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.
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.
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.
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 â€œPaint Your Wagonâ€ for two reasons: To see a â€œvery young Clint Eastwoodâ€ and to hear the Lerner and Loewe song â€œThey Call the Wind Maria.â€ While her home library in Round Lake didnâ€™t have the movie, Cunefare was â€¦
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
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
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!!!
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.
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.
I am a note broker and I am looking for people that have mortgage notes to sell. How can I get clients?
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?
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!
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
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…