Don't be afraid of private money, or even hard money, if you are going to invest. You need to leverage your efforts, and in today's market, with so little opportunity to earn good returns on cash, many investors are looking for a
SAFE way to do better on their nest egg.
Note, I said "safe." If you are doing it right, you'll be interesting to private money investors simply because you understand their position and how to minimize
their exposure. You'll want to be able to show them how you will protect their investment, and what their options would be if the plans didn't go as planned.
If you are taking loan against a property you'll be rehabbing and reselling, you should not even meet with a private money lender until you've done your homework and have firm numbers on: purchase price, repair costs, and after market value. You'll need to make your presentation clear and easy to follow. And the terms a smart money source will be looking for will be a loan secured by a note and deed of trust which is recorded in the county where the property is located.
We routinely fund our transactions with private money loans because we understand that taking care of our money people is good business. We pay a great interest rate and borrow with short term loans. We are in, and out, generally within four months. And, we keep our project calendar as full as we can manage so that when a private money lender approaches us, we can usually place their money quickly so that it starts making money for the money person and for us, right away.
~ Posted by NH
