Just a note on Notes-Mortgages

Banks, Mortgage Brokers, Private Lenders, Hardmoney Lenders, Owner Financing and Options to Purchase are all options to purchase real estate.

Banks allow you to put your money into their business by way of deposits such as savings and checking accounts and they make various types of loans.

Mortgage Brokers do not "hold" your money in savings or checking accounts they only loan money. They can represent one lender or multiple lenders.

Private Lenders may be family or friends.

Hardmoney Lenders are individuals or a group of individuals that have decided to lend money to people to purchase real estate. They set their parameters on to whom they will lend and under what circumstances. Usually they charge a higher interest rate than a mortgage broker or a bank but at least you have found someone who WILL lend money to you.

Owner Financing means the current owner will act like a bank and allow you to make payments to them for a stated amount of time.

Option to Purchase means you have the option to purchase the property at some point in the future. You do pay an option fee for the right to purchase within a certain amount of time or if you choose not to purchase you loose your option money.

Remember when you go to borrow money you are PAYING someone for a product, therefore you are there to interview them to see if their product is right for you! If it isn't or if they don't want to lend to you don't think that all lenders are going to view you the same way, go to as many lenders as you need to until you find a yes!

Sometimes a lenders portfolio (meaning the loans they already have out) is heavy in one type of loan and therefore they don't really want to loan anymore of the same kinds of loans right now so they may deny you or make it more expensive to borrow for that type of loan. So if you go somewhere else and their portfolio isn't heavy in that type of loan they may say yes!

Keep on meeting new lenders, keep good notes about the various products they offer and don't wait until you need their money before you speak with them. Make an appointment and let them know you are doing your due diligence and researching their products now for future investing.