Private Lender Money

Quincy Long of Entrust Texas delivered an informative presentation on last night's
conference call. He revealed two of the best ways to find private lenders who are
ready, willing, and able to fund your real estate deals quickly.

Quincy is always such a wealth of knowledge about anything to do with creative real
estate and especially self-directed investment accounts. You should take advantage
of every opportunity to learn from Quincy.

Find and use private lender money, or they are a private lender, or BOTH.

You'll be learning from years of experience PLUS you'll learn new ways to do deals
that you've never even thought of before. Each one of the speakers at the Private
Lender Magnet event has also been involved in creative real estate investing for many years.

Did you know that you really need to have 2 or 3 private lenders lined up at all times?

Here why. . .

Some private lenders prefer short term deals. They want to get in and out as fast as
possible. Others prefer long term deals. They want to keep their money "out there"
and don't want the hassles of constantly looking for the next thing to invest in.

Some private lenders want interest payments while others prefer to not get interest payments.

So some of your deals will fit the investment criteria for one private lender but may not work
for another. .

Here's an example of why you don't want to have just one private lender:

I had an option contract on a property worth $145,000. It was in a great part of town.
My contract was for $45,000. The house really needed a lot of work. My plan was to
just flip it to another investor. But when the margin is that good I sometimes like
to buy it first then sell it later. (Less chance of losing the deal)

I asked my preferred "short term" private lender to fund the deal and told him I should
have him paid off in 30 days. He took a look at the house and decided it needed too
much work. He was concerned that I would not be able to flip the house. (he didn't know
me very well)

I had another private lender I could use but he preferred long term deals and I was not
sure if he would go for a short term deal. He likes 5 year or 10 year commitments. I
didn't want to rehab this house and keep it as a rental so he was not a good fit for funding
this deal.

So I called another person I had been talking to about my real estate business. I had never
borrowed money from him but told him I would give him a call the next time a good deal came
along. He took one look at the house and said, "Let's do it!"

That old saying that if the deal is good enough you can always find the money is true. But
you may not find the money on the first try or the second or the third...and it may not be at
the terms and conditions that you want.

Building relationships with multiple potential private lenders needs to be a life long habit.
You just never know when the private lender you thought would fund the deal is out of money
or just won't do the deal for one reason or another.