What Kind of Loans Can I Get from a Private Lender?
Private Lenders make almost every type of real estate loan needed by BWBs seeking to build riches in income property of many different types. Thus, some of the Private Lenders your author works with make these types of funds available to BWBs:
Here are eight easy steps for you to take to get loans from Private Lenders. Be certain you understand, and take, each step to get the real estate money you need:
1. Figure how much money you need for your real estate purchase, or rehab. You MUST know the AMOUNT of money you'll need and the PURPOSE of your money request that is the real estate activities you'll use the money for.
2. Prepare a short Executive Summary telling Private-Money Lenders and investors:
(a) What type of real estate you'll invest in;
(b) Why your real estate will perform better than competing properties;
(c) Which marketing methods you intend to use to rent, or flip, the property you obtain with the money you're seeking;
(d) When your real estate project will break even and start earning money, if you're starting from a condition of zero income, such as when you build a new housing complex.
Be sure to give your Private Lenders full information on your project. Never try to hide important data from them. You'll be refused a loan faster than you can imagine! Later in this article you'll find an example of a typical Loan Submission Letter.
3. Get information on Private Lenders you might work with. Your article gives you several later in this article. And IWS, Inc., my BWB help company, has hundreds. See the back of this article for the Private Loan Money and Funding Kit. Or you can go on the Internet to (www.iws-inc.com) and see what's in this kit. If you do not have access to the Internet, try a computer in your local Public Library.
4. Contact Private Lenders making the type of real estate loan you seek. Do this by writing a letter, or sending an e-mail, telling the lender about your project. Include your Executive Summary you prepared in Step 2, previously. Send out as many letters and e-mails as you have time for. Wait until you hear from one, or more, lenders. Good data gets loans!
5. Read each loan offer carefully. Why? Because you want the best deal possible. Never settle for 2nd class when you can go 1st class! And remember, NEVER PAY FRONT MONEY FOR ANY LOAN.
6. Pick the best offer you get. Have an attorney review any agreements you must sign. No Private Lender is out to harm you. But you MUST be careful in all your dealings.
7. Arrange for the loan money to be transferred to your business bank account. Have your bank call you when it receives "good funds fromyour loan. NEVER spend your loan money before you get it!
8. Guard your loan money so no one but you can use it! Remember: "Spending other people's money is the easiest thing in the world to do. Never let others spend YOUR money! Keep tight control of it.
Getting private money is easy when you have a good real estate project that you describe well, and accurately, to prospective lenders. So take the time to understand, and write up, your project. Doing so can lead to success in getting the real estate funding you need for a profitable real estate deal. For best results when dealing with Private Lenders, remember:
Private Lenders have funds of their own or funds from investors who want to invest in profitable real estate as silent partners. The Private Lender is working alone and is not governed by strict laws, except the usury limits on the amount of interest they can charge on loans they make. Most Private Lenders rely on their personal opinion of a borrower and the borrower's real estate project when making a loan decision.
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