Alan Cowgill

This topic is near and dear to my heart. When I started my RE

career, I heard about the necessity of finding private lenders.

In fact I even found two. But then I stopped. For four years

I PROCRASTINATED. I didn’t get it!!! For four years I

continued to go to banks and jump through their hoops. I also

had used hard money lenders, but found them VERY expensive.

It wasn’t until I quit my J.O.B. and found that banks wouldn’t

loan me money that I realized that I needed to bring private

lenders into my life quickly.

When I took that step, everything changed for the better.

What are some of the advantages of using private money for

your real estate investments? Well, if you haven’t decided

whether or not to use private money, I decided to lay it on

the line here for everyone to see.

- Fast & you can buy at a discount

- No credit check

& doesn’t show up on your credit report

- Unlimited funds

- Control, you set the rules

- Help friends, family & meet a great group of people

- Get some of your profit when you buy

- Cash Flow

- Flexible

- Can make offers with confidence

- Can structure quick and more profitable exit strategies

- Saves you money

- Cheaper than a partner

- Fund the purchase of defaulted paper

- It is the foundation for a very profitable brokerage business

- Fast & you can buy at a discount

In this business when a deal comes along you have to move fast.

Many investors have watched a deal slip through their hands

while they waited for the bank to approve their loan. Once you

have private money available, that won’t happen to you! You

can make an offer knowing you can go ahead and set a closing

date. Meanwhile, your competition is wondering how you did it

so quickly!

If you go to a bank, chances are they will want tons of

paperwork, pay stubs, tax returns, etc. It’s a lot of hassle.

When you can move fast with all cash, sellers will sell you

their homes at a discount.

- No credit check & doesn’t show up on your credit report

If you have had credit problems, you can still buy houses for

cash and make a living in this business while you are cleaning

up your credit.

Private lenders don’t ask about your credit nor do they report

loans to the credit agencies.

If they do ask, you are working with the wrong folks.

- Unlimited funds

Banks will tell you how much you can borrow and the terms.

With private money, your only limitation is YOU!

- Control, you set the rules

You decide who you work with and the terms of their investment

with you. I have my own set of rules. For example, I don’t

accept investments for less than $5,000. I decide whether

I’m going to pay my Lenders monthly, quarterly, or when

the property sells. I can make the terms so that they allow

me to make the most of the investment dollars for both of us.

- Help friends, family & meet a great group of people

Many of you have heard me speak and I usually mention that my

first lender was my Mom. The interest that I pay her is much

greater than she could get on a CD! She’s delighted with the

extra money!

- Get some of your profit when you buy

I borrow a little extra when I buy to cover unseen cost and

if I don’t use it, it becomes early profit.

- Cash Flow

Some lenders won’t need monthly payments.

- Flexible

It’s your program and you can change it.

- Can make offers with confidence

I love this one and it is obvious.

- Can structure quick and more profitable exit strategies

I have a lot of exit strategies when I use private lenders.

- Saves you money

No points, prepayment penalties, down payment, hidden fees, etc.

- Cheaper than a partner

Why split your profit?

- Fund the purchase of defaulted paper

A new income stream!!!

- It is the foundation for a very profitable brokerage business

Once you have more money than you can use, you can become a

mortgage broker and loan it out.

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Still not convenced? Well, if you insist on continuing to use the following

sources for your funds after today, please understand the downsides:

1.

BANKS

- Quit your J.O.B. and they won’t loan you money

- Need down payment

- Need decent credit

- Lost time (4 ½ months to close a deal)

- No relationship

- They change rules instantly

- Mountains of paperwork

- On credit report

- Provide stack of documents

- Jump through their hoops

- You’re out of control

- Monthly payments

- No pre-qualifying the property

Let’s face it, we buy some really nasty stuff! Beyond the

trash and that horrible smell (which Ron LeGrand calls the

smell of money), some of the houses we buy don’t have roofs,

or windows, or furnaces, or plumbing. We buy garbage and

make it gorgeous. Banks don’t seem to understand that. I’ve

actually had a bank refuse to loan me money on a house for

4-1/2 months because it didn’t have a furnace. Gee I thought

that was the idea as a rehabber. To buy an ugly stinky house

and fix it.

With private money I buy what I want. I know how to rehab

about anything. That’s my decision, not someone else’s.

2.

HARD MONEY LENDERS

- They are very expensive

- Maybe your credit score is important

- Need down payment with some lenders

- Only one (1) exit strategy

- You’re out of control

- No up-front fix up (Rehab $$$)

3.

LINE OF CREDIT

- Monthly payments

- Limited $$$

- Can be called back and you’re cut off

- Out of control

4.

YOUR OWN MONEY & CREDIT CARDS

- Limited $$$

- Could make more by loaning it out (& OPM @ 12%)

Use Private Lenders and avoid all of these problems!

One final note on building relationships…

I appreciate my lenders. I’ve met some great folks. These

strong relationships built on trust make your business grow,

not to mention make your life more enjoyable. Do you actually

know anyone at your bank or are you just a number to them?

There are some exceptions, of course. Actually, I loved my

banker so much I married her:)

The bottom line is that now you know the facts. Don’t

PROCRASTINATE like I did. Go create unlimited wealth and live

the life you want!

Alan Cowgill is a speaker, author, and real estate entrepreneur. Alan has bought or sold over 200 investment properties. His step-by-step system “Private Lending Made Easy” teaches others to find private lenders. Contact Alan at 937-390-0816 or 866-831-3540. For a FREE audio go to www.PrivateLendingMadeEasy.com