http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/%2B%2Bfour-reasons-for-firing-private-lenders.html http://www.articletrader.com/finance/real-estate/%2B%2Bfour-reasons-for-firing-private-lenders.html Fri, 13 Jul 2007 00:00:00 -0500
I've spent all this time and effort trying to figure out how to get private lenders to fund my real estate deals and now
you write an article on firing them! What are you thinking?!

Well, stay with me here and I'll explain. Most of a real estate investor's focus is about how to attract and keep private
lenders.

But what if a lender doesn't make your life better?

You got into real estate to make your life better, right? Well, shouldn't you work with people that make your life easy?

If you don't have private lenders at this point, being selective about them may be something you've never even
considered. If you do have private lenders, are they easy to work with or are they difficult to deal with?

Once you've done your homework, gotten your real estate education, and taken all the steps needed to attract private
lenders, you could quite possibly have an army of people wanting to loan you money. This is an awesome position to
be in. I've been there and it gives you a great opportunity to work with some pretty fantastic folks.

So what is a scenario where I might not work with a private lender who is trying to throw wads of cash at me?

1) Well, let's say they want to be too involved...

Your lenders are going to want you to succeed and are going to offer some advice from time to time. Sometimes a
well-meaning soul will want to "help" me by offering advice in an area where, frankly, I'm an expert.

I'm not talking about those folks. I'm talking about annoying, aggressive, overbearing, pushy, opinionated folks.

I've spent tens of thousands of dollars on my education and have been in the business for over 10 years. I know how
to do this business. I have definite ideas about the way I want to run my real estate business. I attend seminars all the
time. I'm always striving to learn and to improve.

This is where you need to have a solid education so you don't get sidetracked because you are going to run into these
folks.

Let's be clear on your private lender's job. Their job is to write a check and then set back and wait for a bigger check.
They give me money; I send them interest payments. It is the American Dream for them and you.

2) Another scenario I refuse to work with a private lender is when you find that someone wants to work "with" you and
even be a partner.

They believe that the money they invest in your business gives them the right to offer advice and they expect you to
take it, in the way you run your office, what properties you purchase, what rehab workers you hire, and so forth.

Just be aware that some folks will want to be a partner and if this is not what you want, be prepared to correct the
situation before it goes too far in the relationship.

3) They want to set the rules on how you should pay them. Points, interest, etc...

Hey, that is what banks and hard money lenders do. When I deal with private lenders, I set the rules and that is the
whole idea and my bottom line. It's my way or the highway.

4) Some folks are just plan hard to work with.

Ask the same questions over and over. They don't trust you and treat you like you are going to jip them.

The list goes on and on.

Do you cringe when they come in your office? If so, it's time to let cut them loose.

So how do I fire private lenders?

Well, I can work with most private lenders. In fact, I love my private lenders. I just stay away from people that
make my life tough and just work with the folks that want to work with me and make my life better.

The easiest way to fire private lenders is to never do business with them in the 1st place. If you can pick up on their
personality before any money is loaned and back away from them, it is the easiest and the best.

If they want to partner and/or set the rules. Just say no.

If they have already loaned you money, get them paid back and refuse future loans.

My advice is to always be professional about it. I'm gracious. I simply explain my position and my rational for what
I do without hurting anyone's feelings.





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Alan Cowgill is a national speaker, author, and real estate entrepreneur. Alan had bought or sold over 200 investment properties. His step-by-step system "Private Lending Made Easy" teaches Real Estate investors and mortgage brokers how to find private lenders. Contact Alan at 937-390-0816 or 866-831-3540. For a FREE audio CD go to http://www.PrivateLendingMadeEasy.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/the-secret-method-to-skyrocket-your-real-estate-investing.html http://www.articletrader.com/finance/real-estate/the-secret-method-to-skyrocket-your-real-estate-investing.html Fri, 22 Jun 2007 00:00:00 -0500
When I started my Real Estate career, I heard about the necessity of finding private lenders. In fact, I even found two. But then I stopped. For four years I PROCRASTINATED. I didn't get it!!! For four years I continued to go to banks and jump through their hoops.

I also had used hard money lenders, but found them VERY expensive.

It wasn't until I quit my J.O.B. and found that banks wouldn't loan me money that I realized that I needed to bring private lenders into my life quickly.

When I took that step, everything changed for the better.

What are some of the advantages of using private money for your real estate investments? Well, if you haven't decided whether or not to use private money, I decided to lay it on the line here for everyone to see.

- Fast & you can buy at a discount
- No credit check & doesn't show up on your credit report
- Unlimited funds
- Control, you set the rules
- Help friends, family & meet a great group of people
- Get some of your profit when you buy
- Cash flow
- Flexible
- Can make offers with confidence
- Can structure quick and more profitable exit strategies
- Saves you money
- Cheaper than a partner
- Fund the purchase of defaulted paper
- It is the foundation for a very profitable brokerage business

In this business when a deal comes along you have to move fast. Many Real Estate investors have watched a deal slip through their hands while they waited for the bank to approve their loan. Once you have private money available, that won't happen to you! You can make an offer knowing you can go ahead and set a closing date. Meanwhile, your competition is wondering how you did it so quickly!

Perhaps the most unexpected aspect of using private lenders is the accumulative response by satisfied lenders.

After my first seminar I got only a few responses, at first. Then came the steady, unending trickle of eager lenders. Today, that trickle is more like a river!

Maybe it’s the credibility of one investor to another, or the proof of another’s prosperity through investing, but word of mouth is so powerful that once you’ve established a few private lenders, you’ll have a continual revenue stream with which to invest.

A real estate guru told me, “There’s plenty of capital out there. All you have to do is ask, and make people understand what you’re using it for and how safe they are. It’s really not difficult to get it.” Simply educate lenders about the high rate of return available through your real estate investments, and watch them line up to give you money!

Incredible, I know.

But listen to this: here are a few of my recent deals, made possible only because I had the cash on hand to close these deals quickly.
• Short Sale: $59,900 bank discounted to $25,000 = net $32,900
• Rehab: $51,000 purchased for $15k plus $13k rehab = net $23,207
• Subject to: $85,000 for $71,000 + $1,264 repairs = net $12,736
• Wholesale: $28,000 purchased for $22,000 = net $6,000

That’s $74,843 in only four deals, and all because I had the confidence and flexibility of assured funds through private lenders.

Today I shake my head at the thought of it, but once upon a time I was practically begging for bank loans – for the opportunity to wait in line, fill out applications, and wait weeks or even months to see if they would deem me and my prospective property a good “risk.”

I could have been using private lenders years earlier, but I hesitated. I lacked confidence and I wasn’t sure where to start. If I could give one piece of advice to any budding investor it would be this: Start today.

Don’t let even one more deal pass you by. You never know where life is going to take you. That one, 2 a.m. infomercial started me on this path, and today I’m the one appearing in the infomercials, teaching people how to change their lives through real estate.

With private lenders in line, you’re always equipped with the funds you need to grab each opportunity as it arises. Your confidence will soar and you’ll be making the kind of money of which you’ve always dreamed.

Private lending allowed me to finally take control of my destiny. You’ll gain nothing by waiting. Discover the key to true freedom and big money in real estate investing. Private lenders are out there. They’re waiting for you…




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http://www.PrivateLendingMadeEasy.com

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