As a private lender, I see deals and fund deals regularly. And there are times that a borrower isn’t able to hold up his end of the deal and this can either be disastrous or turn into a great deal for us. This is the very reason why you loan or borrow at 65-70% of the after-repair value. This way, you can turn a private lender loan into a great deal with cash flow and equity.
Raising private capital for your real estate investments is a highly detailed process that requires relationship-building skills. Once you’ve established a connection with a potential private lender, it’s time to implement Josh Cantwell’s detailed 14-step follow up process for educating a passive investor and encouraging them to invest their capital in your properties.
Building strong relationships with private lenders is important for every real estate investor. If you’ve already begun the process, and are ready to strengthen the connections you’ve created, find out how to develop and implement an engaging and effective multi-channel marketing campaign to keep you top of mind with your private money lenders.
Finding your next private lender to fund your property deal might be easier than you think. To help you get started, Josh Cantwell shares his specific strategies for finding 3 types of private investors: passive real estate investors, corporate “lifers,” and ecommerce business owners.
Securing private capital for your real estate investments is a process that requires a good deal of research and knowledge. But, if you position your offer an irresistibly tempting way, you’ll have no problem finding the right private lenders for your properties.
Putting your hard-earned money into stocks, bonds, mutual funds, and other potentially volatile investments can often lead to an uncertain return on your investment. Josh Cantwell explains how real estate investing – which typically has a more certain ROI and usually involves less financial risk – might be a more beneficial alternative to stock market investing strategies, in many cases.
Providing funding for real estate deals is one of the smartest ways that private lenders can make a large (and usually predictable) return on their investment. As an active real estate investor, this knowledge can help you make irresistible property deal offers to passive investors. Learn exactly how to do so in Part 3 of the Funding Equals Freedom series.
Conventional banks, hard money lenders, and other institutional lenders often don’t provide the best financing options for real estate investors. Between the origination points, fees, and monthly-only interest payments, the negative impact on an investor’s profits can be substantial. Find out the disadvantages of institutional lending options, as compared to raising private capital.
For real estate investors, private funding equals freedom. Compared to traditional financing options (bank or institutional loans), private money allows you the flexibility to purchase properties quickly and gives you greater freedom to do what you’d like with them. In this series, Josh Cantwell explains his step-by-step process for finding private lenders and working with private money.