Turn Your Real Estate Business Into A Cash Machine

Turn Your Real Estate Business Into A Cash Machine - Using Other Peoples Money

 

Like many real estate investors, I started out investing in real estate using my own money and credit. This worked fine for the first few deals. But eventually, as I purchased 20 to 30 properties, my lender at the time, Washington Mutual, cut me off from further deals and my personal funds dried up. I had built up a great deal of real estate equity, but was locked out from doing other deals with my traditional lender and could barely pay for my own groceries.

I had to find another way to fund real estate deals or my investing career was over.

 

This is when I discovered private lenders who have funds to lend for real estate deals, but do not want the headaches and paperwork to actually manage tenants or properties. These individuals are generally middle class people, like you and me, who have some extra funds to lend. They can be retired business people, corporate executives, professionals such as doctors, lawyers, or business owners or even blue collar workers all looking for returns substantially above the 3% to 5% they get at the banks.

 

Let me first explain my definition of Private money is funding that comes from private individuals, friends, family, IRA's or any source other than institutional or conventional means. It is sometimes referred to as "Hard Money" or "Flash Cash."

 

The question I had to figure out was, "How do I find enough of these folks to run an active real estate business buying 2 to 4 houses per month?" To address this issue, I developed a marketing plan that would allow these individuals to call me and raise their hand to indicate their interest in our lending program.

 

How Do I find Private Lenders?

Well, frankly, we advertise for them. It's as simple as that! Finding private money is not nearly as difficult as people think

We Utilized Flyers, Postcards, and Speeches/Presentations: We also use flyers and postcards . Also, one of the best ways to get private lenders is to speak or present to groups. Senior citizen groups are always looking for presenters to attend their meetings and these people quite often have excess cash in CD's or IRA's that make them a natural lender

Having private capital resources is critical to the success of the serious creative real estate entrepreneur. Even if you desire to use your own money, it never hurts to have another source or two available. If your funds are tied up, and a great deal comes along, you can immediately jump on it.

If you follow some or all of the above marketing suggestions, you will have people with money seeking you out to lend you money for your next deal.

 

 

About the Author:

Mike Lautensack is the owner of full service company based in and around Philadelphia, PA. He advises real estate investors how to build wealth and financial security through hassle-free ownership of investment real estate with their This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation while it GUARANTEES you will never receive a late night emergency call, deal with a lengthy eviction proceeding or ever have to interact with an irate tenant.

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