About
By Alan CowgillGetting money to do real estate deals has nothing to do with going to a bank, filling out an application, putting up down payments or waiting to be approved. Smart investors won’t go near banks that want to control their lives and tell them what they can or can’t qualify to borrow.
You Can Get All The Money You Want From People, Not Banks….And Get It Faster, Easier And There’s No Limit To How Much You Can Borrow.
When I quit my full-time job of 17 years in November of 2001, I immediately faced the nagging problem of “How do I fund my real estate deals?” Banks were not going to loan me money any more, because in their world, I was not a good risk. I needed to find private lenders and find them fast.
I had neglected this part of my real estate business and now I was in trouble. It was now the #1 priority for me and I needed to solve it. 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 and I might even go broke….
I solved the problem when I brought private lenders into my life things changed for the better and haven’t looked back since.
Forget banks! Private lenders are everyday people that have money to invest. Their money is setting in a low paying bank certificate-of-deposits or in the risky stock market. These private funds afford you the quickest amount of capital with the greatest of ease.
Many real estate investors let opportunities pass them by because they don’t have access to the cash required. They actually throw away profits because they don’t have the money to invest. You’ll never get ahead that way! Private lenders allow you to create your own Private Bank of funds for your real estate deals.
Take a look at a few of my recent deals:
- Short sale deal: $59,900 discounted to $25,000 - net $31,945
- “Subject to” deal: $85,000 “subject to” for $71,000 + $1,264 repairs – net $12,736
- Wholesale deal: $28,000 purchased for $22,000 – net $6,000
- Rehab deal: $51,000 purchased for $15,000 plus $12,793 rehab – net $23,207
That’s $73,888 more on 4 deals, because I had
Private Lenders!
On these deals, I purchased the properties with cash from private individuals. I paid them 15% simple interest for the use of their money (you can borrow much cheaper now ). I got the properties at a discount because I could close fast with cash.
No down payment, no points, low closing cost and none of my own money.
Just think what you could earn. If you average even one or two additional deals per month, the profits can be astounding. The typical profit for a single deal is $5,000 to $35,000, if you include the wholesale deals that can come your way, in addition to all the other deals that you can do…. Now, consider this,
What could you do with an additional
$5,000 per month?
And, in real estate, timing is everything. Cash separates those who dabble from those who become rich. The number one key to having enormous stores of cash at your disposal is having private lenders .
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“It is the availability, not the cost, of cash that is important.” Ron LeGrand Real Estate Guru |
This one deal resulted in a profit of $31,945.
That’s $31,945 I would have never had the opportunity to make if I didn’t have my private lenders’ funds readily available.
I have perfected a method of finding private lenders by holding lender luncheons. In just my 1 st two luncheons, I amassed over a million dollars of private money. And I realized that group meetings can create such enthusiasm that lenders will literally compete with each other to loan you their money!
In 1995, after a quarter century working in the corporate world, I was broke and living in a small (2) bedroom apartment. One night I made the decision to become a real estate investor and in 2001 I left that corporate world and became a full-time real estate investor.
I have appeared on a nationwide infomercial, served as an elected official on the Clark County Property Management Association. And speak on the topics of “Investing for the Beginning Real Estate Investor” and finding “Private Lenders”. Since 1995, I have bought and sold over 100 investment properties and now, with private money, I am really cranking it up. My company, Integrity Home Buyers, Inc., uses private lenders to purchase and rehab single family and small multi-family properties in the Springfield, Ohio area.
What Private Money can do for you:
- Borrow money with no monthly payments to boost your cash flow.
- Get all the money you want to do “subject to” deals that require money to make up back payments and/or do carpet & paint so they will sell fast.
- Create an army of people who’d love to be your partner in bigger deals when they come along.
- Create your own PRIVATE BANK of nearly LIMITLESS FUNDS.
- Buy every home with cash using none of your own money.
- Purchase properties with no points or pre-payment penalties EVER.
- Walk out of your closings when you buy with money in your pocket. Every time.
- Increase your profits and eliminate cash flow problems.
Now, if you’re a person that is satisfied with waiting for bank loans, missing opportunities, and always worrying about money – then forget about this. But if you’re like most people, you want to rake in money, and earn the lifestyle you’ve always dreamed of…. then don’t miss this opportunity.
There are (2) ways to raise private money:
- Brokers who find private lenders
- Find your own.
I have used mortgage brokers too and they can be great if you don’t have your own private lenders. But, they are also expensive. It could cost you $5,000 off of every deal. And many times you have to have 15% down payment too! I look at hard moneylenders like using a credit card. Quick and easy but every time I use them, it costs me a chunk of money.
I point this out because, with private lenders you set the rules . There are no points or pre-payment penalties or down payment. I have used hard moneylenders and I use private lenders. Without question, your life will be better with your own private lenders because you will keep more of the profits and be in control …..
Incidentally, the average mortgage broker charges 5% points on just one deal. On $30,000 that is $1,500. Just think about what you’ll save the very first loan you borrow from your own lenders rather than using a mortgage broker.
The system cost is minimal and the lasting effects will serve you for life.
And what is it worth to you to do one or two or more deals a month ? If the average profit in one deal is $5,000 to $35,000, how much do you think you can afford to pay to learn how to add this amount of additional revenue to your business?