Finding Private Money is Easier Then You Think
"I want to invest in the mortgage market but I do not have the money or I do not know where to find it". Have you heard this statement or have you said it yourself? Well, all you have to do as an investor is ask for it. It is surprising how many ordinary people have money and are willing to invest it in the mortgage market. The only way to find these people is to constantly ask. If you are looking for private money, you just have to make it available to everyone you know. You do not need to ask directly … you can say that you are looking for people who earn "x"% (usually 10%) and ask everyone you know if they know someone who could recommend you. . You will be surprised, but many times the people you ask will end up giving you the money. Set a goal for the amount of cash you would like to raise and then exit and do it! The more private money we get aligned, the more you can make offers without worrying about the cash flow needed to cover current future expenses in current or future projects. Cash will allow you to take advantage of the good foreclosure opportunities that arise.
Now every private money lender is different when it comes to returning the money plus interest. I insist with my private money lenders so that the process is as simple as possible for both their benefit and mine. We simply pay our simplest main interest at the time of closing the sale and retire with what remains as profit. 99 of every 100 times the private lender is on board with this payment system.
If money is your only problem to start investing in the foreclosure real estate market or growing your real estate investment business to the next level, then you really do not have much to overcome. Most of the investors I have interacted with claim that "this is their biggest contract" when it comes to growing their real estate business. If that describes you … just start asking. You will be surprised what you find if you commit to the process and look at it! The 2 keys to success are always ask and offer a high rate of return along with a mortgage registered against writing.