WHY USE PRIVATE MONEY LENDERS?

 

WHY USE PRIVATE MONEY LENDERS?

1. Private lenders for real estate are offering competitive interest rates

Since a loan on an investment property is secured by a recorded Deed of Trust, private lenders can offer interest rates that are competitive with the open market.

Additionally, since private lenders for real estate are looking for investment properties, they are more likely to offer these rates on properties without a current cash flow than traditional banks, which are still restricting lending.

2. Private Money loans are faster and more flexible than other loans options

Since private lenders use the same investing principles as you do, they can make a quick decision, allowing you to avoid the long process of traditional bank underwriting.

3. Private lenders’ debt service coverage ratio is less strict

Since private lenders do not have the same underwriting process as traditional loan servicing arrangements, they have more flexibility to look at other factors influencing loan repayment.

4. Offer shorter terms

Working with private money lenders offer shorter terms to allow you to secure the property, avoid prepayment penalties, and look to traditional financing once the property is stabilized if necessary.

5. Real estate provides you better access to loans

While keeping traditional loan benefits. With private loans, you still have the same protections as with traditional bank loans, but are able to take advantage of a hard money loan process that moves more quickly and is inherently more flexible than conventional permanent financing.

6. It is less frequent for private loans to be packaged and resold

For real estate, they look specifically at you and your property to make an investment decision, and once they have found a good risk they are unlikely to sell their investment. This allows you a measure of confidence which you will still be doing business with the same partners for the life of a loan.

Even though cash buyers are a great resource for funding and buying real estate, Private Lenders are able to provide investment resources above and beyond what a typical cash buyers may be able to provide.




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PRIVATE MONEY LENDERS - REAL ESTATE SOLUTIONS

 

PRIVATE MONEY LENDERS - REAL ESTATE SOLUTIONS

The coronavirus pandemic has thrown a monkey-wrench into all facets of life, including paying rent or the mortgage for some which includes real estate investors.

The real estate investment outlook prior to the coronavirus pandemic was looking pretty good with low interest rates, and new home construction still doing well. Fix-and-Flips were on the rise and rentals, though increasing, still were becoming occupied.

However, since the coronavirus pandemic, real estate businesses have either accelerated the growth of their real estate businesses or have watched their real estate businesses decline.

The coronavirus pandemic has impacted all businesses, with smaller companies being hit harder, especially companies with fewer than a couple dozen employees. Why?

Because a small business with fewer than a few dozen employees typically lacks cash flow and capital. Those companies were the first to reduce hours for employees or lay off employees. Those businesses were also the first to stop hiring subcontractors.

With the U.S. officially in a recession, millions of people are suffering.

And acting with compassion over the next 6-12 months is key, whether it is towards homeowners or landlords in trouble or renters having issues making payments.

However, for individuals who are properly positioned as real estate investors, the next few years will spell out O.P.P.O.R.T.U.N.I.T.Y

Even if the extra unemployment benefits and eviction moratoriums currently sun-setting get extended, they will expire eventually.

Between landlords having trouble collecting rents and homeowners in forbearance accumulating a pile of debt, there will be more distressed sales coming online.

Rentals will become cheaper…

And fix and flips will have less “newbies” competing for them.But…because of our housing shortage and continuing low interest rates, people will still buy your fix and flips (if you’re still in business).

The question is, are you going to be positioned to take advantage of these opportunities? Unfortunately, when the housing market softens or does anything resembling a crash, traditional financing dries up.

Hard money lenders go out of business left and right because they have lent to the wrong investors and banks get scared. So they pull out of lending on anything that’s not deemed “very safe”… They cancel credit lines, stop lending on construction or rehabs…And generally just crawl into a corner in a fetal position…(try to picture a “bank” in a fetal position…pretty funny).

That’s the hilarious thing about “Times of Opportunity”:

Most people get scared exactly when they should be entering the market in full force! So how do you ensure that you can still close on deals when all the dummies run for the hills?

Answer: Private Money Lenders

If you have solid private lending relationships, you will be able to pull the trigger on any deal you want. No matter what the market is doing or how many hard money lenders are filing bankruptcy.

1. Private money is personal.
2. Private money is flexible.
3. Private money is crash resistant.

If you BRRRR deals (Buy, Rehab, Rent, Refinance, Repeat), private money is crucial for short-term funding.

If you do fix/flips, private money is a FAR cheaper alternative to hard money and less risky. And if YOU are a good, honorable steward of that money, it will keep flowing to you.


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Cash Buyer Real Estate Investing

Real estate investing has become a very popular entrepreneurial vehicle over the last 50 years or so. When you think about real estate investing, the first thing which probably comes to mind is your home. Of course, real estate investors have lots of other options when it comes to choosing investments.

Here's a look at some of the leading options for real estate cash buying investors.

Find a Real Estate Cash Buyer who invests in Apartments, Condominiums, and Town-homes
Find a Real Estate Cash Buyer who invests in Manufactured, Mobile, and Modular Homes
Find a Real Estate Cash Buyer who invests in Multi-unit real estate
Find a Real Estate Cash Buyer who invests in Raw land
Find a Real Estate Cash Buyer who invests in Single-family home properties.

Find real estate cash buyers for you all of your real estate investments with CashBuyersLists.com

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ARIZONA REAL ESTATE INVESTOR Cash Buyers lists

ARIZONA REAL ESTATE INVESTOR Cash Buyers lists

Are you looking for a list of Arizona real estate cash buyers?

Well look no further. Get a verified Arizona real estate cash buyers list.

RECBL’s Arizona’s real estate cash buyers list is perfect for ARIZONA REAL ESTATE INVESTORS, AGENTS, BROKERS AND WHOLESALERS. GET YOUR ARIZONA REAL ESTATE CASH BUYER’S LIST NOW!

https://www.cashbuyerslists.com/arizona-real-estate-cash-buyers.html

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ALASKA REAL ESTATE INVESTOR Cash Buyers lists

ALASKA REAL ESTATE INVESTOR Cash Buyers lists

Are you looking for a list of Alaska real estate cash buyers?

Well look no further. Get a verified Alaska real estate cash buyers list.

RECBL’s Alaska’s real estate cash buyers list is perfect for ALASKA REAL ESTATE INVESTORS, AGENTS, BROKERS AND WHOLESALERS. GET YOUR ALASKA REAL ESTATE CASH BUYER’S LIST NOW!

https://www.cashbuyerslists.com/alaska-real-estate-cash-buyers.html

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ALABAMA REAL ESTATE INVESTOR Cash Buyers lists

ALABAMA REAL ESTATE INVESTOR Cash Buyers lists

Are you looking for a list of Alabama real estate cash buyers? Well look no further.

Get a verified Alabama real estate cash buyers list.

RECBL’s Alabama’s real estate cash buyers list is perfect for ALABAMA REAL ESTATE INVESTORS, AGENTS, BROKERS AND WHOLESALERS. GET YOUR ALABAMA REAL ESTATE CASH BUYER’S LIST NOW!




https://www.cashbuyerslists.com/alabama-real-estate-cash-buyers.html




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12 Tips to Make Money in Real Estate

12 Tips to Make Money in Real Estate

When you invest in real estate, you invest in something tangible. You can look at it, feel it, drive by with your friends, point out the window, and say, “I own that”. For some people, that’s important psychologically.

Real estate investments have traditionally been a terrific inflation hedge to protect against a loss in purchasing power of the dollar.

When it comes to real estate investing there are multiple ways to earn a dollar. Here are

12 tips to make money in real estate.

1. Taking calculated risks by implementing the LOANs strategy
This is a real bonafide strategy. Using other’s money can help you get started. You can make a fortune in real estate by taking out loans. You might not even be able to get a credit card so you try to put deals together with no expenses other than a phone number.

If you are going to own real estate, on the other hand, then you need to be prepared to take out a lot of debt — or leverage — to finance your property with the least amount of down payment. This can be risky because there are laws stating the minimum that you must put down to buy property in different jurisdiction. Some articles recommend risking it all by taking out credit cards. This is fine if this fits your appetite for risk and using hard money. Just be respectful of the fact that you have to pay this money back. In most cases loans with higher interest rates are meant for short term uses. Some people buy their property free-and-clear.

Leveraging Other’s Assets Now Strategy

2. Care about your tenants by improving your property
What’s the point taking all of the risk if you don’t care about the property?

Many investors don’t care about the condition of the property. They care about getting paid. Some investors would rather offer discounts on rent than make an improvement to their property. This tells me that they are undercapitalized or just aren’t good business people. If you want to invest in property you should care about making improvements to it to optimize the property’s value.Plan for your property to be damaged, budget to repair your property, and take people to court to recover costs. Real estate is built around contracts. If you want to enforce your contracts you have to take them to court often to get liens, judgments, and help getting tenants out of properties. Make sure to talk to your lawyers.

3. Condos vs SFR (Single Family Residence), make for better rental properties
What property type should you choose? Your property type should depend on the real estate itself, however most real estate professionals prefer a specific real estate niche. If you are in real estate you have probably heard the industry adage, “Never fall in love with real estate…fall in love with the ROI.” So what real estate ventures can provide a return on investment (ROI) a real estate investor can love? It’s been said by sites and realtors that condos make for better investments than single family residences, however, it really is based on the numbers. Decide whether you are a cash flow investor or capital gains investor, analyze your deals and make your decisions. It seems that mobile homes and mobile home parks are popular right now.

4. Find partners that you can trust
At some point during business growth, it may make sense to take on a partner. Too much work, you’re stretched too thin, missed opportunities. A good business partner may be the solution – and you can take a day off once in a while.

Finding a business partner is a lot like finding a partner in life. A solid foundation is based on trust and respect for each other. Your business partner will be an integral part of your life.

Finding partners you can trust is a key element for all types of relationships in real estate. Like all relationships, business partnerships are built on trust and mutual value. The beginning phases of these relationships are critical to establishing that trust and value. You need to prove to a potential partner that working together is in both of your best interests, right from your initial conversations.

Eight Ways To Build Trust-Based Relationships With Potential Business Partners

5. Diversification is key
Diversification is important, as with any investment, so plan to buy lots of property, a big portfolio of real estate assets, or do deals. If you do deals by being the middle man, you only need a few good connections to strike it rich. Consider investing in assets outside of real estate to diversify as well.

6. Start local
Robert Kiyosaki mentioned in one of his real estate courses to focus on your local neighborhood and get to know the market well. Focusing locally is a great strategy because you are not far from your property and know what is going on. It can be more difficult doing out-of-state deals because you have to build trust with the people you are dealing with at a distance. It’s good to be able to fly to meet cash buyers and motivated sellers face-to-face. Once you connect with buyers and sellers, you can meet them face-to-face — it’s up to you! You have the potential to become an international expert when you start local.

7. Know Your Neighborhood
As we mentioned previously, starting local is a great strategy. Get connected with local experts who know about the specifics of each neighborhood before you invest. There are such drastic demographic changes between close neighborhoods in the U.S. that it’s good to know people in those locations who you trust, you can joint venture with or consult and to visit those locations yourself so you can see the difference in the areas which you are investing. Some of you invest in such big packages which make it prohibitive to visit every single neighborhood but it’s a good idea for smaller investors to visit where they are investing. Even some coaches visit where they invest.

8. Find a niche
Finding a niche is really important. You do not need to be expert in everything. You need to be exceptional at a few things and customers will buy, tenants will rent, cash buyers will invest. You can try to be an expert in many phases of real estate, or you can specialize in a niche market and become the authority in that market. There are many highly successful real estate agents and brokers that have narrowed their real estate marketing niche focus to a specific geographical area, a type of property or a category of consumer. Recognizing the opportunities that are out there and selecting a niche that appeals to you can be a lucrative strategy. Here are just a few niches to get you started…

• For Sale By Owner Properties (FSBO's)
• Resort and Vacation Homes
• Hispanics are a growing home-buying group.
• More and more Singles are buying homes every year.
• Baby boomers, or Seniors are a huge market influence.
• Luxury Homes - A market requiring specialized skills and money.
• Condominium buyers and sellers offer a great niche opportunity.

9. Pick Trending Markets
In tip 6 remember Robert Kiyosaki mentioned to focus on your local neighborhood? Contrary to starting local, Forbes recommends going where the money is. In this article, David Lichtenstein recommends following hot industries in order to know where prices will go up. He believes that trend spotting is very important to accumulating wealth in real estate quickly. Getting a jump on the upcoming trends can have a positive financial impact on your real estate business. Here are Housing Market Predications for 2019.

10. Have good tax accounting
Claim capital expenses on your taxes to defer paying taxes. Rollover your properties to new investment properties so you don’t have to pay taxes on the sale of one property when upgrading to a bigger one with more doors which cash flows better. Learn the different tax laws in each market so that you don’t miss out on investing in all of the hot markets with the biggest price appreciation. Consult your tax professional.

11. Get control of as many properties as you can while mortgage rates are at historical lows
Debt is still debt. You have to be careful of taking on too much debt because interest rates can rise and you can be over leveraged, unable to refinance, and go bankrupt. With so many countries going into negative interest rates, who knows where interest rates will go. With low interest rates it is more affordable to own property.

Good Debt - There's no better example of the old adage "it takes money to make money" than good debt. Good debt helps you generate income and increases you net worth.

Bad Debt - While even "good debt" can have a downside, certain debts are downright bad. Items that fit into this category include all debts incurred to purchase depreciating assets. In other words, "if it won't go up in value or generate income, you shouldn't go into debt to buy it."

12. Build a lead generation system
“Systems and technology have leveled the playing field.” - Josh Altman, the star of the hit TV show Million Dollar Listing. Some real estate investors have their own IDX integrated sites with lists of 80,000 cash buyers, which really help them, get deals done in their local market when a distressed seller calls them. However, you need to have your own lead generation system to make this happen. Placester provides tools that will help you increase your sales however, look to pay an annual fee of $1,200 to $3,000 if you need an entire IDX integrated site and email marketing. Your real estate leads are your bread and butter. However, you don’t have to start from scratch and you don’t have to pay thousands of dollars to get started. This is why RECBL provides verified real estate cash buyers for agents, brokers, wholesalers and investors to help real estate professionals with real estate ventures. RECBL provides real estate cash buyer packages starting at only $10. Also, with each package, we make sure you are able to access the free real estate property software and free real estate email marketing software.

Here is an article on the marketing trends to pay attention to in 2019.

How much are you going to make in real estate in the next ten years?

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