If you’re intrigued by the idea of becoming a real estate investor, but don’t have the capital to get started, it’s important that you become informed on the topic of private money. Private money refers to any loan taken through a non-bank. This can be a relative, a friend, or even a fellow investor. But if you’re new to the world of private money, you probably have a lot of questions about how to get started and secure a private money deal.
That’s why we’ve put together a comprehensive Private Money series, in video form! The Private Money Series will teach you everything you need to know about private money lenders, interest rates, and strategies. This post will walk you through the entire series, step-by-step. If you’re interested in securing private money, be sure to bookmark this post and take great notes!
Part 1: How to Create Your Private Money Credibility One Sheet In the first video in our Private Money Series, we're talking about the most important piece of the puzzle—setting up your credibility one sheet. The credibility private money one sheet will be the most effective tool in your presentation to potential lenders. In this video, we'll cover the specific items it should contain along with the best way to present the one sheet to investors.
Part 2: How to Get Private Financing for Real Estate Many investors are fearful of the private money world—so this video was created in order to demystify private money! You’ll learn three simple steps for approaching a private money lender. We’re sharing a foolproof system for setting up a meeting with an investor, including the exact script I’ve used to secure private money!
Part 3: Private Lenders Interest Rates The beauty of private money is that there are no hard and fast rules. However, that can make it difficult to determine how to make an offer with a private money lender. In this installment of our Private Money Series, You’ll learn four different ways to structure a private money loan, and how to incentivize lenders to continue to invest with you. In order to construct a private note, the deal must be mutually beneficial: investors want to make money! If you've ever wondered how to compensate a private investor, this video is for you.
Part 4: When Should You Pay Back a Private Lender? In this installment of the series, we’re discussing determining a pay back structure. When you’re borrowing money, it’s your responsibility to make sure your lender gets paid back no matter what. Even if you trust that commitment, it’s imperative that the lender feels safe and secure in your partnership. In this video, you’ll learn six different options you can present to your private money lender to convince them that their money is safe in your real estate investment, and that they will get paid back in a timely manner.
Part 5: How Much Private Money Will You Need? When you are making a deal with a private lender, it’s critical to be clear and honest about how much money you’ll need for the project. However, if it’s your first deal, it can be difficult to properly make an estimate. In this video, you’ll discover you six specific factors you should analyze and present to your private lender. You’ll learn how to include the correct information, without being superfluous on your private lending documents.
Part 6: How to Find Private Lenders Part six of the series details exactly where and how to find private lenders! This video highlights three key areas you can use to find private money for your real estate investment. I’ll talk about making interpersonal connections, the importance of attending meetings, and more! You’ll learn how to make connections with other real estate investors and industry experts. Doing so will allow you to go out there and get private financing for your investing venture.
Part 7: How to Handle a Private Loan Bail Out The last video in our Private Money Series is all about the worst case scenario. You’ll learn about how to prepare for the worst in your private money transaction. I’ll talk about cash flow problems, changes in the real estate market, and how to assure your lender that you’re serious about your business relationship.
Want more private money info? Be sure to check out Getting the Money by Susan Lassiter-Lyons. Use our link and get the book free—just pay shipping!