Posted by Patrick Riddle at http://www.privatemoneyblueprint.com/index-4.html

Part 1, How to Explode Your Private Money Lending Program with a Newsletter, in the Private Money Millions Series.
What is a Private Money Newsletter?

A private money newsletter is an excellent way to build trust and rapport with your prospects and get mucho dinero faster and easier because of it.

And Im not talking about an electronic newsletter (however email news letters are highly effective and cheap as well!); Im talking about a physical snail mail newsletter.

Now, if youre strapped for time and cash, an e-newsletter is better than nothing, but a physical newsletter is beneficial for many reasons which Ill cover momentarily.
What To Include In Your Newsletter?

But first, here are a few ideas for what could be included in your private money newsletter:

* Sample Deals Show your private money prospects the type of properties you purchase and what the

potential returns would be.
* Real World Deals This is even better than a sample deal because its shows what youre doing, not what you intend to do. If you didnt use a private lender in your real world deals, show what a private lender would have made.

* Articles You could either write articles on the bene fits of private lending or cut and paste from articles you find online (make sure to give credit to the author if you cut and paste). Include any articles that build value in real estate investing and private lending.

* Testimonials If youve never used private money before, get some testimonials from anyone youve done business with and use them to build your character and reputation. You could also use testimonials from any buyers and sellers youve worked with. Heres a great tip for ya when getting testimonials: make them results based.

* Real Estate Market Statistics People love statistics and if youre the one bringing them to them each month theyll be more apt to open up and read your newsletter. Also, another benefit of this is that youre seen as the expert in your area and your credibility goes through the roof. You can even get other investors and realtors on your newsletter when you give out quality content like this to them for free and over time youll build a great relationship w/ them and convert a good percentage into private lenders (or at the very least buyers of your properties).

A great free source for real estate market stats that you can regurgitate and put in your newsletter is John Burns Consulting. Join their free monthly market stats reports and youll get a ton of value out of it.

* Fotos (aka pictures still working on my Spanish had to google that one) Remember the old saying, A picture is worth a thousand words? Well, kee p that in mind here. Use pictures of any properties youve purchased, people youve done business with (buyers, sellers, lenders), or if youre a newbie, pictures of the type of properties youll be purchasing.

Why a Private Money Newsletter Leads to More Money Faster and Easier

1. More Touches Builds Greater Trust and Credibility In marketing, a touch is anytime you put your marketing message in front of your prospect. It coul d be through a TV commercial, newspaper ad, a newsletter, etc. And giving them something tangible, say a physical newsletter thats mailed out monthly or quarterly, is a powerful touch.

Also, just the act of continually getting in front of your prospects eyeballs shows that your business is active, youre doing deals and youre making things happen. This builds massive credibility as they see each and every month the progress youre taking and they feel they want in on the action.

2. Online Biz Makes Owners Lazy Many busines ses are abandoning direct mail and are doing all their marketing online. BUT, direct mail is still a killer strategy to get your message in front of prospects use it to set yourself apart from the competition.

3. People Still LOVE Getting Things in the Mail Theres something about getting stuff in the mail that people just love. Having your newsletter in hand makes it much more likely that it will get read AND it

4. Gives Prospects an Easy Way to Spread the Word about Your Private Lending Program It gives your prospects something to show people and ask their opinion about, it gives them something tangible, something re al. This brings your private lending program from the intangible, from just an idea, to something they can look at, touch and feel.

So, Action Steps

1. Try out the resources below (yes, we do make money off of some of them if you use them but, they are resources we personally use and like. If you enjoy our free info wed appreciate it if you use the links below if youre going to try out those services and sign up for a service to deliver your email newsletter.

2. Set a monthly date for when youre going to send your newsletter out. I like the first week of the month. Once you pick a date stick to that date so your prospects/newsletter subscribers expect it each month.

3. Start gathering people into your newsletter. Now, you need to start getting people into your newsletter. Start with your family, friends, and people you know. Ask them if theyd like to be updated on what youre doing in your biz and on the real estate market. A great way to get them on the newsletter without selling is to ask the m for advice. Like Hey, Im starting up a once a month newsletter on our local real estate market and what were doing in our business would you mind if I put you on the list so you can give me feedback on what you like and dislike?. That way theyll get on and give you feedback but also theyll see the action youre taking and will likely become interested.

Also, put a newsletter signup box on your website (Aweber will create one for you) that advertises real estate market statistics for your local area and real estate news and advice. And/or advertise a free report.

4. Ask for referrals. Make sure in your newsletter at the bottom of each issue you add a phrase that says

Like what you see in our monthly newsletters? Excellent! Forward this email to people who you know will benefit from it. Theyll appreciate you a ton!

That way your current newsletter subscribers are advertising your newsletter for you.

5. Give them great content like we mentioned above. But, DONT sell people into your program or offer any specific investments. What youll want to do is chart deals youre doing, give content, build credibility and trust and in each issue put a blurb in it saying something like

Want to learn how to work with our investment company to make passive profits? Click here.

Then, that can take them to a video on using IRAs to invest in real estate or to a page that briefly explains that you work with people every day in your community who want to get the benefits of real estate but who dont want to actively invest in it themselves. Then, pass them through your Private Lender Questionnaire which qualifies them so you know whether or not theyre an accredited investor that you can talk to.

Chat w/ your attorney about the specifics not everyones state laws are the same.

Weve had students who have emailed us saying that theyve had people on their newsletter list for months sometimes well over a year before they decided they wanted to invest with them. So, for all of the prospects who arent 100% serious about private lending quite yet get them on your newsletter and provide them a ton of value and build credibility with them over time by showing that youre taking action and running a real business.

Itll be much more powerful than you think!
Recommended Resources to Get Your Private Money Newsletter Up and Running

Alrighty now that you realize the importance of a newsletter (gives you an excuse to get in front of your prospect and it builds credibility over time) heres a few resources we think youll enjoy

Direct Mail Newsletter Resources:

* No Hassle Newsletters This service gives you done for you physical newsletter templates and ideas so you just have to plug in your content and run. It isnt the cheapest in the world but their templates and instruction are awesome. Check them out if you want well worth the monthly cost if you implement it.

* 1-800-Postcards A good print shop for good quality and economical printing. They can print up your newsletters for you or just head down to your local Kinkos or Staples and have them do it for you.

Email Newsletter Resources:

* Aweber – The email service that we personally use to send our newsletters out. They have very high deliverability, have a ton of really great email templates to choose from, and are affordable very affordable. Ive tried 4 different email services and Aweber is by far the one I liked the best. Sign up for a Free Trial

* Constant Contact This is another email service a lot of my friends use them and like them. I personally prefer Aweber but, this is another service to try out to see if you like it. They also have great email newsletter templates for you to choose from so you can be up and running your email newsletter within minutes.

* Online Slideshow Service I never did this but one of our Platinum Students has been sending people from his email newsletter to an online slideshow that documents the property rehab and sale they just completed from start to finish so the newsletter subscriber (prospect) can see right there that the project is real and that you as the investor are active and doing deals. This builds huge credibility and is professional.

Well, that does it for Part 1, How to Explode Your Private Money Lending Program with a Newsletter.

Buenas Noches

~ P-Rid

Popularity: 92% [?]

Popularity: 95% [?]

The changes in financing options available for residential investment properties over the last 5 years are staggering. Lenders have relaxed the credit and income guidelines for qualification that formerly deterred many would-be investors from entering the real estate. In addition, the down payment requirement has been eliminated for borrowers who qualify. This article surveys the landscape for lenders offering residential investment financing products.

Types of Lenders:

The lender landscape can be broken into the following broad categories:

Conforming
Alt-A
Non-Conforming or Sub prime
Hard Money

Each of these offers loans for residential investment properties ( 1-4 unit properties).

Conforming

Conforming lenders are the A-Paper mortgage banks that cater to borrowers with excellent credit history and the ability to document income. Conforming banks offer loan products that can be considered plain vanilla in todays world of interest-only ARMs and low down payment loans. In terms of investor loans, conforming lenders offer full doc and stated loans up to a 90% LTV. A loan from a conforming lender with an LTV greater than 80% will incur private mortgage insurance, or PMI.

Conforming lenders always require a minimum of a 620 credit score, and use a computerized underwriting process to determine approval. Besides credit score, other important factors for approval include: payment history for mortgage and revolving accounts over the last 24 months, debt-to-income ratio, employment history, amount of down payment, and the amount of liquid reserves.

Some examples of leading conforming lenders are Countrywide, Wachovia, Suntrust, and Flagstar. While these are national lenders, any local bank or savings and loan would fall into this category.

Alt-A

Alternative A credit lenders, or Alt-A, offer aggressive loan financing products catering to borrowers with credit scores from 660 and up. While these lenders offer programs to borrowers with scores down to 620, the aggressive programs are typically not available to borrowers below a 660 middle score. Alt-A banks have driven the creation of innovative loan products over the last few years.

These programs include the many interest-only products, the Option Arm loan, loans requiring as little as 5% and now no down payment, as well as standard fixed-rate and arm products. The big difference with these lenders is the relaxed debt-to-income ratios available, the reduced income documentations (stated income, no income / no asset, and no doc), and the ability to add interest-only to most products. Alt-A lenders have popularized the use of 80-10 and 80-15 loans for investors to avoid PMI.

Some examples of leading Alt-A lenders are Aurora, GreenPoint, SunTrust, First Horizon, and IndyMac. Besides these, there are literally hundreds and hundreds of lenders that have emerged to fill certain niches.

Non-conforming / Sub prime

Non-conforming or sub prime lenders fill a growing niche borrowers with past credit problems. These lenders offer fixed and adjustable loan programs for borrowers with bankruptcies, foreclosures, judgments, tax liens, charge-offs, and many other credit blemishes.

These lenders typically price their loans using a matrix that evaluates credit score in relation to loan-to-value. Sub prime lenders will offer financing to borrowers with as low as a 500 middle score, and even have programs that cater to borrowers with excellent 700+ scores. The sweet spot for most of these lenders is a 580 or better middle, as they will provide 100% financing for owner-occupied properties at that score. For investors using sub prime lenders begin to offer products for borrowers with a 550 credit score.

The important thing to understand about these loans is that they are priced much higher than a conforming or even Alt-A loan.

The most popular product with these lenders is a 2-year Arm, with the idea being the borrower will refinance or sell the property in 2 years. Also very common with these lenders is a mandatory 2 or 3 year pre-payment penalty.

Some examples of leading Sub prime lenders are LongBeach Mortgage(division of Washington Mutual), Fremont Investment and Loans, Meritage Mortgage (division of NetBank), and New Century Mortgage. Besides these, there are literally hundreds and hundreds of lenders that have emerged to fill certain various sub prime niches.

Hard Money

Hard money lenders serve a very simple purpose they allow the purchase of fixer-upper or rehab properties with no money down. These lenders offer programs that none of the

Hard money lenders are typically private individuals or small companies that make very high interest rate loans (between 12% and 18%) based on the after repaired value of a property. They will lend the money to both acquire and fix-up the property, up to a LTV of 65% or 70%. The loan term for most hard money lenders is 6-mos.

These lenders are a great, albeit expensive, way to purchase rehab properties. After doing the renovation, one can refinance out of the hard money loan with a conforming/Alt-A/Subprime long-term loan.

Wide Range of Products
Some of the various products that are available today include:

100% investor loan 1 loan or 80/20
Credit scores begin at 660 only available from Alt-A lenders
95% investor loan 1 loan or 80/15
Credit scores begin at 600 available from Alt-A and Subprime lenders
90% investor loan 1 loan or 80/10
Credit scores begin at 620 for Conforming and Alt-A lenders and 560 for Subprime lenders
80% investor loan
Credit scores begin at 620 for Conforming and Alt-A lenders and 560 for Subprime lenders

All of the above can be found in either a fixed or ARM, and can usually have an interest-only option added to help maximize cash-flow. While any loan with a LTV above 80% will typically incur PMI, you can avoid this unnecessary expense by piggy-backing a first and second mortgage together eg. 80% first and a 15% second.

The above is a real brief introduction to the residential mortgage landscape, and should help orient new investors to the available lenders and products available.

Author: Brian Anderson, Broker, Anderson Lending Group. You can contact Brian directly at: brian@andersonlendinggroup.com. Learn more about Anderson Lending Group and the wide variety of investor loans available by visiting: http://www.andersonlendinggroup.com . You can apply online and receive a pre-approval within hours.

Popularity: 60% [?]

If you have tried to get a traditional mortgage, or even a hard money loan, to finance your real estate investments you know how hard it is to get loans in today’s post-credit bubble market. It is even harder to get “no money down” loans for your real estate investing business. If you are using traditional mortgage or hard money loans they can take two or three months to close. The problem you will quickly discover is that sellers are not willing to wait that long and get angry at having to continuously extend their contracts or wait for your loan approval.

Banks and mortgage lenders view mortgage loans to real estate investors as a higher risk than loans to home owners. They believe if the home owner is not living in the property and if trouble hits an investor will opt to pay their own home mortgage first and only pay for the investment loan if they can afford to make the payments. This puts the bank in a very poor position. As a result, most banks are looking for real estate investors to put up 30% to 50% down payment to protect their interest in time of trouble. VERY few investors have this kind of cash so it is very difficult or impossible to do deals with traditional mortgage or hard money loans.

Real estate investors still are not advised to use their own money to do their deals. Even if you have 30-50% saved for a down payment on your investment property, most real estate guru’s warn, NEVER spend your own money on real estate investments. Most beginners start their investment career saving up for a down payment, but the fact is, serious real estate investors do not use their own money to do real estate deals.

So how do you buy real estate investments if it is so hard to get a loan and you do not want me to use my money to apply to a down payment?

Buying real estate without using your own money IS possible, and it’s not difficult. With the right kind of deal, investment property can be purchased without a single penny of your own money.

Enter the world of Private Lenders… Private lenders are individuals with money to lend for investment purposes. They may or may not be wealthy, but they do have excess cash or assets available over and above what they need to live on. These individuals are willing to lend for a higher return than they can get with bank CD’s or money markets. There are no limits on the number of private lenders you can have or the number of real estate deals you can do using private money.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit.

Popularity: 14% [?]

How many of us have found a great deal but, for various reasons, just could not secure sufficient financing to make it work? Or how many of us have been in a deal where we needed refinancing but could not get it on the terms that we wanted? When that happens, we end up watching that opportunity pass us by – and in some cases there was a solution!

There was a way you could have secured the financing you needed to close that deal.

Private lending is often an overlooked solution to financing problems. is conceptions, myths and mystery surround private lending.
There are a variety of lenders that could be called private lenders, for which the fees and costs of financing vary substantially. The focus of this article is to discuss private individual lenders, not institutions or investment corporations. The private individual lender can be difficult to access and so many borrowers end up with private institutional lending which can be more costly when fees are added in. Some of the benefits to using a private individual lender is that, in many situations, there are more opportunities to customize the mortgage that the borrower needs and, in many deals, fees can be lower than other institutional private sources.

How does private individual lending work?

A mortgage broker who specializes in private financing can help a borrower find an individual who will lend ‘privately’ (i.e., not through a bank or institution but directly on their personal behalf) on a property. An individual lender seeks a better return than bonds and does not want the risk of the stock market; instead, an individual lender wants to make money off of real estate without directly owning it.

A private mortgage is generally short term in nature (typically 12 months), is secured by real property, and the return is the interest that the borrower pays with, possibly, a lender fee.

The lender will make an offer on the mortgage stating the terms that they require to lend the mortgage. There can be a negotiation and private lending offers opportunity to tailor mortgage requirements more so than an institution who only offers certain mortgage products that may or may not be open and may or may not have other requirements. When an agreement is reached, a lawyer or notary will prepare the necessary documents and a charge will be registered against the property just like any other mortgage. Private financing does cost more that conventional financing, and private money is a market like any other which is moved by supply and demand; the price of which fluctuates accordingly.

The following are some of the situations where private financing offers significant benefit:

1. A private lender, may lend more on the basis and merits of the property so if a borrower has less than perfect credit or lack of credit or has a difficult time proving income but the property itself holds good value, the latter can make the deal work for a private lender whereas a conventional lender will decline it.

2. Private borrowing can also work for properties which are held in a trust, even a foreign one. Most banks won’t lend to a trust because they require a personal guarantee.

3. Private lending is also a good solution for temporary needs, such as when a borrower feels that in a short time their credit may be good enough to get conventional financing or if they are waiting for another deal to close in order to release funds to use for the new deal. This works well with private money because most private mortgages are for relatively short terms, 12 months or 24 months.

4. Private mortgages can even be negotiated to be ‘prepaid’ mortgages, such as when the borrower doesn’t want to make monthly payments; this way the borrower simply pays the whole amount (including the capitalized interest amount) back at the end of the term. This especially makes sense for someone who is selling their property and knows they will have the funds to payout the mortgage within a year.

5. Private lending is also a potential solution if the location of your property is outside of where a conventional lender is willing to lend.

A private lender has the same rights as a bank when it comes to being paid. If the mortgagor is behind on payments the private lender has the right to pursue foreclosure just like a bank would in accordance with provincial or state laws. As well, if payments are late, it is typical for a charge to be added which would be defined in the mortgage agreement. Some private mortgages may require the borrower to have life insurance but it is not necessarily a standard clause. What is important to remember is that for the extra cost of financing the borrower has the opportunity to negotiate what terms are important to them to make the deal work and a private mortgage broker can help with this as a mediator between the borrower and the private lender.

Private lending might be the right solution for you, but it’s worth nothing that it is not a solution to buy property with no money down. Realistically, in the current market, most private lenders will not lend above 80% of the property value, so you need to have at least 20% equity (and commercial properties need even more). Private mortgages can be in first or second position, and possibly a third depending on the amount of equity. They can be used for residential, commercial and even in construction financing.

I invite you to learn more about Private Lending and get my ebook titled Private Lending Secrets for Real Estate Investors! by Clicking Here Now!

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit

Popularity: 54% [?]

I was scrolling through Twitter posts the other day and one of the people I follow had posted this joke:

A man walks into the bank and says to the bank manager “I’d like to talk to you about a loan”. The bank manager says “Great! How much can you lend us?”

I laughed because Dave and I had gone into the bank earlier in the week to make some large cash withdrawals. We owed my brothers a bit of money for their help with our rental property renovation in June, and we had to juggle money around to a few different accounts for property taxes and other upcoming bills. When we started giving the bank teller the sums of money we were going to withdraw, she started to panic saying that we should have called the bank ahead of time to let them know that we were going to be taking out more than a few thousand dollars in cash.

“But – you’re the bank! If you don’t have money, who does?” I was thinking.

Of course we smiled and apologized and eventually they were able to round up enough cash to meet our requests.

We had to laugh though – if you can’t go to the bank to get money where can you go?!

Of course, you might feel the same way when it comes to finding money for your real estate deals! The lenders have added so many restrictions that people all over North America are finding it darn near impossible to find financing for rental properties. In Canada, in particular, the regulations have changed so much in the past few months that people with multiple properties (like us!) are faced with a mountain of paperwork and a whole lot more trouble than ever before.

But, as we’ve said over and over, we don’t focus on the obstacles we’re facing. Instead, we place our attention on the ways we can get around those obstacles. One way to get money for your deals is to turn to a private lender.

I invite you to learn more about Private Lending and get my ebook titled Private Lending Secrets for Real Estate Investors! by Clicking Here Now!

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit

Popularity: 13% [?]

Wow, has the real estate market changed in 2009! Real estate investors have been shut out of traditional mortgage money unless you have a 9000 credit score and a 50 year work history without missing one day of work (ok enough of the weak humor but you get the idea). Even hard money loans are HARD to get as they have all gone out business.

But just as the mortgage market is shunning the real estate investor – we are starting to see signs that the real estate marketing is starting to bottom and home prices have even gone up in some markets.

So how do you take advantage of this buying opportunity if you can not get mortgage money from traditional sources?

Private lending is the answer. You can start borrowing money from private lenders to fund your real estate investments. Raising private money allows you to take advantage of the low prices without ever using any of your own cash or personal credit.

There are several significant benefits and advantages of private money lending compared to mortgage money or hard money lending.

First, you can begin buying more houses for “all cash” offers and drive significant discounts from sellers who are highly motivate to get cash versus waiting and hoping another buyer will get a mortgage approval.

Second, very simple paperwork with a typical private lender transaction only requires 3 or 4 documents with less than 20 pages.

Third, you control the terms and conditions under which you will borrow money and the lender will lend. You tell the lenders what rates of interest you will pay, how long the term is and all the other conditions are set by you not a bank or hard money lender.

Finally, you can turn many non-deals with no equity into super profitable deals with substantial equity by paying off existing debt at a discount… using private money.

Six Steps to develop a private money program for real estate investors:

1. Develop your private lending program and the terms and conditions under which you will borrow money and repay your lenders
2. Build your info/credibility kit to establish yourself as real estate investing expert
3. Create a marketing plan with 5 to 10 different marketing techniques to attract potential private lenders
4. Create your group or one-on-one presentation
5. Schedule group or one-on-one meetings and follow-up with potential lenders
6. Present and close deals with your potential lenders

Given the new market realities, private lending may be the only option if you want to buy and own real estate investments and take advantage of the low prices.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit

Popularity: 19% [?]

One of my coaching students recent asked me how to raise money for real estate deals since she was having NO luck raising money through hard money lenders. In fact, she had just paid some “guru” $25,000 to take a course and the whole course was about how to raise hard money.

Once she and many of the other students in the Guru’s class start talking they discover that no one was having any luck raising money with money hard lenders. They quickly learn that most hard lender money are out of business. The few that remain have such high lending requirements that the deals made no sense when you have to put up 50% of the proceeds, sign personally, put up cash reserves and pay interests north of 25%.

She was very confused and upset to pay this kind of money to get information that was grossly outdated and useless in today’s world.

I quickly explained that the answer of how to raise money for real estate deals today is to use “private money” not hard money. The difference is with private lending you are dealing directly one-on-one with a private person who may want to invest in your business. You are not dealing with banks or hard money lenders who have no money in today’s post financial crises.

Private lending is a consistent source of money to purchase discount real estate deals that you can go back to again and again and again. The more you use private money lenders, the more money that will become available as you as you develop that relationship.

It is important that real estate investors understand that for the next several years you will need to use and develop a private lending program as other sources of money will dry up and be very difficult to get.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by going to http://realestatewealthtoday.com/FREE-eBook.htmlPrivate Lending Secrets

Popularity: 16% [?]