Browsing: Financial services

Real Estate Investing Basics
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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

Business Management
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Small Businesses 3I took a test once where I had to score 100% to pass.  This was to become a licensed EMT, and there was a good reason for the 100% standard.  Since I was being measured on my knowledge of lifesaving emergency medical care, they wanted to be sure I knew every subject on the syllabus perfectly.

There’s also a 100% test for entrepreneurship, and it has three subjects.  If you pass, you have a chance of success.  If you don’t, you don’t.  The subjects aren’t hard, but you need to have perfect scores.  The scores have to be perfect because the real test is much harder than this one.

Now, don’t panic!  You can still be successful without passing all three subjects.  However, you should never try to become your own boss in a for-a for-profit enterprise.  Find another course in life.

The Entrepreneurship Test

Investor Financing & Creative REI
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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.