Private Money Lenders
Private money lenders anyone?
Whether you are a new real
estate investor or a seasoned pro, you will need to broaden your lending
sources and seek out private money sources.
Most banks cap the number of loans you can have at one time. When you find the deal, you need the money now. Or you loose it. Even if you have great credit and a healthy bank account...even if the bank would do your loan...you might loose the deal because of the time the bank would take.
Private lending is the answer. There is so much of it available right now that you can find it quickly and put it in place working for you. Speed and easy access is readily available right now for you.
Here's how it works. People are needing their money to make more than a CD will ever offer them. They would love to earn 10% interest on a secured investment. So we here at KISS Capital have sought out those folks for you. That list is constantly changing, so keep in close contact with us for when you need that fast cash.
Some tips for money for the deal include:
- Loan not ot exceed 75% loan-to-value (LTV) of the after repaired value (ARV)
- Gather your documents now so when you need a loan fast, you have your package ready to go (See Loan Package Checklist below)
- Check the appeal value of the deal to a lender: Would you want to invest your money in this deal? If you lent money on this deal, and got the deal back, would you still feel like you made a good investment?
- Are you going to make money on this deal!!!
Private Money Lenders Loan Package Checklist
- Executive Summary: I suggest you have a generic executive summary that you can use to quickly plug in your current property details
- Schedule of Real Estate Owned: Always add a property or delete a property from the schedule when you are buying and selling
- Business Entity Documents: Have an e-copy and a hard copy in your loan package at all times. Even lenders you have borrowed from before can misplace or even shred these documents, and you will need top provide them again
- Valid ID: have a copy of your drivers license, passport, etc. readily available
- Social Security card: have a copy on file
- Bank Statements: If you just routinely print out a copy of these and place in a folder, you will have them at your fingertips
- Retirement Accounts: Again, routinely print out a copy and keep in a folder for easy access
- Draw Schedule: you will probably have to include this, so a preliminary draft that can easily be adapted for each house is a good item to have on hand
- Contractor Contacts: keep up with the contractors you are using. Be sure you have their current license and insurance information. This can really bite you if you have submitted your package only to find out the contractor did not renew his license as he was supposed to
- Insurance: be sure you have a good insurance contact still
In closing, always be ready to take advantage of a great deal by having Private Money Lenders at your fingertips!
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