closings, access to a large amount of money, and confidence knowing you can close the deal.
“Private investors want to lend you money.”
Why? Because only with real estate can you promise a safe and guaranteed investment, and learning the skills to structure the deal correctly using real estate financing will bring you success.
“Let’s think about it for a moment.”
By taking the time to educate yourself properly and apply the necessary skills, you can offer a private investor a 15% to 30% return on investment. The investor gets their money back plus a healthy return on investment and you keep any remaining profits. It’s a win, win for everyone.
Unlike a hard money lender, which is also great, a private investor won’t charge you points and can usually roll over your interest payments to be paid in full once you sell the property and make a profit. .
What is a private investor?
A private investor could be anyone who doesn’t even invest in real estate or isn’t aware of the benefits of real estate financing with private money.
It’s the guy with an IRA, Sep Plan, retired business owner, doctors, lawyers, CEO, and top management.
Basically anyone you can think of who might have money. He’s out there and it’s easier than you think to find private money for your real estate financing, if you know where to look. Where to find private money investors?
It is obvious that the first place you would look for private money is your family and friends. Stay away from family and friends. Most of the time, depending on your family, you will find that they will try to dissuade you. You will have a much harder time convincing them than if you just go out and talk to random investors.
Start by creating a list of important people you know. Ask yourself this question?
“Who do I know who would benefit from this?”
Do you have a primary care doctor that you know?
Do you go to the dentist?
Do you consult with an attorney?
Do you know a CPA?
Do you know someone in senior management?
Do you know a business owner?
Do you know a friend who could recommend an acquaintance of yours? Sit back and think for a moment and I’m sure he’ll be able to come up with a list.
Knowing and understanding how to structure your real estate financing using private money will allow you to secure good deals.
