Whether you have lots of money and great credit starting out, or no money and lousy credit starting out, either way, if you truly want to make a serious bid at building a property empire then you cannot discount the importance of learning how to find investor partners and equally how to find private lenders to help fund your real estate investing. As you go along in your real estate investing career, as long as you pay attention and get educated about real estate investing, you will find that the skill you possess in spotting value and valuable money-making opportunities in real estate will far, Far, FAR surpass your ability to get all the money you need to do all these many deals you come across- UNLESS…
You learn how to find investor partners and find private lenders and get your money sources in place AS YOU GO ALONG and BEFORE YOU NEED THEM.
How to Find Investor Partners and Private Lenders
Creative investing techniques aside, sometimes you need real cold cash to do a deal. And sometimes it can be very frustrating not to have it to hand. For that reason, available financing money tends to be the biggest challenge for many real estate investors, new and experienced both. If you can’t get the financing, sometimes there’s just no deal.
John Wooden once said “Don’t let what you can’t do stop you from doing what you CAN do”. Keep that in mind now as I lay out what you should do, if for example you do have little money or a poor credit situation. And if you don’t then you’ll still find more access to money than you might have ever though you needed (yet) when you apply these strategies.
Now, I speak from experience (big time!) when I say that lack of money and/or a negative credit situation can be one HECK of a hurdle to leap over but with enough tenacity and creativity and faith you will do it.
Before you get all disappointed that I’m not saying it’s easy, I want you to consider a paradigm shift in your thinking. Today, I want you to see that it’s not easy but it IS simple. I want you to consider that being credit challenged is not all a negative. I want you to believe that this “negative” situation can have a powerfully positive silver lining, and that’s this:
“As long as I KNOW I’m going to make it happen (a deal, this business, whatever), whatever holds me back (poor credit and/or no money) is immaterial to accomplishing my goals. In fact, I am BLESSED to have this challenge (poor credit and/or no money) because since I KNOW I will succeed that means I will have successfully defeated this challenge and developed skills and attributes (patience, tenacity, faith, creativity) that will take me far FURTHER than someone for whom this (credit/money) was not a problem. Nor will I, when I have bested this challenge (poor credit and/or no money) ever take what I have gained (good credit, wealth, financial independence) for granted and lose it– as some who never face challenges do.”
Believe that and you cannot fail.
Now, as for the steps to help you right now getting your money sources in place to do even more real estate deals, let’s talk about finding investor partners and private lenders for real estate investing.
Here are a few strategies many people can do immediately, and others as soon as is feasible with their time and money availability. If you do these concurrently, and CONSISTENTLY, in less than a few years you can have access to more money to do deals than you might imagine:
1) Go to the Courthouse and look up mortgage documents. Go regularly because you’re researching. Creating the database that will get you paid. Ask around, these people (civil servants) can be extremely helpful if you are humble in your requests. Just don’t expect to discuss real estate investing with them, they likely don’t care. What are you looking for? You are looking for the mortgage lienholder. Take a tablet of paper with you and write down any (including mailing address) INDIVIDUAL (i.e. non- Wachovia, First Century Financial, Bank of America bank/finance institutions) names you find. These are one of two types of people, people who took back a mortgage on the sale of their own home (owner financing)- whether it was their idea or not. You don’t usually want these (not for gaining investors who will give you money to do deals anyway).
The second kind is a private lender, someone that loans their money out secured by a property. These are the ones you want. How to find the good ones? Call them and introduce yourself, explain that you are a real estate investor coming across a wealth of high-ROI secure low-LTV real estate deals and in search of short-term mortgage financing from private individuals to get the deals done.
One of three things will happen, two of which will make you money potentially.
a. They know exactly what you’re talking about because they hold a LOT of private mortgage notes– not just the one you found that prompted you to call them– and love the high safe returns they get. These types will ask what interest rate you’re offering or other savvy questions. These are the private lenders you want. Find out as much info as you can about them and add them to your database, promising to notify them first when you have a deal in the works. Don’t worry if you don’t have answers to all their questions. At this point having their contact info and them knowing who you are, being “pre-pitched” is all we’re concerned about. klimt cairnhill