| Whether you have lots of money and great credit | | | | instead of the lump sump cash they wanted (but |
| starting out, or no money and lousy credit starting | | | | couldn't/didn't receive when they sold). NOTE: Two |
| out, either way, if you truly want to make a serious | | | | questions here could make you a nice chunk of cash: |
| bid at building a property empire then you cannot | | | | "Why?" and then "Oh, I see, well Mr. Jones that's |
| discount the importance of learning how to find | | | | actually my specialty. I can get you all the cash |
| investor partners and equally how to find private | | | | coming to you within a week, and you could |
| lenders to help fund your real estate investing. As | | | | __(insert their answer to Why? here)__ right away |
| you go along in your real estate investing career, as | | | | without waiting all those years and the headaches of |
| long as you pay attention and get educated about | | | | collecting payments. Of course, because you're |
| real estate investing, you will find that the skill you | | | | getting cash in your hand, it would be a discounted |
| possess in spotting value and valuable money-making | | | | amount from the face value you SETTLED for when |
| opportunities in real estate will far, Far, FAR surpass | | | | you took the mortgage. If I could get that set up |
| your ability to get all the money you need to do all | | | | for you with just a few questions and you'd have |
| these many deals you come across- UNLESS... | | | | the cash within the week-- would that be something |
| You learn how to find investor partners and find | | | | you'd now be interested in?" |
| private lenders and get your money sources in place | | | | Once you've done this it's a simple matter to connect |
| AS YOU GO ALONG and BEFORE YOU NEED THEM. | | | | them with a lender you contacted in #1 or find a |
| How to Find Investor Partners and Private Lenders | | | | buyer through an online private lender clearinghouse |
| Creative investing techniques aside, sometimes you | | | | like or calling someone more experienced or getting a |
| need real cold cash to do a deal. And sometimes it | | | | private mortgage broker involved- though they'll take |
| can be very frustrating not to have it to hand. For | | | | much of the profit. Any of these is an easy way to |
| that reason, available financing money tends to be | | | | cut yourself in the spread for a few thousand dollars |
| the biggest challenge for many real estate investors, | | | | or more, with just a little paperwork and you're doing |
| new and experienced both. If you can't get the | | | | nothing unethical. If you do this be sure to consult a |
| financing, sometimes there's just no deal. | | | | competent real estate attorney, however, because |
| John Wooden once said "Don't let what you can't do | | | | you're dealing with securities and complicated |
| stop you from doing what you CAN do". Keep that in | | | | paperwork). |
| mind now as I lay out what you should do, if for | | | | But again, the point isn't to find cash flow loans, it's |
| example you do have little money or a poor credit | | | | to find lender investors for your own deals. Just think |
| situation. And if you don't then you'll still find more | | | | of #3 above as a lucrative sideline that costs you |
| access to money than you might have ever though | | | | little but the time it takes to ask 2 questions. |
| you needed (yet) when you apply these strategies. | | | | 2) Place ads "Money wanted. Up to 16%. Short term |
| Now, I speak from experience (big time!) when I say | | | | and long term. Minimum investment (insert here |
| that lack of money and/or a negative credit situation | | | | whatever 65% of the average value of a home in |
| can be one HECK of a hurdle to leap over but with | | | | your area is) Private investors needed. Secure, |
| enough tenacity and creativity and faith you will do it. | | | | low-LTV investments collateralized against |
| Before you get all disappointed that I'm not saying it's | | | | income-producing properties. Free consultation. Call |
| easy, I want you to consider a paradigm shift in your | | | | now. |
| thinking. Today, I want you to see that it's not easy | | | | Local people are best when it comes to developing |
| but it IS simple. I want you to consider that being | | | | investor partners for real estate investing. These |
| credit challenged is not all a negative. I want you to | | | | people are going to want to meet you and see what |
| believe that this "negative" situation can have a | | | | you're about. Remember, professionals don't have to |
| powerfully positive silver lining, and that's this: | | | | have all the answers. You just have to know you |
| "As long as I KNOW I'm going to make it happen (a | | | | can get them! So use the local newspaper. Use bandit |
| deal, this business, whatever), whatever holds me | | | | signs (these are the signs you see on the side of the |
| back (poor credit and/or no money) is immaterial to | | | | road- just check your local county ordinances and |
| accomplishing my goals. In fact, I am BLESSED to | | | | attorney about possible penalties). Call the guys at |
| have this challenge (poor credit and/or no money) | | | | 866-SIGN-GUY and even if they're not available in |
| because since I KNOW I will succeed that means I | | | | your part of the country, they'll happily refer you to |
| will have successfully defeated this challenge and | | | | someone who does it where you live I bet. Also, put |
| developed skills and attributes (patience, tenacity, | | | | the above ad on the back of your business cards. |
| faith, creativity) that will take me far FURTHER than | | | | A no cost option is placing the above on the world's |
| someone for whom this (credit/money) was not a | | | | largest online free classified ads exchange, and other |
| problem. Nor will I, when I have bested this challenge | | | | classifieds online. |
| (poor credit and/or no money) ever take what I | | | | 3) Attend a private money bootcamp seminar, even |
| have gained (good credit, wealth, financial | | | | if you have to borrow or put it on a credit card or |
| independence) for granted and lose it-- as some who | | | | convince a better-off friend who is like-minded to go |
| never face challenges do." | | | | halves on the cost for two to attend. There are |
| Believe that and you cannot fail. | | | | some good options for this But it's pricey. Go to the |
| Now, as for the steps to help you right now getting | | | | training section of the HIS Real Estate website to |
| your money sources in place to do even more real | | | | learn more. |
| estate deals, let's talk about finding investor partners | | | | 4) Go to your local REIAs (real estate investor |
| and private lenders for real estate investing. | | | | associations). Don't ask these people for advice until |
| Here are a few strategies many people can do | | | | you're experienced enough not to fall for the blind |
| immediately, and others as soon as is feasible with | | | | leading the blind phenomenon that prevails at many |
| their time and money availability. If you do these | | | | of these, or have seen proof of how successful they |
| concurrently, and CONSISTENTLY, in less than a few | | | | are and how many deals they've done. Get business |
| years you can have access to more money to do | | | | cards, hand out yours. Ask the organizer to address |
| deals than you might imagine: | | | | you from the front of the room and introduce |
| 1) Go to the Courthouse and look up mortgage | | | | yourself. Let people know you're looking for money |
| documents. Go regularly because you're researching. | | | | investors, and that you are in search of investor |
| Creating the database that will get you paid. Ask | | | | partners for real estate investing. |
| around, these people (civil servants) can be | | | | 5) Improve your own credit. |
| extremely helpful if you are humble in your requests. | | | | Here are some simple, easy, and mostly free ideas |
| Just don't expect to discuss real estate investing | | | | that won't work for everyone, but will work for |
| with them, they likely don't care. What are you | | | | many: |
| looking for? You are looking for the mortgage | | | | -Hire a credit repair company (be careful there are |
| lienholder. Take a tablet of paper with you and write | | | | some scams out there) |
| down any (including mailing address) INDIVIDUAL (i.e. | | | | -Celebrate your successes and hold yourself |
| non- Wachovia, First Century Financial, Bank of | | | | accountable. Sign up for credit monitoring at 14.95/mo |
| America bank/finance institutions) names you find. | | | | through or another. |
| These are one of two types of people, people who | | | | -Get someone in your family or a close friend with |
| took back a mortgage on the sale of their own | | | | GREAT credit to add you as an "authorized user" or |
| home (owner financing)- whether it was their idea or | | | | better a "secondary user" to their high-limit, |
| not. You don't usually want these (not for gaining | | | | long-history credit cards. Tell them it will not affect |
| investors who will give you money to do deals | | | | their credit AT ALL, and they can cut up the card in |
| anyway). | | | | your name that is sent to them. You'll be surprised at |
| The second kind is a private lender, someone that | | | | how many points this can bump you up. |
| loans their money out secured by a property. These | | | | - Decrease your DTI and debt-to-credit limit ratios |
| are the ones you want. How to find the good ones? | | | | one of two ways. Pay down revolving (credit card) |
| Call them and introduce yourself, explain that you are | | | | balances to BELOW 50% of the limits. OR, and some |
| a real estate investor coming across a wealth of | | | | people never even think of this one...ask that your |
| high-ROI secure low-LTV real estate deals and in | | | | credit LIMITS be increased so that the balance owed |
| search of short-term mortgage financing from private | | | | is less than 50% of the new higher limit |
| individuals to get the deals done. | | | | - Remember, sometimes the best investor partner |
| One of three things will happen, two of which will | | | | you can have is your own credit's ability to channel |
| make you money potentially.a. They know exactly | | | | OPM |
| what you're talking about because they hold a LOT | | | | 6) Call everyone who advertises "We Buy Houses" in |
| of private mortgage notes-- not just the one you | | | | your area. Many of these investors also lend on |
| found that prompted you to call them-- and love the | | | | property as private lenders. It's a great way to find |
| high safe returns they get. These types will ask what | | | | private lenders for real estate investing. With very |
| interest rate you're offering or other savvy | | | | little change in your schedule (just being AWARE and |
| questions. These are the private lenders you want. | | | | writing it down when you see these walking or |
| Find out as much info as you can about them and | | | | driving- pull over first!) I guarantee you can create a |
| add them to your database, promising to notify them | | | | database of HUNDREDS of these in your locality-- |
| first when you have a deal in the works. Don't worry | | | | unless its extremely rural anyway-just by paying |
| if you don't have answers to all their questions. At | | | | attention to billboards and bandit signs on the side of |
| this point having their contact info and them knowing | | | | the road. This is an example of the phenomenon that |
| who you are, being "pre-pitched" is all we're | | | | when you want to make money in real estate |
| concerned about.b. They don't have any idea what | | | | without your own money it's What You Know + |
| you're talking about or think you're crazy or aren't | | | | Who You Know = What you Get. |
| interested or have no money to loan/invest.c. They | | | | 7) Realize that if you have the What You Know AND |
| know what you're talking about because they have a | | | | the Who You Know handled, What You Have right |
| seller-held mortgage on a house they sold and in fact | | | | now is NOT IMPORTANT. Do you follow me? |
| HATE that they are receiving payments over time-- | | | | |