Comparing the 4 types of funding sources

There are 4 types of funding sources.

Let’s review by looking at the downsides.

1.) BANKS

If you go to a bank, chances are they will want tons of paperwork, pay stubs, tax returns, etc.

It’s a lot of hassle.

Eats up time.

Whereas, when you can move fast with all cash from private lenders, sellers will sell you their homes at a discount.

– Quit your J.O.B. and they won’t loan you money
– Need down payment
– Need decent credit
– Lost time (Alan once lost 4-and-a-half months to close a deal)
– No relationship
– They change rules instantly
– Mountains of paperwork
– On credit report
– Provide stack of documents
– Jump through their hoops
– You’re out of control
– Monthly payments
– Pre-qualifying the property

Let’s face it some of us, buy some really nasty stuff to rehab.

Beyond the trash and that horrible smell, some of the houses we buy don’t have roofs, or windows, or furnaces, or plumbing.

We buy trash and turn it into cash.

Banks don’t seem to understand that.

2.) HARD MONEY LENDERS
– They are very expensive
– Maybe your credit score is important
– Need down payment with some lenders
– Only one (1) exit strategy – Sell for cash
– You’re out of control
– No up-front fix up money (Rehab $$$)

3.) LINE OF CREDIT
– Monthly payments
– Limited $$$
– Can be called back and you’re cut off
– Out of control

4.) YOUR OWN MONEY & CREDIT CARDS
– Limited $$$
– Could make more by loaning it out at a high rate of return.

If you use private lenders you can avoid nearly all of these downsides.

With private money you buy what you want.

You can rehab about anything.

That’s your decision, not someone else’s.  Today you are the approval committee.

One final note on building relationships…

Appreciate my lenders.  You’ll meet some great folks.  These strong relationships built on trust make your business grow, not to mention make your life more enjoyable.  Do you actually know anyone at your bank or are you just a number to them?  There are some exceptions, of course.

The bottom line is that now you know the facts.  Don’t PROCRASTINATE.  Go create wealth and live the life you want.

Alan will explain Private Lending in detail at our 2 Traction REIA events this week.

#1.  Traction REIA Main Monthly Meeting
TOPIC:  “Private Money Made Easy” with Alan Cowgill

Thursday May 18th at the Sheraton Tysons Corner.

RSVP here:
https://TractionREIA.com/events/may2017

#2.  Training Event with Alan Cowgill
TOPIC: “Private Lending with Family, Friends, Associates & Strangers (with full SEC Compliance)”

Saturday May 20th at the Sheraton Tysons Corner. Get more info at:
https://TractionREIA.com/alan

Tom Zeeb
Traction Real Estate Mentors

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