Now that the mortgage market for buying investment real estate is all but dead – investors need to have other sources available or go out business. Fannie and Freddie will no longer be available for investor mortgages, traditional banks and saving and loans will not touch investors loans for many years to come and hard money lenders, when available, can have total cost over 25%.

The answer is private money raised from people, not banks, through a process called private lending. Here are the four top ways to attract and develop your group of private lenders.

Private Lending Group Presentations

A private lending presentation involves getting 5 to 20 people into a room and doing a group presentation where you lay out the details and benefits of your private lending program. This may not be for everyone depending on your comfort level of talking in front of a group of people. But there is big advantage of doing group meetings. When people start to ask questions and tell positive stories a certain level of group think starts to take effect and can be very powerful on the attendees.

One-on-One Meetings

If you are not comfortable with group meetings – one-on-one meetings are a great alternative. I generally recommend a breakfast meeting in a quiet restaurant where you can have 15 to 45 minutes of time with your prospect. Like the group meeting you need to lay out your private lending program’s details and benefits.

Out of Town Prospects – Creditability Kit

If the potential prospect is out of town you will need a good creditability kit you can send in the mail. It is very important to follow up two or three days after you send the package to see if they have any questions. Even if they do not participate right away, keep in contact and they may invest some time down the road after a number of follow up contacts.

Existing Private Lenders

If you already have a private lender, or lenders, be sure to keep asking them if they would like to participate in more deals. You will be shocked that most investor only give a very small investment to start and wait to see how things turn out before giving you more money. So keep asking and do what you say you are going to do they will develop a better relationship and trust level with you. As the relationship grows they will invest larger and larger sums to grow your real estate investing business.

And 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://www.learnrealestateinvestingblog.com/

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 Kit

Popularity: 26% [?]

As a real estate investor, you may feel like you sometimes take on the role of ‘teacher’, trying to explain passive investing, private lending and self-directed IRAs to prospective business partners. You probably have discovered that this concept is completely foreign to the average consumer. As a matter of fact, I can tell you that most “investment advisors” who work for mainstream firms have never been educated on self-directed IRAs and often even tell their own clients that IRA investing is fictional or even illegal.

One great marketing strategy is to build an email auto-responder series which will deliver small chunks of education to your prospective partners week-over-week, helping to build their knowledge level and confidence about your business opportunity. Emails provide that steady stream of information in a way that is professional and consistent (and without being pushy or overbearing).

Auto-responders are emails that are pre-scheduled for delivery on specific days based on the lifecycle of the subscriber. For example, “Module One” of a six part series can be sent on the first day someone is added to your email list. “Module Two” could then be pre-scheduled to be sent on the third day after the person is added to your email list. This series of emails can go on until all the modules are delivered, or you can create a series of emails that go on for as long as a year.

When educating prospective passive investors or investment partners, you want to share information and provide education that helps them decide for themselves that passive investing would work for them. You don’t want to bombard them the emails that scream, “please, I’m begging you!” or “act now, now, now!” Your goal is to become a trusted and loyal business partner and you achieve that goal through demonstrating your outstanding knowledge level and education on the topic. Becoming involved in passive investing or becoming a real estate private lender is a big financial step, and you want to demonstrate that they can have absolute confidence in you and your knowledge.

Most material about passive investing or private lending is written to teach active investors how to buy property with private money. But as an educated investor, you already know how valuable private money is…it’s the person you’re introducing the idea to who needs the education, right?

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor 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 eBook go to Real Estate Investing Blog.

Popularity: 30% [?]

There are so many misunderstandings related with private money lending for real estate investors. In fact, most real estate investor do not understand or participate in private money because they do not understand what it is or how to get started. There is a long a history of private money lenders investing their own money in real estate investments. Like many things, private money comes and goes depending largely on interest rates and the demand from real estate investors and other investors.

Traditional lenders always gave loans based on two things: collateral and your personal pledge to repay. Lenders wanted to lend to about 70% to 80% of the assets values (collateral) and wanted you to be trust worthy based that on your credit score and salary. Private money is different in that the loan is almost entirely based on the collateral and not your personal pledge to repay. This does not mean private lenders do not do some background checking and if you have a history of not repaying things it is unlikely you will be participating in the private lender market.

The definition of a private lender is an individual that you can negotiate directly with on a personal basis to borrow money for real estate investments. The money can be used to purchase rental real estate investments or to supplement funds borrowed from a bank to cover down payments.

Private money became very popular as interest rates on tradition Money Markets and CD’s dropped below 5%. Entrepreneurs and other people with extra cash started looking for higher interest rates (north of 12%). If they could get the high interest rate and enough security (collateral) they were willing to do loans without personal credit or the need to be worried about credit scores. That started the revolution that you see today where private money lenders are as big and popular as hard money lenders were 10 years ago.

This trend toward private money will remain as long as traditional interest remain low and traditional mortgage and hard money remains hard to get.

Finding private money is not nearly as difficult as people think. We utilize a number of low key person to person marketing techniques to attract potential lenders. However, I strongly urge you not to use any large public sources of advertising, such as Craig’s List, or you may get a call from the SEC and you do not want that.

Heres how it works first, you do some simple marketing to find individuals interested in earning 9% to 15% interest on investments secured by local real estate. You will find these prospects everywhere. They belong to your local real estate investor clubs, churchs, civic clubs, parent organizations, friends, family or even neighbors.

You will be surprised how easy youll locate them and soon, they will be searching you out. Just let everyone know that you pay high rates of interest for loans that are secured by local real estate.

As prospects express interest, you explain that the investments are secured by local real estate and do not exceed 75% of the after repair value of each home. Each investment is based on a specific property, and they can decline any property which they are not comfortable with. All you require is that they approve quickly and can fund within 7 to 10 days.

I invite you to learn more about Private Money and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor 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 eBook go to Real Estate Investing Blog.

Popularity: 32% [?]

Three common sources to find your private lenders

Author: Alan Cowgill
There are a number of candidates out there for your private lending needs. I have a thorough description of how to make it happen in other books and products that I have available

But just briefly, it could be people who have bought a bank CD. They probably wont need that money for a while and you can show them that there is a better possible performance by investing in you.

There are people who have lost their job and have an old 401k that can be rolled into a self-directed IRA. That can then be sent into a private investing plan with you. Most people dont have any knowledge of self-directed IRAs. You can really impress them with your knowledge of this investment product.

There are people who have an IRA that has been through a world of hurt in the stock market. These people would love to have an investment that earns them some money. If you can explain how private lending can make them money, youre probably in.

There are also people who are selling an extra house. Some of them got the house through an inheritance or a rental that they dont want anymore. What are they going to do with the proceeds? They probably dont know. You can guide them buy showing them the possibilities you have for their money.

Once you get a private lender or preferably a team of private lenders, you have to start investing the money wisely in the right real estate properties.

In this market, it is easy to buy low, fix up and sell high. Many of these private lenders want to get into real estate investing but dont want to do all of the work they believe they would have to do.

Your plan needs to be easy for them and they dont have to do much of anything. They can tell their friends that they are doing real estate investing and wow them.

This is good news for you because those friends can become referrals.

It is much easier than it seems.

About the Author
E. Alan Cowgill is the owner of Colby Properties, LLC. and President of Integrity Home Buyers, Inc. Since 1995, Alan has bought and sold hundreds of single family and/or small multi-family investment properties in Springfield, Ohio. Alan uses Private Lenders, not banks, to fund his real estate purchases. By doing this, he has created his own private bank of $2,000,000 in funds. Alan looks for situations where the seller, the lender, and the eventual homeowner can all “Win”. He is not a Realtor, but a Private Investor, author, consultant and national speaker. He has been asked to speak on the topics of Investing for the Beginning Investor. and Finding Private Lenders. His home study system, Private Lending Made Easy, shows new and seasoned real estate investors how to find private lenders for their own real estate business.

Popularity: 31% [?]

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: 93% [?]

Popularity: 88% [?]

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: 62% [?]

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: 29% [?]