Strategies and clarification on funding real estate deals

I’m sitting quietly in my office thinking about a few Real Estate Deals I’m working on and was going through the different funding sources that are available to me for them, when I thought I’d write up a quick blog post and bring you up to speed on them and some late breaking important news.

I just got a land deal accepted and all the due diligence taken care of, including some environmental issues. This one is ready to fund and close and I’m excited about it because it’s a really good deal.

I’ve also got a few residential deals going that are about to close and also require funding.

The funding sources that are available in today’s market, as I see it are:
– Your own cash (and not many have the wherewithal)

– Banks (a great place to go if you want to be tortured and probed prior to them telling you they’re not lending, especially if you “need” the money)

– Transactional Funding (the industry topping funding we do in here)

– Hard Money (and your credit better be perfect and you’ll need to have 10% – 20% to put in the deal, then… you’ll learn why they call them “hard” money lenders)

– Taking over the seller’s mortgage (when there’s equity and they’ll let you do it)

– And last, but not least, private lenders (regular folks looking for a better return on their money in a safe environment)

Which type you’ll use will depend a lot on the nature of the deal. Let me break that down for you.

Your Cash… you should only use that when you are planning to resell or refi right away. You don’t want to tie up your liquidity long term. I hope this is obvious. This only applies if you HAVE cash in hand of course.

Banks… you should only go to the bank if you’re prepared to receive a financial-oscopy and, if you’re self employed, to be treated like criminal that is guilty until proven innocent. Then, if you can actually get them to lend you money, you’d use it on deals you plan to hold long term. To use banks for flip deals is torture on you and bothersome to them.

Transactional Funding… We have a funding program on STEROIDS as you probably know, and the cost is DIRT cheap. If you are not aware of the hundreds and hundreds of times we’ve helped our customers create BIG pay days by funding their deals, you should acquaint yourself with it. You don’t need any money or credit to qualify and the market is ripe for it. You can learn about it at www.FundAFlip.com. This type of funding is only for flip deals where you’re buying and reselling immediately, without doing repairs, and selling to a cash paying investor, rehabber or landlord. Wholesaling, as it’s commonly referred to.

Hard Money… you should only use this when you are rehabbing. It’s very expensive, requires (in today’s market) you to have decent, if not great, credit and (in almost all cases) you to put quite a bit of your own money in the deal. So, if you’re lacking credit or cash, this really isn’t an option – again, in today’s market. There was a time where your credit didn’t matter and you could go in with no money of your own. Those days are long gone.

Taking over a sellers mortgage… also known as “subject to”. This works when you want to either hold the property or flip it to an end user buyer. This only works when the seller has equity they’re wiling to walk away from and when they’re comfortable with you taking over (NOT assuming) their mortgage.

Private Lenders… ahhh Private Lenders. I love private lenders. I’m sitting in an office building right now funded by a private lender. I have rental houses in FL that were funded by privates lenders. I’ve done rehabs funded by private lenders, and back when I didn’t have the cash my self, I also used private lenders for short term wholesale flip deals. I’ve used private lenders for just about every type of deal there is – both residential and commercial. They’re versatile, negotiable, reasonable, usually don’t care about your credit, and if the deal is right, will fund 100% – or in some cases more than 100% of the purchase price. They’re awesome, and I love them. In fact, if it weren’t for private lenders, I know I would not be where I am today.

The trick is finding them. I can’t count how many times, over the years I’ve been asked, “Hey… who are your private lenders? Can you give me their contact info?”. I’ve always kind of laughed at that question because it seems funny to me that someone would even ask. It’s kind of like someone asking if they could use your tooth brush. YUK! But seriously. Private Lenders are private individuals, yes, but… they’re also PRIVATE! Mine are mine, yours will be yours…. go get your own!

The hard part is… Who do you ask, what do you say, what terms are they looking for. In the past, I’ve just sort of winged it, and really let the deal in hand do the “talking” for me. When it’s a good deal, believe me, it speaks loudly.

Now you know that I’ve been at this business for just shy of 20 years, and I’ve done and seen (just about) it all. So that makes it easy for me to find and work with private lenders. Heck they find me! But this isn’t about me. It’s about YOU!

How will you find and work with private lenders? I’ve been asking myself that question, over and over, for years. How can I help YOU find the private lenders you need to fund your deals?

Well I finally figured it out. It took just over 2 years of pushing, pulling, negotiating, combining sources, massive technology and BAM!!, I’ve got the solution. It’s called the “Private Lender Data Feed” and it’s about to ROCK YOUR WORLD!

The PLDF (for short) is where you have access to known private lenders, who have just made a private loan on Real Estate, all over the USA, including your back yard, and anywhere else you do, or want to do, business.

With the Private Lender Data Feed, you’ll never wonder where the private lenders are, and you’ll never need to convince them they need to be a private lender… they ALREADY ARE!

Click here right now to watch a short video on the program.

BTW, that data costs me a fortune to acquire, from multiple sources and we add 6,000 to 8,000 new private lenders each month. They are folks who made a private loan on real estate during the previous month. So, each month the system is updated with the most recent, new and repeat, private lenders.

Click here now to learn more about this powerful system!

Let me know what you think about this. Please leave your comments below. I want to hear from you so please feel free to chime in.

Cam

Cameron Dunlap's Real Estate Profit Letter!

It will help you make more money and is packed with tips, techniques, success stories and inspiration. Sign up now! There's no obligation, and you can quit anytime.

We respect your privacy so please rest assured that Real Estate Wealth Network does not sell, rent, or give away customer information for ANY reason (including e-mail addresses) ever!

27 thoughts on “Strategies and clarification on funding real estate deals

Do you have a template or sample letter for contacting these Private Lenders?

Thanks,
Aaron

There are letter templates that are part of the mail manager system that is part of the PLDF. You’re also provided with SEC compliance information that will help you stay within the rules.

Sounds very interesting. Would like to know more.

private lenders are something we all need.most of us do not know where to even start looking for them, I love the idea!!
thanks Cam

Do you have private lenders for income property in Central America?
Thanks

The private lender info we’re able to provide are in the USA only. That’s not to say that they wouldn’t be willing to consider a Central America deal.

You’ll never know till you ask.

Cam

Hello…after I read thur this n would love to start…..I still have problem with due diligence list…every time I see opporunity with fourplex apt building n know if I understand how to do due diligence check list n see if cashflow is greater then morgage/net worth then I would learn how to collect finder fee at first before I’m able to buy property on my own…. will one of them show me the rope on hand? Thank u for reading this…..Sandie

This sounds like a fantastic Idea Cam. I will try it out.

Cam, Private Lenders are where it is at…they are out of the box thinkers. A deal is a deal in order to make income.
I am very interested in making it happen. Bring it on please…..
Much Thanks! G

This looks like a great resource. I have a deal where I am considering using private lending and I just sent out 27 letters today to start building relationships. A great addition to the PLDF would be materials to help us organize our presentation to the private lenders who agree to meet with us. Thanks for another great entrepreneurial creation, Cam!

Excellent suggestion Richard. I’ve just put it on the whiteboard.

Cam

I am excited about your idea shared. Thanks for the information. I look forward to doing deals with repeated success.

Hi Cam thank you for your PLDF program. I just have one question; if these private lenders are known for and have made loan to real estate investors for their real estate deals recently, do we still need to wait 30 days, meet with them, and have a phone conversation, ect…?

I’m not an SEC expert, but I think so. My interpretation is that it’s more about your relationship than their previous or current activity.

Cam

Considering the other sources of funding available, private lenders appear to be quite the viable
alternative. In Cam’s own words they are versatile, negotiable and reasonable.

What contracts do I need to perform subject to and where and how do I get them?

Cam,
The IFLIP program RUNS $49/MONTH. YES? INORDER TO DO DEALS WITH YOUR FUNDS.

HAVE A GREAT DAY.

They are different and separate Hal. Funding and POF does not come with iFlip. But, if you get on board with my funding program, I’ll let you test drive iFlip for 3 months before any monthly charges kick in.

Cam

Cam , Thanks for all the positive posted. I never thought that I would be here but I am and loving it. Your words of encouragement about real estate an keeping us posted on real estate news is really inspiring, keeping us updated of what is really working is great. Although I have not done any deals as yet am working very hard at it an looking forward to posting my success story soon.Thanks

Hello Cam,
I totally agree that private lenders are great funding sources. I would like to stick with your funding program for now flipping deals and grow my business. I will definitely consider those private funding at some point in the near future.
Best regards,
Peter

I like private lenders but it is hard to find one , call me stupid but it seems confusing to me i guess i need to spend more time on it, i would like to use your funding source but i didnt have the money at the time you offered it , if i could get the funding i could close on some deals right now but thanks for the desire to do it and do it right you r the best cam

I have a number of Lenders in my area that covers Conroe TX and Nationwide. But I have only talked with 3 or 4 to date because I’ve not had until now any projects to work on. As soon a I get some ready through your iFlip system I will start using them and get back with you on how it worked out for me.

Hi Cam. Thank You So Much For This, we are working on our first deal, we are excited and will keep you posted, Thank You.

Hi Cam I found this information very useful how every, I wonder what the abbreviations for BTW, SEC, POF stand for, I like your short videos you shared. I like the fact that you point out that property equity speaks loud to any type of investors. The EQUITY is my only focus on any real estate prospective acquisitions. Thanks again for your valuable insights.

Sorry about the Acronyms! Life is full of them these days and they’re different everywhere you go. I need to remind myself more often that not everyone understands the ones I use daily as well as I do.

BTW, is “by the way”.
SEC, I presume is the Securities and Exchange Commission
POF, is “proof of funds”

Leave a Reply

Your email address will not be published.