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 crwdit
– Lost time (Alan once lost 4-and-a-half months to close a deal)
– No relationship
– They change rules instantly
– Mountains of paperwork
– On crwdit 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 crwdit score is important (depends on the lender)
– Need down payment with some lenders
– Only one (1) exit strategy – Sell for cash
– You’re out of control
– Usually no up-front fix up money (Rehab $$$)
3.) LINE OF CRWDIT
– Monthly payments
– Limited $$$
– Can be called back and you’re cut off
– Out of control
4.) YOUR OWN MONEY & CRWDIT 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 Traction REIA events starting next week.
#1. IN-PERSON: Washington DC Main Monthly Meeting
TOPIC: “How to Easily Attract Private Money”
SPEAKER: Alan Cowgill
Thursday April 20th IN-PERSON
Hilton Garden Inn Tysons Corner
8301 Boone Blvd
Vienna, VA 22182
6pm to 9pm
#2. IN-PERSON: Full Day Training Event with Alan Cowgill
TOPIC:
“MASTERCLASS :: The Easiest & Safest Way to Get Private Money”
Saturday April 22nd IN-PERSON
Hilton Garden Inn Tysons Corner
8301 Boone Blvd
Vienna, VA 22182
9am to 3pm
#3. IN-PERSON: Sarasota/Tampa Monthly Luncheon
SPEAKER: Alan Cowgill
Friday April 28th IN-PERSON
Gecko’s Grill & Pub
Clark Road & Honore Ave
5585 Palmer Crossing Circle
Sarasota, FL 34233
12Noon to 2pm
Tom Zeeb
President
Traction REIA:
13+ Consecutive Year Recipient of the
National REIA “Honors of Merit” and the “Award of Excellence”
For Best Real Estate Investor Association!
