Recently, we received an e-mail from a student asking Hard Money Real Estate Loan Questions and looking for Answers.
Here’s the actual e-mail with hard money loan questions we recently received from a student. I thought it would be helpful to many of our readers to post my answer here…
From: Tamara XXXX[mailto:XXXXXX@yahoo.com]
Sent: Friday, June 27, 2008 3:48 PM
To: Bob Leonetti
Subject: Question for you
Bob, we have a couple of houses that we have negotiated short sales for and we need short term hard money. These are properties located close to us in Colorado and renters are already in the home. Is this something you would be interested in or do you have any other ideas for us? Thank you. Bruce and Tami
…and here’s how Bob Leonetti answered the question about “other ideas…”
Hi Tamara!
Send me the numbers (amount needed, house value, what you’re paying for it, etc.)…I MAAAAAY have an interested party! On the other hand, there are a lot of ways to get private money locally:
1. Go to your local Real Estate Investment Clubs and ask around – most hard money lenders will be soliciting their wares saying, “Use my money!!” And most likely, they’ll be the ones sponsoring the meeting (check near the punch and cookies in the back of the room)!
2. You should also be networking w/ other investors in your area to see who they use – that’s actually the best way to find local investors.
3. Check the Internet and the Yellow Pages for lenders.
4. Check the Scotsman Guide for a list of hard-money lenders nationwide. They’ll be a bit more expensive that local private lenders.
5. Advertise on Craigslist that you have a mortgage for sale ($120K, 12% mortgage secured by 1st lien on local real estate). When you get calls, tell them that you sold that mortgage but…you have another. The “other” one is going to be the one you create to buy the property.
BTW – I’m bringing in a private-lender to the workshop in Las Vegas May 7 – 10, 2009. She’ll share with you her techniques on how she acquires money to loan to others. The best part is…she isn’t selling anything!!! <grin>
See you in a couple of weeks – let me know if you have any questions!
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