Finding Private loans for real estate investing are excellent opportunities to increase the amount of available money. Imagine if you had an unlimited supply of money for real estate investing. Would that change the number of investing real estate opportunities for you? Private loans from private lenders can create a source of real estate investing money you would not believe. Not having quick access to private lenders for some real estate investing money will cost you to loose real estate deals and money. Having private lenders available will give you the opportunity to do more deal, which means you will make more money. Here is a link for learning about financing real estate:
Private loans for real estate investing is money given to you from a private lender for real estate investing.
A private lender is a private investor willing to give you a private loan for real estate investing. The money is to fund your real estate deals.
The private investor will provide you with private loans for real estate investing, which replaces the conventional money lending institutions such as banks, credit unions, etc.
Having access to private lenders giving you private loans for real estate investing will make your real estate transactions move smoother and faster. Having a private lender waiting to hand you a check can be the difference between you getting or loosing a deal.
For example, an owner's house is going to auction within the next two weeks. One investor offers 100k and a second offers 75K. The problem is the 100K offer won't be available from the bank for three weeks, while the 75k will be available from a private lender within the next few days. The 100k offer won't do the owner any good because the money from the bank won't be available before the auction date. On the other hand, the 75k from the private lender will be available before the auction. So which investor is the owner going to pick?-Of course, the person who can bring the money the quickest.
Depending on how long an investor wants to tie up their cash, you could also use the cash to finance another investor or first time home buyer. This real estate investing money could be a short term or long term loan.
For example, suppose a potential buyer with money for a down payment with less than perfect credit answers your ad for a property you have under contract. You could use the cash from the private lender to finance the deal for a few years until the less than perfect potential buyer can refinance the property. At the time of the refinancing, you can give the private investor back the money due them from the private loan. Remember, your use of private lenders is only limited by the many creative ways you can think of.
Finding private lenders willing to give you a private loan for real estate investing can be done by advertising in the newspaper, on the Internet, posting signs on the street, or attending a meeting at one of the real estate investment clubs in your area.
Advertising in the newspaper can be very expensive, so make sure you find a newspaper you can afford to place an ad for about a month. The ad must be seen several times before the reader takes action. The Internet is very inexpensive, so should be a serious consideration for advertising.
Advertising can be free if you post on sites such as www.craiglist.com, www.yahoo.com, and others. Posting signs on the street can be very effective in obtaining private loans for real estate investing, but in some areas posting sign on the street is illegal. Therefore, before posting signs, check to make sure it's ok, otherwise you may be fined. Going to a real estate meeting is always a good way to get in touch with private lenders willing to give private loans for real estate investing. Private lenders may actually be at the meeting, or a real estate investor club member may be able to give you the name of a real estate investor who wants to do private loans for real estate investing because they have money.
Due to very low interest rates, there are many opportunities to help real estate investors make higher returns on their money. Providing private investors a higher interest rate will be easy to do because everyone else will be offering interest rates below yours.
If a potential private lender can earn a much higher interest rate on an investment compared to a very low rate, which would they choose? The private investor would choose the higher rate. Of course it's up to you to develope a relationship with the potential private lender to make them feel comfortable about investing with you.
A potential private lender or anyone that's interested in knowing, can go to the bank and ask a teller for the bank's current interest rates on each type of account. If you look around inside the bank, you may find a list of interest rates for eack account some where in the main lobby. You can also ask a stock broker about interest rates.
Potential private lenders can be anyone with potential real estate investing money sitting in a cd, savings or checking account, or any other investment vehicle yielding a low return on their money. Because interest rates are low everywhere, anyone wanting or interested in increasing their return on their money would be a serious prospect for becoming a private lender.
Private lenders are sometimes called angel investors. For more financing information view related articles below.
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