Why You Need Private Money Lenders

First and foremost, traditional lenders (banks, corporate lenders) aren’t as “real estate investor friendly” as they used to be. Since the real estate market crashed in 2008, lending institutions have unfortunately tightened up on non-owner occupant approvals significantly; something that doesn’t really flow with the mindset of investors.

Conventional funding entities are also very slow when processing loans; and they base their mortgage allowances on appraisals – which are seldom equal to ‘what someone is willing to pay.’ In fact, the art of appraising has become highly complicated due to more frequent foreclosures offsetting traditional sales.

It’s not a problem for real estate investors because they’ve become experts on ‘what the market will bear,’ or not. And, investors need ready access to funds for quick flipping and all-cash deals. So, private money lenders have essentially created their own industry; one which works in spite of the disinterest of savings and loans companies which used to hold all the cards; one that succeeds without government regulations.

Famous real estate entrepreneurs have built their fortunes based on a foundation of credibility and engagement with solid relationships. This includes surrounding themselves with peripheral partners who can interact in ways beneficial to them all. Once you have established a group of private money lenders you can go to the next level, to becoming a ‘syndicator.’

A private money lender syndication is able to pool everyone’s money together for both short term flips and long-term buy and holds, and much more. It has more leverage and can act faster when that great deal appears. As the consultant/syndicator you can earn extra money in addition to the profits of the partnership.

Reserve your free seat at my next Private Money Made Easy webinar for insider tips on just how this works! Simply visit my website (below), choose the Webinars tab and scroll down to the webinar title!

Hope to see you there!

Laura