Private Money Lender How To Get
Them And
How To Keep Them Long Term
By Michel Lautensack
The author has permitted the reprinting and redistribution of this
article.
Finding a Private Money Lender is an essential part of any real estate
investor’s business. In the old days (pre 2006) you could
easily get a mortgage or even hard money loan simply by showing up in
the lenders office and filling out an application. If you could walk
and talk you qualified for a loan.
But today in the post credit-bubble market those days are over. Getting
money for your real estate investing business is much more difficult
and likely to get even more difficult as the credit markets sort things
out. So how do you get money for your real estate investment business
The answer is a private money lender.
One of the keys to finding a good private money lender is determining
if they have similar goals and objectives as yours. You need to
understand what they are trying to achieve and if your private lending
program fits their needs. For example, if the private money lender
wants an investment for a 10 year period, but you plan on doing quick
flips every 6 months, it will not be a good long-term relationship. You
and your private money lender need to have similar goals for a good
long-term relationship that will result in repeat business.
So how do you determine if you and the potential private money lender
have similar goals. You need to discuss your plan and ask questions
similar to a job interview. We would recommend a series of questions
similar to those listed below. Obviously, you can modified these
questions to fit your personality, but the information you get will go
a long way in determining if this is a person you want to do business
with.
Important Questions to Ask
• How much do you have in liquid funds
• Do you have other monies you might want to consider for an
investment program that pays 9% to 15% and secured by local real estate
• What type of investments are you in right now
• How much are they making on your current investments
• How long do you want your money invested for and do you have
plans coming up that will require your principal back
• How available is your money or is it tied up in investments
that are not readily accessible
• Are you a “Qualified Investor” (person
must either have a net worth of about a million dollars or have an
annual income in excess of $200,000)
• Do you know anything about real estate investing
• When would like to start investing
Asking these questions will flush out how close your goals are and will
foster a good long-term relationship.
Do you want to learn more about Private Lending and how it can
transform your real estate investing business then please click here =
httprealestatewealthtoday.comFREE-eBook.html
If
you would like to take advantage of the market and learn how to invest
in real estate and you are local to the Dallas Fort Worth area, I know
a really great teacher and mentor here in Arlington Texas. Please take
a look at his web site: DennisJHenson.com,
Dennis has a great Mentoring and training program, I know because I am
one of his former students. I learned a lot from his one on one
teaching technique. - Michael Harman 817-457-7572
mchfun.business@gmail.com
http://www.biggerpockets.com/articles/