So You Need Money For Real Estate Investments - Here is How to Use Private Lenders For Money!

If you have tried to get a traditional mortgage, or even a hard money loan, to finance your real estate investments you know how hard it is to get loans in today's post-credit bubble market. It is even harder to get "no money down" loans for your real estate investing business. If you are using traditional mortgage or hard money loans they can take two or three months to close. The problem you will quickly discover is that sellers are not willing to wait that long and get angry at having to continuously extend their contracts or wait for your loan approval.

Banks and mortgage lenders view mortgage loans to real estate investors as a higher risk than loans to home owners. They believe if the home owner is not living in the property and if trouble hits an investor will opt to pay their own home mortgage first and only pay for the investment loan if they can afford to make the payments. This puts the bank in a very poor position. As a result, most banks are looking for real estate investors to put up 30% to 50% down payment to protect their interest in time of trouble. VERY few investors have this kind of cash so it is very difficult or impossible to do deals with traditional mortgage or hard money loans.

Real estate investors still are not advised to use their own money to do their deals. Even if you have 30-50% saved for a down payment on your investment property, most real estate guru's warn, NEVER spend your own money on real estate investments. Most beginners start their investment career saving up for a down payment, but the fact is, serious real estate investors do not use their own money to do real estate deals.

So how do you buy real estate investments if it is so hard to get a loan and you do not want me to use my money to apply to a down payment?

Buying real estate without using your own money IS possible, and it's not difficult. With the right kind of deal, investment property can be purchased without a single penny of your own money.

Enter the world of Private Lenders... Private lenders are individuals with money to lend for investment purposes. They may or may not be wealthy, but they do have excess cash or assets available over and above what they need to live on. These individuals are willing to lend for a higher return than they can get with bank CD's or money markets. There are no limits on the number of private lenders you can have or the number of real estate deals you can do using private money.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here http://realestatewealthtoday.com/FREE-eBook.html


Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit.

6 Steps to Develop a Private Lending Program For Real Estate Investors

Wow, has the real estate market changed in 2009! Real estate investors have been shut out of traditional mortgage money unless you have a 9000 credit score and a 50 year work history without missing one day of work (ok enough of the weak humor but you get the idea). Even hard money loans are HARD to get as they have all gone out business.

But just as the mortgage market is shunning the real estate investor - we are starting to see signs that the real estate marketing is starting to bottom and home prices have even gone up in some markets.

So how do you take advantage of this buying opportunity if you can not get mortgage money from traditional sources?

Private lending is the answer. You can start borrowing money from private lenders to fund your real estate investments. Raising private money allows you to take advantage of the low prices without ever using any of your own cash or personal credit.

There are several significant benefits and advantages of private money lending compared to mortgage money or hard money lending.

First, you can begin buying more houses for "all cash" offers and drive significant discounts from sellers who are highly motivate to get cash versus waiting and hoping another buyer will get a mortgage approval.

Second, very simple paperwork with a typical private lender transaction only requires 3 or 4 documents with less than 20 pages.

Third, you control the terms and conditions under which you will borrow money and the lender will lend. You tell the lenders what rates of interest you will pay, how long the term is and all the other conditions are set by you not a bank or hard money lender.

Finally, you can turn many non-deals with no equity into super profitable deals with substantial equity by paying off existing debt at a discount... using private money.

Six Steps to develop a private money program for real estate investors:
  1. Develop your private lending program and the terms and conditions under which you will borrow money and repay your lenders
  2. Build your info/credibility kit to establish yourself as real estate investing expert
  3. Create a marketing plan with 5 to 10 different marketing techniques to attract potential private lenders
  4. Create your group or one-on-one presentation
  5. Schedule group or one-on-one meetings and follow-up with potential lenders
  6. Present and close deals with your potential lenders
Given the new market realities, private lending may be the only option if you want to buy and own real estate investments and take advantage of the low prices.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit

Discover How to Use Post-It Notes to Get Sellers Calling in Droves

As we talked about, post-it notes come in two sizes - large and small. They are different style templates. One is landscape and one is portrait, so you get a sample of both.

Importance of the Headline

The headline is "Attention Homeowner." It's got a big notice going the opposite way. Again, that's the FedEx and UPS concept. I don't have the word FedEx or UPS on here. We're not going to get in trouble with those organizations. If you look at this from afar I guarantee that's the first thing you're going to think that you've got a FedEx package.

The headline says, "Our Company is seeking to purchase several homes in your neighborhood..." That leads them on to read. "Are you looking to sell soon? Your home has been identified as a good candidate for our real estate buying needs.

Why the Seller Should Work With You

"When we become your buyer we can buy your house as-is for a fair price on the date of your choice. There are no commissions to pay. You'll get immediate debt relief. You'll get fast cash and a hassle free sale. You're putting your house on the market without fixing it up. We're professional home buyers. We're not listing with an agent. We can work with existing loans and we have private funds that require no bank financing. This allows us to offer you a quick and easy sale."

How to Get a Response

Then you are into the response mechanism. "If you would like to listen to a 24 hour recorded message, here's the number to call." Guys, the very first call we want is into pre-recorded voicemail, so you should have that. They can choose to go to my website and get a free special report, and that can talk about some of the special benefits. That's one of the post-it notes.

The other one is more of a bullet point style instead of paragraph style. It has "We buy houses fast, all cash, as is, if you need to sell quickly, behind on payments, facing foreclosure, divorce." It gives a series of bullet points and then, "You can get more details at..." and your phone number there and a website.

Printing

What you would do once you've picked a printer and have changed these around, you would upload these to your printer. Different printers have different ways, but there should be a way to upload these onto the printer site. Be sure you've proofed it and made sure it's right, fits, and all that.

Typically at some point they will ask you to initial a proof and then you would order your 20,000, 25,000, or 50,000 post-it notes. They'll come to you a few days later in a box with packets of 50 to 100 post-it notes per pack.

Once you've got them, you can start thinking about distribution. You don't have to distribute them all immediately. You can do them in segments. You can do 1,000 a week. Have one or two kids go out and distribute them at 1,000 per week.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog