OfflineI am getting a lot of messages in my inbox about " How to get the money" to rehab houses and lots of them. So for those that messaged me and those that didn't, I thought I'd give my thoughts and experience on this topic.
This may turn in to a long post and my grammar will likely suffer as I don't have the time to look it over:).
#1 Face your fear- the first real estae seminar I went to was the catapult to my finding the money. The second day into it they were priming us up to "need" the course. By that timemy gut was burning and my heart was about to bounce out of my chest as I knew this is what I was meant to do. At the end of the second day we were instructed to raise money to pay for these courses... anywhere from 10k-60k... at that time I was worth about $500 bucks. To make a long story short I was calling anyone I knew that may have the ability to contribute a couple thousand. Although I didn't raise any money, I knew deep inside that I just conquered my fear of asking for money and that of itself was worth far more than the classes couldve given me.
#2 Ask and you shall receive- A couple months after the seminar I was out hustling to try ad make things happen. I was literally sending out 30-40 offers a week. From those offers I put 8 properties under contract. Keep in mind here I really had no idea what I was doing! Im laughing just thinking about it! Because I still wasnt buying them cheap enough I didn't have the ability to wholesale them like I had planned, but it didn't mean they weren't right for a rental. So I went on a hunt to find money, QUICK! I found one lender on this site that loaned money from his IRA... Off a 45k inveestment he made back $7000, very good investment for him and I was able to buy the property in cash, rehab, refi and pull a little money back out. One of the others I talked my partner at the time into buying. We bought it for 14k, put 15k in it and refid it at 55k. The 3rd property I started calling any of the investors I could find in my area and asking them if they new of any hard money lenders that would loan money on this property. I was looking through the phone book under real estate, calling I buy houses signs and so on. I found one guy that referred me to another. To this day, the hard money lender loans me money on multiple deals at a time. Btw, I gave the referral investor $500 just for giving me the other investors information. Again, long story short... I simply asked people how I can get the money or if they had any way of loaning.
#3 Partners- I still use them! Though I'd rahter soak up all the profits, partners may be a neccessity. I've used a partner to build a rental portfolio, I've used a partner to do a wholesale deal, and I currently use a partner to do a good majority of my flips. If you can show a good deal, you can find a partner to go in on it, guaranteed!
#4 People with money want to make more money- This rule will never change! Once I started to have a little success I noticed that the money was starting to be easier to find, but it still wasn't at my fingertips the way I wanted it to be. Although I was still working with my hard money lender, the majority of the money I was able to get was between 20-40k which made it hard to do the amount of deals I wanted to do. I knew of guy in town( through a real estate attorney) that financed different businesses and multiple real estate deals. I went after this guy with a bit of an obsession. I had been rejected by his secretary a few times. Finally, I called again and his mother happened to be working in the office ( a sweet old lady) she put him through to me. Although he put me through the ringer on the phone, I finally said, " I tell you what, give me 10 minutes to meet with you, show you the pics of my properties, the track record Im having and if you still don't want to do business I won't bother you anymore". I met with him a couple days later, sealed the deal, and at this time we currently have approx. a million dollars out on numerous different deals. It was a mixture of the previous rules all put into one action.
Final thoughts- There is so much money out there to be had. Practice the abundace approach ( not scarcity). Look at all the real estate around you... schools, churches, businesses, houses, bridges, cemetaries, etc. etc. those were all built my people that either had money or were able to raise the money.
Its totally up to you! and how much you desire.
This really inspired me, thank you so much for sharing your story. I have been facing similar situations wondering how in the world I'm going to pull together the amount of money that I need and you just showed me the answer. Looking around me I realized that SOMEBODY is funding all of this stuff I see, so the question isn't "is there enough money out there?" The real question is "What do I need to become in order to gain control of the money that's out there?"
Senior Partner - Neo Acquistions
http://www.neoacquisitions.com
"Nothing is impossible, belief is all it takes."
Jackpot! You just answered the question most people never figure out. If you are able to develop into the mentality of a real estate investor, surely you'll become one. Same goes for any other venture. Good luck my friend, glad I could help!
Thanks for sharing your different approaches! I have held back on advertising for private money due to my line of work (my 9-5). What you said really resonated with me
I really didn't think to ask other professional for referrals that they may know who's already in the market. I had put private money on hold until I could figure a way to do it "under the radar". Thanks again!
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~
Attorneys can also be 'money managers' and or PML, so don't be afraid to ask
Mike
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
When you say find the money what money are you getting to purchase the property and rehab the properties? Are you getting private money lenders to give you loans or lines of credit? I am just starting out and want to start rehabing and flipping houses. Thanks
Thanks to you also Mike
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~
I use private money and hard money.. No lines of credit as I don't use banks.
The bottom line I take away from your post is: Jump in and swim! I will say, it is too bad that there isn't a service that brings "vetted" private lenders and "vetted" deals together, but that would be a pipe dream and I'm sure it wouldn't meet legal muster. So, I'll stick with your botton line and continue to splash about until something breaks my way. Thanks!
Mark,
Thank you for reaching out and sharing. Starting out, as you know, it is so overwhelming when you try and piece a big puzzle like this together.. This site is awesome and many thanks to you and everyone who reach out to help!
God Bless,
Holly
Holly
it is so nice when successful investors share their stories and strategies here for others to learn from! so inspiring to read how your mindset got you where you are today! just awesome!!!! great motivation for anyone who is starting out and trying to get money to fund their deals...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Dude, I suddenly have about 100 different ideas at this point.
This post fascinates me. I have to think.
And I'm worried about earnest money for a few REOs? Shoot. That's silly. Granted I came up with a plan to fix that problem... but still.
The money exists in vast quantities, it's just not where I am. SO... I will go to where the money is.
Thanks man.
Anyone want to be a financial partner in buying a church and turning it into condos?
Excellent! hard work. true dedication, you are definitely focused. you had a Goal, a mission, you saw it and you went for it! WOW!
You are a true inspiration!
don't ever be afraid to ask - key
Thank you
Vida
Universal Life
Great post, Mark! Thanks for sharing your "Just Do It!" approach!
Inspiring...
Thank you 'sweet little old lady!' LOL
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
• "To every thing there is a season, & a time to every purpose..." ~Ecclesiastes 3:1-8
• "Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy!" ~Dale Carnegie
• "Begin, be bold, and venture to be wise." ~Horace
• "Never, never, never give up." ~Winston Churchill
• "Whatever you do, or dream you can, begin it. Boldness has genius and power and magic in it." ~Johann Wolfgang von Goethe
Hello, My name is Tofu. I've just help a customer qualify for "first time homebuyer program". Im not sure how this will benefit me. Im working with an agent and he suggested me to give him my client's information-so he could work with her in getting a home. But, I've dont all the work. Because its "hard-money" and 0 down payment. How will I get anything from closing cost? Any advice or suggestions?
Thanks for your post! You made me feel more comfortable about hard money lenders. Money was always what was in the way of doing (& the what ifs like what if property doesn't sell or what if we get stuck with a high interest rate, etc) You just cut down the barriers. I feel like I just had a cup of up and am very excited to pursue more properties. Thanks again for your post!
Be very careful when approaching private money lenders, prior to having an established relationship with them.
The SEC regulation guidelines are very strict! Don't wanna get into any trouble...
PS. All HMLs are not created equally. Each lender has their individual criteria.
Caveat emptor.
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
• "To every thing there is a season, & a time to every purpose..." ~Ecclesiastes 3:1-8
• "Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy!" ~Dale Carnegie
• "Begin, be bold, and venture to be wise." ~Horace
• "Never, never, never give up." ~Winston Churchill
• "Whatever you do, or dream you can, begin it. Boldness has genius and power and magic in it." ~Johann Wolfgang von Goethe
I don't know that there's much for regulations on borrowing as long as your taxes are in order. However I do believe there to be some regulations when actually loaning the money... I could be wrong, please clarify if I am.
Why don't you use banks? Private money and hard money are so much more expensive. I use lines of credit on my quick flips.
Your point about using partners should be/is well noted. I have a $20,000 deal sitting on my desk...easy money, but I'm just starting out in an investing, and if I don't move fast, I'll miss it. Now, I would like to my funding and do the deal myself and keep all the profits like you, but I realize that may not be possible. So, I'm seeking out a partner that has money to invest in the house with me. If he decides to flip it, we will share in the profit, and if he decides to hold and rent it, I'll charge him a commission (can't charge fees as a real estate agent/licensee).
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
The SEC regulation guidelines are very strict! Don't wanna get into any trouble...
PS. All HMLs are not created equally. Each lender has their individual criteria.
Caveat emptor.
Both hard money lenders and private money providers have to be screened and sorted through just as do distressed sellers. Real estate gurus try to make all of this sound like it's a Sunday afternoon walk in the park, but real estate is seldom really easy, and investing is even harder unless your rich.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
Boy, that's some great stuff. Thanks for the inspiration and the a** kicking information. Keep up the good work!
Michael Daggett
Yes there are restrictions and regulations for each state. Eeah state will be diffrent so check with your state regulations and get an SEC laywer to help you with the regulations. You should be able to get the information you want from this sight. http://www.sec.gov/ . If you can not understand it then call them with questions they can answer them. And Yes be very careful if you are using private money. If you ask someone in another state for money you have to follow the rules of both states. Check carefuly and do you do dilligance on this as well as your properties.
" Not Having a goal is more feared than not reaching one"
Christa Niven
Hi Mark! I'm a new Investor and a member of Dean Graziosis' Family. I have a question for you. I received an unsolicited email from someone named Terry Brown in Red Lion, PA that offered to lend me private money. I don't trust the Giver. I've queried him to try to determine if he's legitimate and yesterday he sent me back an attachment of a LLC document that really doesn't look legit to me, but I've never seen a LLC document so I really am not the best judge of that.
How do YOU find legitimate hard money lenders? I understand that private money lenders are people we know such as Family, Friends, co-workers, attorneys, etc. Is there a site that YOU use for locating hard money lenders? Also, are these type of lenders 'mafioso-minded'... you know, the kind that break legs or exact their 'pound of flesh'? I thank you in advance for your reply.
Terri Lynette Noble
There are numerous websites with lists of hardmoney lenders, I've tried a majority of them and it's hard to even get through to someone let alone present them with a deal. A hard money lender usually isn't a big business or organization, they're usually investors themselves, often retired or not as aggressive on their own deals as they used to be and so they decide to loan money and make a great return. Some just specialize more in financing as opposed to finding and creating deals.
They're generally great people just like you and me... I know the term scares people. My wife thought the same thing when I first started this.
If you get to know your local community of investors I guarantee you'll get to know a couple hml's.
Hi, Terri!
The BEST place to find HMLs is by attending your local REIC meetings! It's a great place for referrals. In speaking with other investors there, who have utilized hard money for their personal real estate transactions, it's very likely they will share their first hand experience/successes with you. Often times, too, investor clubs will have vendor spotlights and/or a table where you will find HML marketing pieces. Some HMLs are principals, some broker HML services. Each HML varies in their requirement criteria. HMLs provide fast and furious cash @ high interest and for short term flips. These lenders are typically investors themselves, so they understand the flipping process.
PS. HMLs really control the terms of a deal, as opposed to utilizing PM, in which you have more control over the terms of a deal.
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
• "To every thing there is a season, & a time to every purpose..." ~Ecclesiastes 3:1-8
• "Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy!" ~Dale Carnegie
• "Begin, be bold, and venture to be wise." ~Horace
• "Never, never, never give up." ~Winston Churchill
• "Whatever you do, or dream you can, begin it. Boldness has genius and power and magic in it." ~Johann Wolfgang von Goethe
you know, the kind that break legs or exact their 'pound of flesh'? I thank you in advance for your reply.>>>>> TERRI I HAVE TO LAUGH OUT LOUD I THOUGHT THE SAME THING. I thought a black cadillac would show up at my house demanding the money or break both of my legs ROFLMAO !!!!!!!!!!!! terri i first of heard of hard money lenders a decade ago when i bought carleton sheets course. so i didnt have a real estate club to go to. i had no idea who these people were. i had no one to talk to. it's so funny now.
ALL THE BEST,
WALT