How I Stopped Getting Private Money Loans And Got More Private Money

October 31, 2010 by  
Filed under Private Money Lending

When I first started raising money from private investors for my real estate investments, I thought pretty much like everyone else did. Private Money ‘Lenders.’ My pitch to prospective investors was in essence: “will you loan me money secured by real estate?

You’re probably familiar with this pitch. Maybe you’ve used it. Perhaps you’ve had success, perhaps not (at least yet). One day I was reading a biography on Warren Buffett, billionaire investor and Chairman of Berkshire Hathaway. Buffett has generated returns in excess of 10% higher than the market for the past 45 years. When Buffett took control of Berkshire Hathaway in 1965, the share price was $20. Today the share price is $122,000.

Hmm…

Needless to say, I have always thought following and trying to copy Buffett as much as possible – to the greatest extent I could – would be helpful in making more money. Well, one day I was reading a bio on Buffett and I was really enlightened upon reading something not widely talked about, with regard to how Buffett got started in his investing business. You see, Buffett started his investing career by forming partnerships. He brought other people’s money into the partnership, invested it and then he got to keep a part of the profits made. Starting out with $100,000 in partnership funding, he soon had people all over his home town (Omaha) wanting to ‘get in’ with him. After a few years, he had plenty of capital and was on his way. Those first few investors were a catalyst for long term wealth.

The most interesting thing, though, was how Buffett structured his partnerships. Everybody that came in as a partner owned a proportional interest in the partnership. Buffett earned a piece of the profits the money generated (by his management). What Buffett did NOT do, was borrow money. He had equity investors.

A thought hit me when I read this: “I should do the same thing.” Instead of borrowing money, secured by mortgages and jumping through hoops each time a deal closed (buy side and sell side), I would raise an amount and each investor would own a proportionate interest in the company, and I would keep part of the profits generated.

BINGO.

This was really rocket fuel at the time. My business started growing much faster after I started raising equity capital versus only private money loans. Another big side benefit of this revolution in my business was that I was able to bring in more private money, because my offering had an appeal to higher net worth investors that could write bigger checks. These investors were less concerned about security and collateral and more concerned about returns and tax consequences of investment. Off and running I was. It doesn’t take much to give your business a boost and you never know where the next “lightening” moment is going to strike you.

I heard a long time ago that “luck is when preparation meets opportunity.” With real estate, the opportunity is there right now, so get prepared and then prepare to get lucky.



Adam Davis is a real estate investor, author, speaker and founder of Ultimate Private Money. He teaches real estate investors how to raise capital from private investors. Adam has completed hundreds of real estate deals- from single family house flips, lease options to apartment buildings, land contracts and hard money loans – all with none of his own money. All told, he has raised millions of dollars from private individuals to finance real estate deals. For a FREE audio program on how to get private money go to: http://www.UltimatePrivateMoney.com.

SCOTT BURNS: Investing in variety of closed-end funds could increase risk

October 31, 2010 by  
Filed under Private Money Lending

O’Malley, Ehrlich focus on economy
Ehrlich wants tax cuts; O’Malley wants more investment The owner of a Western Maryland camp says strict new stormwater rules are crippling his business. A winemaker complains that state loan guarantee programs aren’t helping him secure credit to fund renovations to his vineyard. Another businessman can’t understand why he has to pay such high costs for unemployement insurance.

Read more on Baltimore Sun

Interlibrary system gets state funding
Deborah Cunefare of Round Lake Park recently borrowed the 1969 movie “Paint Your Wagon” for two reasons: To see a “very young Clint Eastwood” and to hear the Lerner and Loewe song “They Call the Wind Maria.” While her home library in Round Lake didn’t have the movie, Cunefare was …

Read more on Lake County News-Sun

SCOTT BURNS: Investing in variety of closed-end funds could increase risk
I have about $300,000 in various stocks. They yield about 4.5 percent to 5 percent in annual dividends. My financial adviser has suggested that I invest in 7 or 8 closed-end funds that should yield about a 9 percent annual dividend. Would this be a good move?

Read more on Daily Breeze

My PC Money Machine Automated Income System

October 31, 2010 by  
Filed under Private Money Lending

Pay Off Your Bills With MPCMM.com! Earn Instant Payments and Make Money From Home With Residual Income. Complete Details Included With Simple Steps. Visit and Earn More Today!
My PC Money Machine Automated Income System

Private Lenders I AM PLEADING AND BEGGING FOR A “YES” TO 80% LTV?

October 31, 2010 by  
Filed under Private Money Lending

PLEASE PLEASE HELP ME IF YOU ARE A HARD MONEY LENDER OR PRIVATE LENDER
I NEED HELP IMMEDIATELY TO PREVENT A DEFAULT & FORECLOSURE

PLEASE CALL ME ONLY IF YOU CAN SAY “YES”
YES TO 80% LTV
YES TO EQUITY BASE ONLY (MIDSCORE 500) NO CREDIT CHECK
YES TO SHORT TERM LOAN (APPOX. 6 MONTHS)
YES TO ADDITIONAL CASH OUT $7,000.00
YES TO FUNDING WITHIN 5-7 DAYS

HERE IS THE BREAK DOWN:
HOME IS LOCATED IN GILBERT ARIZONA WAS APPRAISED 2MONTHS AGO $300,000.00 (WILLING TO USE THIS APPRISAL)
1ST $171,000.00 (IN DEFAULT $6,000.00 TO BRING CURRENT)
2ND $ 14,300.00 (CURRENT WILL LEAVE IN PLACE FOR NOW)
3RD $ 34,000.00 (DEMANDING FULL FULL PAYMENT ON BALLON FACING FORECLOSURE)

NO I AM NOT INTERESTED IN REFINANING THE WHOLE LOAN AT THIS TIME(WILL RECONSIDER IF LOAN CAN BE DONE WITHIN 5-7 DAYS)
NO I AM NOT INTERESTED IN SELLING MY HOME SHORT TERM AND LEASING BACK
NO I AM NOT INTERESTED IF YOU ARE NOT IN THE UNITED STATES

PLEASE PLEASE CALL ME OR EMAIL ME ANYTIME IF YOU CAN SAY “YES”!!!
I BEGGING AND PLEADING FOR SOMEONE TO HELP WITH MY SITUATION
CALL @480-277-0577 OR EMAIL MCOOPD1@YAHOO.COM WITH ANY OFFERS OR SOLUTIONS.

THANK YOU SOOO MUCH!!!

Ashburn Virginia Hard Money Lender

October 31, 2010 by  
Filed under Private Money Lending


www.hardmoneybankers.com We are a Virginia hard money lender that funded this rehab project. We are looking for more local real estate investors to team up with. Actively lending hard money in DC, Maryland and Virginia. Check out our website.

Using Hard Money Loans For Real Estate Deals Can Protect Your Personal Funds

October 31, 2010 by  
Filed under Private Money Lending

Whoever said that you should spend your own money when investing in real estate must be clearly out of his mind. Many real estate gurus and investors warned against using your personal funds and credit on real estate projects. According to them, an investor should not put his credit or his personal assets at risk. They stressed that if something happens to a deal, an investor who put his house or money on the line is bound to find himself kicked out of his own home or worst, filing for bankruptcy.

This is the reason why most investors use hard money loans for real estate projects. By using other people’s money to finance a real estate deal, they can protect the material possessions that are important to them and their family.

Hard money lending is said to be mostly suited for funding real estate deals. It is basically a type of financing wherein a collateralized property’s after repair value is used to determine the eligibility of a loan application. If the property can attract a good price after it has been repaired and renovated, then the money will come to the deal.

Not all hard money lenders, however, are not afraid of providing hard money loans for real estate deals. Just like other entrepreneurs, these non-traditional financiers want to get the assurance that their investments will pay off. Therefore, it is up to the real estate investor to calm their fears by finding a highly profitable property and offer it as security for the loan that he or she is making.

One of the biggest advantages of using hard money loans to fund real estate investments is that an investor can obtain the funds he needs no matter how good or bad his credit score is. Like what was mentioned earlier, hard money is asset-based, which is why lenders are not particularly interested with a borrower’s credit rating.

Another selling point of hard money loans is that the needed funds can be released immediately. Unlike when borrowing money from banks and other traditional lenders, a real estate investors doesn’t have to wait for weeks or months just to obtain funding. Because there are no mountains of paperwork to be processed, a hard money lender can make a decision a few days after making an appraisal on the collateralized property.

Want to obtain hard money loans for real estate projects? Find the best hard money lenders in your area by logging on to www.RehabHardMoney.com.

RehabHardMoney, the best place to look for hard money lenders and hard money borrowers. We specialize in bringing hard money lenders and hard money borrowers together.

I am a note broker and I am looking for people that have mortgage notes to sell. How can I get clients?

October 31, 2010 by  
Filed under commercial mortgage lenders

I am looking for clients who have airplane notes, mortgage notes, mobilehome notes, boat notes, car notes, land notes, commercial notes, business notes. I have a website that they can post their items on for free that will get them immediate response. How can I reach these types of people?

Nationwide Commercial Mortgage Loans & Small Business Financing

October 31, 2010 by  
Filed under commercial mortgage lenders


www.CommercialMortgageTips.com Stop Wasting Time Shopping For Your Commercial Real Estate Financing. We Have Access To The Largest Number Of Commercial Lenders In The US. Call 561-208-6469 NOW!

Broker Skills – Commercial Mortgage Brokering

October 31, 2010 by  
Filed under commercial mortgage lenders


Learn to become a commercial mortgage broker with the Broker Skills Package. This package has been put together by Fred Dupuy. Gain from his 30+ years of experience in the Commercial Financing industry

Hard Money Lenders in Seattle

October 31, 2010 by  
Filed under Private Money Lending


www.lendinguniverse.com Hard money lenders in Seattle, Washington are funding residential commercial and even vacant land loans. Go to http to contact hundreds of Seattles private investors, hard money brokers and credit union who can potentially arrange your loan fast. In addition to…

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