Alan Cowgill

My burning desire to finally become a full-time real estate

investor had come to fruition when I quit my full-time job of

17 years in November of 2001. With this career change, I

immediately needed to face the nagging problem of “Where do I

find private investors to fund my real estate deals?”

Without a serious influx of cash in my business to acquire and

rehab properties, I would not be able to take my business to

the next level.

This was when I developed the idea to hold an investor luncheon

to present my program to local investors. When I started

searching to find how to proceed, I found there was very little

information out there about this topic. So, I had to develop

my own system.

After my 1st two investor luncheons, I had over $1 million

dollars to go buy houses. So I know this works.

I decided to produce a newsletter because I realize there

is a huge need by most RE investors to learn about this

concept. I am excited about this topic and I want to help you

avoid the pain I experienced in my RE career by not bringing

private investors into my life early on.

So let’s get started.

I started my business by using banks, savings, credit cards,

lines of credit, creative techniques with sellers (like land

contracts or lease/options), and partners. But, once I was

self-employed, I was concerned that it was going to be harder

to get loans to purchase properties.

I had always been unhappy about how long the banks take to get

the job done. I had it take 4-1/2 months on a house without

a furnace. The bank didn’t know if they wanted to make a loan

on that kind of house but that is what my rehab business is

all about. Buy ‘em ugly, cheap and fix ‘em.

Just think, if I would have used a private lender on the

above deal, I could have bought, fixed & sold the house and

pocketed $20,000 by the time I got to the closing table

with the bank.

With private investors, I have the funds available all the

time. When a good deal comes my way, I can grab it

because I know the money is waiting for me. While my

competitors are scrambling around applying at the bank, I’ve

made an offer and closed the deal. My rehab crew is all over

the property like ants before the competition knows what

happened. I love having private investors for my business.

So, a major benefit is SPEED to purchase a property.

Let’s look at another major benefit of having private lenders.

My first private lender was my Mother. My Dad had passed away

in 1989 and Mom had insurance money. She proudly invested it

on bank certificates of deposit (CDs).

When I became a real estate investor, I learned about finding

private lenders and so I talked to Mom about it. She loaned

me $5,000 and received 10% interest in return. I paid her

monthly just like her bank did with her CDs. She was delighted

and so was I.

As my use of private investors increased, I learned that some

of them didn’t need monthly payments and so I started to

structure my loans so there was no payment until the property

is sold.

This is a huge benefit… Think about what this has done to

improve my monthly cash flow.

Now my Mom will always get monthly payments from me because

she is retired and depends on that income BUT anyone who can

wait on their money, I’ll let the money accrue.

So the second major benefit is improved CASH FLOW because you

don’t have to make monthly mortgage payments but just let the

interest accrue.

Important tips

Other benefits to having private lenders include:

- No down payments

- No points to pay like you have with mortgage brokers

- Reduced closing cost

- None of your own money needed

- No prepayment penalty

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