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hard money

Financing Real Estate

How to Generate Private Money: Steps 3 & 4 of 6

by Ryan Moeller | September 8, 2009

Finding financing is the biggest challenge for most investors. I previously wrote How to Generate Private Money, listing the 6 steps in brief. Over my next few posts I will break down each of these steps in detail; I will cover steps 3 & 4 today.

Step 3: Find a great deal, illustrate a win-win, the deal and the risk

Goal: Inform the potential investor about the deal, the risk and the opportunity

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Financing Real Estate

Understanding Private Lending – Part 3: How to Find Private Lenders and Get Funded

by Justin Pierce | August 16, 2009

Oh have faith yea disciples of the deal; it is possible to find a lender who will loan every penny of the purchase price of a property. Just like it is possible to find a property that can be bought with no money down, but know that both endeavors can be laborious. Real estate is one of the few business games where the ante is affordable to anyone with a little gusto, and success is possible for those with a lot of diligence and perseverance.

Where to Find Private lenders

  1. Classifieds advertising sites such as Craigslist.com. Look under services and financials.
  2. Do an internet search using any search engine type in “hard money” or “private money loans” etc.
  3. Check your local newspaper classifieds under money to lend or finance.
  4. Go to your Real Estate Investment Groups meetings.
  5. Patrol real estate investment websites like BiggerPockets.com
  6. Network with other real estate investors to see who they use.
  7. If all else fails you can even call mortgage brokers.

Researching Lenders

Search far and wide and you’ll find a couple of good private lenders. There are no certifying bodies for private money and there is no central association. Anyone with a lot of money can essentially lend it out, so sometimes you may run into a lender who is not legitimate.

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Real Estate

Understanding Private Lending: Interview with a Private Lender Part 2

by Justin Pierce | August 2, 2009

Last week I spoke with a private lender who loaned her own money and brokered here own loans. She operates in Northern Virginia and takes great interest in the borrower. Her operation is small and she does not have any time or desire to foreclose on a property thus she tries to ensure she will not have to by dealing with experience investors who have assets and usually money to put into the deal.

To get a little variation on this topic I spoke with a different flavor of private lender. David Williams is a hard money lender located in Utah. The differences between these lenders are more than just their geographical location.

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Real Estate

Understanding Private Money: An Interview with a Private Lender, Part 1

by Justin Pierce | July 26, 2009

There seems to be a lot of curiosity, myth, and maybe even ignorance when it comes to private lenders. So, hoping to shed some light on the subject, I had a candid conversation with a private lender with whom I’ve worked with, and respect. She did not want to have all of her information listed because she doesn’t want to get bombarded with phone calls. So, I will just refer to her as Patty. Patty does want to hear from good investors, however, and I’ll tell you how to get in touch with her later.

Patty has been lending for about 10 years. She is unique in the industry because she is a trained lawyer with extensive construction experience. The money she lends is mostly her own, but she does use some money from friends and family, on occasion. When you borrow money from her she drafts all of the loan documents and the deed of trust herself; there is no third party lawyer involved, except for the title company’s lawyer. She is literally a one stop shop for a private loan.

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Flipping Houses

My Hard Money Buying Worksheet – Yours Free!

by Rob K. Blake | November 29, 2008

I have the worksheet I use of a ‘quick and dirty’ hard money purchase analysis and I thought I’d share it with you…download here! First if you don’t know much about worksheets, don’t worry; you simply input a few numbers at the top, and the worksheet automatically calculates the fields without your assistance. [...]

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Financing Real Estate

Financing Foreclosures

by Troy Schuricht | June 19, 2008

It is safe to say that real estate is hot once again. Unfortunately this new hot market is only available to professional real estate investors and very savvy borrowers.   Foreclosures have become the latest and greatest in most market places. Deals on homes can be as low as fifty cents on the [...]

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Financing Real Estate

Construction Loans? When And Why To Use Them

by Troy Schuricht | April 24, 2008

Why use a Construction Loan?
Building your dream home or rehabbing your investment properties, though exciting, may present many challenges. Although you may be familiar with the traditional mortgage process, a construction loan includes additional elements of risk. In a typical construction project, the contractor will request funds when work is completed. Many times a homeowner [...]

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Commentary

Under Analysis…the Latest from the Real Estate Investment Style of Investorino

by Milton B. Yates | April 15, 2008

If I could just take a few moments and vent about my frustrations with real estate investors who do not follow formulas and do not stick with systems. Sheesh! If it isn’t one bad deal working it’s three bad deals working. Are times that bad that you have to reach for a [...]

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Flipping Houses

You Found A Great Rehab Deal. Now, How Do You Fund It?

by Richard Warren | March 10, 2008

You’ve been hunting for that perfect rehab deal like a Neanderthal stalking a mighty Mastodon. You’re sure you’ve found it. The after repair value and renovation costs will allow for a hefty profit. You should even be able to set a price that will result in a quick sale when the rehab is complete. There [...]

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Real Estate Investing

How Real Estate Attorneys Can Save Investors Money. Beware of Legalized Theft!

by Jim Watkins | October 11, 2007

I closed on an investment house in February this year. I was scheduled to close at 4:30pm on a Friday. When it reached 8:00pm and I still had not signed, I told the escrow agent to call me when she “got it right.” The following Monday, I went in after the mess had been cleared [...]

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