successful real estate – Hard Money

November 13, 2012
Shawn Molem
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Private Money Loans for Properties With Out-Of-State Owners

Tags : private money lenders private money loans real estate investor successful real estate

If you really want to be successful as a real estate investor, the most important factor is finding good deals. If you can’t find a good deal, your chances of securing a private money loan is very less because this is extremely important in the eyes of real hard money lenders. If you want to find good deals, you should consider it as fishing. There are different ways of fishing. Either you can fish with one pole or you can fish by using a long line and a bunch of hooks.

The same goes for finding properties. There isn’t just one famous way of finding good properties. You should try a horde of different strategies. You will definitely need a wide range of hooks inside water at the same time. One of them will certainly hit at something useful. You shouldn’t use a single fishing pole but a long pole with several hooks. The ideas I’m going to discuss here will not guarantee you private money loans but they are good enough to get you financing from private money lenders.

Finding properties of out-of-state owners is one of the best ideas for making you successful as a real estate investor.

There are many people who have to move to a different city or country because of their careers or personal requirements. All these type of people have one thing in common. They are willing to sell their property as soon as possible, so they can move to their new house in a new place.

On the other hand, there are people who have bought a property as an investment. But later, they realized that it didn’t turn out to be as they’ve thought. Management of these kinds of properties from far is another problem

There is another type of out-of-state owner property that has been left by your parents or grandparents after their death. The kids or grandchildren who are living in other parts of the country would like to sell that property in a jiffy to distribute their shares

All these things makes a motivated seller who is willing to sell their properties as soon as possible. It is your job to find a motivated seller like this because this is one of the few places where you can make good profit margins. The lenders would also be able to see that and they’ll fund you private money loans easily.

Two things can help you here:

1. Finding a motivated seller

2. Finding properties that are in need of repairs.

You can also find a list of out-of-state owners online or at the county recorder office. You can purchase the list or you can look at the tax roll and check the mailing address of tax notice. If the mailing address is different from the address of the property, this means that the property belongs to out-of-state owner.

You should start a postcard or mail campaign to out-of-state owners, who have a property and who are living out of that particular state where the property is located. You should try to get in touch with them immediately, so they are not approached by any other buyer.

This could turn out to be fruitful for you because these motivated sellers are already waiting for different offers and these campaigns can help them in finding some really good deals.

All the out-of-state owner properties are considered to be good opportunities because they can be bought at fairly low prices as compared to the normal deals because the sellers want to unload them in a jiffy. These properties hold good opportunities for investors as well as private money lenders.

September 13, 2012
Shawn Molem
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Hard Money Lending Success – It’s All About Relationships

For those who are new to real estate investing, it often seems as though there’s an “inner circle” of deal makers-the people who know where the deals are, how to get the money to buy them, and always get there first. It’s no accident that the same real estate investors work with the same hard money lenders and private lenders again and again. They’ve built a successful relationship based on helping each other to make money-and anyone can do this!

Seasoned pros who have built incredible wealth through investing in real estate know that their relationships with hard money lenders is key to finding the good deals before everyone else, and having a ready source of private money to borrow to purchase those properties.
Here’s how even the biggest novice at real estate investing can forge relationships that lead to more and more successful real estate transactions:

Have lunch with your hard money lender. Once you have found a good, seasoned hard money lender, invite him or her to lunch once every few weeks. And you can do this with a few lenders. Get to know them personally, as well as their restaurant preferences, and always pick up the tab. Over lunch, you can discuss what deals they’re working on, what you’re looking for-and you might even pick up a deal!

Of course, it might take several months of these lunches to produce any deals. But you’ll get to know more about their business (their lending criteria and what kind of deals they work on most often) and they’ll get to know your business structure too (for example, whether you invest as an entity or an individual, and whether you prefer to “flip” investment properties for a quick profit or “rehab” them before selling).

Share the wealth with your hard money lender. Once you know your hard money lender(s) well, you can refer real estate investment deals to them that fit their criteria. They’ll appreciate it, and most likely, they’ll remember that they “owe you one.”

Make the hard money lender’s job a little easier. You can do this by submitting a professional, organized loan package with compelling information about why the investment is a good idea and what your plans are-and why the lender should make a loan to you with confidence. Anticipate questions that the hard money lender or private lenders might ask, and answer them in the loan package.

Get to know the private lender too. Private lenders can be real estate professionals or savvy businesspeople, but very often, they are simply retirees with money to invest. They lend out their money and it comes back to them effortlessly in the form of mortgage payments-with much higher interest than a CD or money market account would pay.

But just because private lenders don’t have to be actively involved to collect their checks doesn’t mean that they aren’t curious about the deals they are funding. If you send your loan payments directly to the private lender, remember to always send them in early, enclose information on how the project is going (such as before and after photos), perhaps let them know how much profit you made, and thank the private lender for being a “partner” in your project’s success. That makes the deal more rewarding to them-and those private lenders will be more likely to help you with future real estate financing needs.

Work with the same real estate investing team of hard money lenders and private lenders for continued success. Once you have a successful investment deal or two under your belt, don’t forget who helped you get there! If it’s possible, work with the same hard money lenders and private lenders on other deals-doing so shows that you are a person of integrity and someone they can trust.

Real estate financing through hard money lending is not about your credit score, your income or even whether or not you’re gainfully employed. Hard money loans are based on asset value-the quick-sale price of the property you’re buying. And that means that anyone can be a successful real estate investor…as long as you have the right relationships.

September 12, 2012
Shawn Molem
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