Right now there is more wealth-building opportunity than there has been in the last 75 years and the only way forward is through real estate. But getting involved takes serious Private Money Power!
Although conventional funding is scarce, there is a plethora of funding available in the private sector. Knowing how to find the right property, the best source of funding, and then how to turn the property over for profit is the real clincher!
In this Private Money Bank.com Special Report, we’ll show you 6 reasons why private money can catapult you to success and how the foreign language of private money will keep you safe in all your financial transactions.
What is Private Money?
Private Money has shorter terms and a clearly defined repayment schedule. Terms for these types of loans will vary from lender to lender and will depend upon the experience level of an investor, as well as the length of an investor’s relationship with a particular lender. Therefore, there are really no hard and fast rules to Private Money. You may be quoted a certain rate or acceptable loan-to-risk ratio one week and find that the terms have changed drastically the next.
Generally, a private money lender will provide a loan for 50-65% of the as-is value of a home at an interest rate of 12-18% for a period of 6 months to one years. They will also charge between 5-10 points as an upfront financing fee. As you can see, the spread is generous and the terms are dynamic and change on the various aspects of the loan, such as:
1. The investor’s background
2. The investor and lender’s previous relationship, and/or
3. Property details
6 Reasons Investors are turning to Private Money
Speed
As opposed to bank loans, Private Money is FAST! You have most likely already experienced the snail’s pace of borrowing money from a conventional lender.
Unfortunately, with many of the good deals on the market, there is no time for involved paperwork, credit checks, or pay check verification.
Usually private money lenders won’t request all of this information and if they do, the process is less strenuous and laborious because they are lending on the property’s potential rather than the person’s background check. That’s why borrowing private money often goes more smoothly and quickly. If you have a good deal, finding money is easy.
Private Money is quicker because it’s centered on the property and not on you. If you have a gem, the money will readily be available!
Credit Problems? No Problem!
If you have a pock mark on your credit score, it can be the difference between life and death in your ability to find funds from a conventional source. Banks are now requiring close to perfect credit scores before they lend out any money. Not so with Private Money.
Although a private money lender will often want to see a financial statement of some kind, they do it more to review your past real estate experience. A lower credit score will mean very little if you can prove a savvy in-vesting background.
Along with experience, the best thing about private money is that it doesn’t look at past bankruptcies or credit problems; it focuses on the merit of the property. If it is a low-risk, high-yield investment than you’ll most likely get the loan! This is nice to know if you haven’t always been an angel with your finances!
Unlimited Funds
Luckily, Private Money is everywhere and you’re not limited to financial institutions to find it.
Another solid plus in this realm of financing is that there are as many Private Money Niche Lenders as there are niche investments! If you’re interested in commercial properties, like apartment buildings or strip malls, you’ll find a handful of eager investors ready to help you capitalize on these types of deals. If you’re interested in single-family investment opportunities, you’ll find hundreds, if not thou-sands of individual private money lenders chomping at the bit to lend you the cash needed to secure these types of properties.
Private Money is just waiting for you to find the right investment opportunity!
You’re in Control
Finally, you’re not at the mercy of the bank! Too many of us are experiencing serious love-loss with the banking system. Think about it, how many times have you felt like your loan owned you rather than the other way around?
With Private Money, you get to be involved in the negotiation process, and the more you know about Private Money, the better you’ll be at parleying the best terms for you and your property.
By thoroughly understanding the terms of Private Money, you can keep more money in your pocket and make a substantial return on your exit strategy.
Once you’ve arranged and closed several deals, you’ll begin to think and finance your deals like a bank. And, instead of your loan having you over a barrel, it will be structured to work toward the goal of ultimate short-term or long-term profit!
Private Money Is All About Creative Investing
With Private Money, you can get funding on great deals that banks would normally shun. Sometimes you’ll find a promising investment property that needs repairs, making them unsuitable for most banks, but perfect for most private money lenders. Private Funding loves the ugliest house on the prettiest street. You see, they look at the property’s future value, while the bank only looks at the property’s present condition. By going through a private lender, you open up more doors to opportunity and more avenues to make more money!
Here’s a quick synopsis of the kinds of deals Private Money Loves:
1. Single Family Homes
2. In Already Established Areas
3. The Ugliest House on the Prettiest Street
4. Usually 65 cents on the Dollar
You Can Make Offers With Confidence
Don’t you hate making an offer while crossing your fingers behind your back and hoping that the bank will think it’s as good a deal as you do? While conventional lenders have no imagination and can’t see what you see, Private Money lenders are all about creativity and know that sometimes the uglier the house, the better the return will be!
Having a Private Lender in your court gives you confidence to put properties under contract. As long as you find the no-brainer, steal of a deal, do the proper due–diligence, and turn in a completed package to your private money lender, you can be rest-assured that the deal will fund.
Obtaining funding is the #1 Challenge for most Investors in to-day’s business market. They can-not find financing on small deals, let alone multi-million dollar opportunities. If only the cash had been available to them, their dreams of financial freedom would have become a reality. Fortunately, Lee Arnold has uncovered the missing link to funding in every type of economy by creating, Private Money Bank
As a self-made millionaire, Lee Arnold quickly identified the common elements that have kept so many would-be success stories from achieving their own personal financial dreams and combined these ingredients into a complete, all-inclusive package for success!