Are Private Money "Cash Outs" a Good Idea?
Monday, February 15
Cash. I like it. A lot. So should you. And I like to walk away from any real estate closing I can with it in my pocket. That's the whole point. However, certain situations arise with raising private money where it might not be the best idea to "cash out.' Here's what I mean: Buy a property with...
When Should You Pay Your Private Investors?
Sunday, February 14
It wasn't long into my first private money deal that I realized my mistake. Yikes. I had promised to pay my private investor in monthly, interest only payment each month for up to 5 years. Cash flow started to get a bit tight. The operating expenses for the lease-option house had spiked on me - u...
Stop Trying to Run Your Business with a Crystal Ball
Saturday, February 13
I've got a mailbag of venerable burning questions this week. Most of it has to do with peering into the future to get a handle on what's going to happen in the real estate market. "How is the home buyer tax credit going to affect the real estate market?" "How much is the Fed going to raise intere...
The Case for High Net Worth Private Money Investors
Thursday, February 11
Your best source of private money is from high net worth investors. This shouldn't take much convincing. Unfortunately, far too many real estate investors concentrate their private money raising efforts on non-accredited investors. There is nothing wrong with raising money from non-accredited in...
Use Tax Free Money to Hook Private Investors
Wednesday, February 10
It has been said that there are only two sure things in life: death and taxes. This is unacceptable. Since it doesn't do us much good to 'fear the reaper' (sorry Blue Oyster Cult - I had to borrow it) let's focus on the other one - taxes If there's one thing better than making money, it's keeping...
Dang...it's Good to Be a Real Estate Investor
Tuesday, February 09
There are a lot of choices for what business to be in. You could have opened a restaurant, dry cleaners, consulting company or any other business. But you chose real estate. When it comes to raising money to grow your business, you couldn't have made a better choice. Do you think it would be ea...