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fozzy
realtor/investor
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private lending
Friday, July 21 2006 07:48 PM
im just learning about private lending, can you use mulitiple people on 1 deal? if i have a 100,000 house and 5 people with 20,000 is this possible or not? if anyone is out there that could help me out a little bit on this subject i would appreciate it, i dont want to go spending thousand more on courses when i could get an easy explanation from someone. please e mail me at nbf1984@yahoo.com
thank you
nick
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E. Olson
Property Management
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Re:private lending
Saturday, July 22 2006 09:43 AM
Yes you can do that. That would be simmilar to a CASH deal when you write the offer, if you know you have the funds upfront. Many of these type of questions are delt with in 5 Way to finance your first house, and that does not cost $1000, $34.95 if you buy the booklet, and $27.95 for the QUICK pdf download. Read that and you will get TONS of info.
Before replying I looked in that book to see if that was covered, so I know its in there.
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Randy Hughes
Master Advisor-39 years of experience
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Re:private lending
Monday, July 24 2006 12:40 PM
Nick,
Using private funds to buy investment real estate is a great concept. The buyer gets readily available funds (without the hassle of bank regulations) and the private lender gets a much higher return on his money (then if he left it in the bank). However, this method of financing is not for the beginner (unless you are just borrowing money from your aunt Tilley). You need a track record to prove to the private lender that you are capable of protecting his money at all costs. You need to (at least initially) use an attorney to prepare all of the documents necessary to complete such a deal. Furthermore, a private lender is usually using the funds from his self directed retirement plan and there are compliance issues here as well. So, my advice is if you can use a close reative that might not be so picky do do your first deal or two, then you will have a "track record" to impress a private lender that you do not know.
Randy Hughes
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