Private Money Defined: Going by many different forms of private money, private lender, private partner, and more, private money is just that a funding source for real estate investment (or other investment) from a private individual that the borrower knows personally and that knows, likes and trusts the borrower and their investment enough to put their own money or credit into the transaction. The Advantage of Going Private: Private Funding is so much easier than working with a traditional lender in that there is not typically a credit check or an appraisal process on the home so the transaction can close that much faster. And unlike working with a Hard Money Lender who wants points plus interest, a private money lender is typically cheaper, although they could cost more, depending on what the private parties negotiate. Some want interest, some want a flat fee, some want a part of the profits.
Why Would Someone Lend to You: Think about it, the average person has two places to park their money, in the bank earning virtually nothing or in the stock market that can be very volatile. If a real estate investor comes along that has a proven track record of real estate investment and can offer them a decent return that far beats the bank, but is less risky than the stock market.
What If I Don't Have a Track Record: Most private money lenders and partners want to work with an investor who has completed a few deals, although some will lend to a brand new investor if the deal is sound. If you are brand new to real estate investing and have no track record of your own and have no experience at all in the industry, the next best place to find funding other than your own bank account is to work with the Institutional lenders at your local REIA group. Here at MAREI, we have numerous lenders who can help.At the Tuesday, August 14th MAREI Meeting, we are inviting in a few of our own local experts such as
- Investor Eric Granneman who has worked both sides of the private loan.
- Investor, Dale Griffen, who has had to take back a few properties as a private lender
- Investor Kim Tucker who has borrowed and lent privately.
- Attorney Rick Davis who has been a part of numerous private transactions, joining us on how to keep everything legal.
- And a few more members to share their experiences.
Join us Tuesday Night to learn more about:
- How the average member who has borrowed privately found their lender.
- What to look for in a good private lender and when you might want pass.
- What the average member who lends privately looks for in a borrower.
- What paperwork you must have and what additional paperwork might you want.
- Why you always want to fund a transaction through a title company.
- What instruction to provide your escrow closer as the lender.
- Why you always want to record your loan and get original copies.
- Why it's not the end of the world if the deal goes south, yes sometimes a private lender has to foreclose.
Special Bonus: For everyone who pre-registers and attends the August meeting, we will be providing a digital copy of the Book How to Get All The Money You Need to Buy Property from Alan Cowgill.
What to Expect: Doors open at 6 pm. Be sure to check in and get your name tag, find a great seat and save it and then get out there and meet people. Be sure to visit with all the many vendors in the expo hall to find out what services they offer and how they can help you in your business now and into the future. Some of your best resources as an investor is the vendors at MAREI who know how to structure a deal, who to use for a variety of aspects of the transaction and can help you along the way, with not only their services but their expert knowledge. Be sure to bring business cards and deal flyers for the deal table and bring your questions as we have many experts there every month throughout the room who are more than willing to answer a question.
New features for the monthly meeting that we are working to find a few volunteers to supervise.
- Genius Bar: Look for a grouping of tall tables at the end of the check-in table. We are asking for a few volunteers to take on real estate investor questions through out the networking portion of the meeting. (From 6pm to 7pm)
- Speed Networking: We are looking for a couple of volunteers to supervise 2-speed rounds of speed networking in the front corner to the right of the stage so that our new members can meet and get to know each other. (6:10 and 6:30)
- New Member Orientation: Look for the sign at the far back corner of the meeting room for New Member Orientation (6:30 to 6:45)
This meeting is Free for all Investor & Business Members that Pre-Register Below. First Time Guests can also pre-register for their first meeting at no costs. Our Internet Members and all other non-members can pre-register below for $15 or pay $25 at the door. We encourage everyone to pre-register below.
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