How Hard Money Can Make You Killer Profit

Hard Money

Hard Money as a Profit Maker

Using Hard Money as a Profit Maker is fairly easy. It’s running the numbers so it makes sense that isn’t.

If you haven’t gotten a mentor to help you or don’t have calculators, (which by now you should have searched out online; there is a ton of them) you’re shooting blind and your profits will get eaten up quickly.

And it’s not just about running numbers on a calculator either. It’s about knowing your risk and how much you are going to make on the back end.

What’s a good “rule of thumb” for Hard Money

A good rule of thumb as far as profit margins should be about a net of 30% or a cap rate that gives you a good spread on your investment. (GREEK ANYONE?)

Let me explain:

30% net profit is what you have left after paying off your finance and equity partners and counting all costs involved in the transaction of securing the property. The rest of the costs (Title, escrow, commissions if any, other miscellaneous costs) would probably bring you down to about 20% or so. This is really more for rehabbers.

Hard Money

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On the buy & Hold side, many look only at the return of a deal rather than the risk. Beware! Just because it says there’s a cap rate of 12%, doesn’t mean that’s what you’ll end up with in cash flow. Using Hard Money is a great way to leverage risk off of you, however it can hurt you as well if you’re not careful on figuring out risk in an investment. (if you’re not sure how to figure on that, we’d be happy to discuss your project and see whether or not you are looking at a viable deal.

Your biggest challenge is to be sure you have something that has a great return after paying expenses, not just great returns.

Know your Hard Money Lender

I see a lot of newbies calling around and asking the same questions as if it’s on the lender that they have to prove their worth working with. (I always get a chuckle out of that) Hard Money Lenders are there to serve you, sure. Remember too though, that they are more like a partner than just your servant. You’re going to have to qualify with them too. And if you don’t know how to figure out the above, it won’t matter how good a lender they are, you’re not getting that Hard Money anytime soon.

Invest in education. It’s a good thing, however, don’t just take that “guru’s” advice and goo out and qualify the lenders, qualify your deals.

When you have a good deal with low risk and great return, you’ll have money knockin on your door. Hard Money that is.

Apply for your Hard Money Loan by Clicking Here

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What Investing did you do President’s Day?

Investing

Investing is a full time gig

Happy President’s day! It should be a day of relaxing with family reflecting on the leaders and leadership we’ve had over the past couple of centuries. It should also be a time to keep eyes open for active investors that are looking for opportunities to create income. If not, it’s lost momentum, and lost opportunities. Believe me, if you’re not looking, your competition is.

I have Investing Competitors?

Yeeeees, you do. THey are out there, hustling, bustling, searching, scouring competitors.

In fact, they’re everywhere. Investing in every opportunity they can secure. Why not you?

You chose to be in a business that is competitive. Maybe not as much as let’s say manufacturing toothpaste, but not far behind either!

Surely you know a few of them. If you’ve played it right, you’ve networked with them as their specialties are most likely niched a bit different. None the less they are investing. Just. Like. You.

But It’s a Holiday…Investing on a Holiday?

We aren’t suggesting that you give up your holiday to just go out and continue your investing activities. In fact, we would rather you take a day off. However, that doesn’t mean your eyes go shut and you go brain dead.

Keeping your eyes open and scanning for opportunities is paramount. You can always do research when you get back home.

Investing is still the bottom Line

Your business depends on finding new deals. Not just online where a good portion of them can be found, but everywhere you go. To some this will be a no brainer of “really? Why would you bother talking about this?”

Others will take it as a kewl reminder and probably have their brains engaged to be looking. We do it all the time. Anytime we hit the road we’re looking for new opportunities to be investing. they are in fact everywhere. Don’t miss it.

Once you’ve found an opportunity that works for your niche, we can help with the financing. It’s a simple application and we do work to close everything quickly.

Click on the graphic below to get started!

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Investing can be fun anytime.

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Latest Trends in Private Money Lending

Private Money Lending – A better way to earn income

I’ve been listening to a lot of nay-sayers about the Real Estate market as of late.

Example:

Someone: “So, what do you do exactly?”

Me: I help investors realize a greater return on their investments through investment opportunities secured by real estate.

Someone: “Ooooh…**Makes the smiling nodding sign to his buddy** The Bubble…”

Me: “??” I’m sorry I’m not sure I understand what you’re referring to?

Someone: “Oh you’re in that place where when the bubble pops again people will lose money!”

Me: “You’re right, someone WILL lose money…just not our investors.”

Someone: “How can you say that? Banks are inflating prices again and it’s all coming back around for another fall!”

Me: “Yep, but that has literally little to no bearing on what our investors invest in.”

Someone: “??”

Private Money Lending as a safe investment

After the conversation with this person, it was clear they had a bad experience in real estate investing and had no clue as to what they were doing, much less understand what it meant to be a private investor versus an active investor. They haven’t been in Private Money Lending before. Even after explaining how it is hardly affected by the real estate market, they still showed invincible ignorance towards how we can avoid the thrills and spill of Private Money Lending.

For those that really want to be involved in something like this they have to let go of any past experiences in Active investing to even begin to understand how this dynamic changes everything!

Private Money Lending Broken Down

Private Money Lending depends mostly on the current value of a home and there are more than enough homes with good equity in them that you can literally find new opportunities daily that make sense.

If you work with a Private Money Lending Broker (like us) you can sit back and just wait for the opportunities to come to you. No waiting to get paid either; just a solid interest income payment each month until your principle is paid off.

Many have wondered if that is affected by the real estate market shifting so often…NOPE.

If you are in Private money Lending, you have the opportunity to earn income no matter where or what status the market is in. You do need to know what’s going on in that market to understand what kind of and if there are any good investments to be made. This should be up to your broker that is underwriting opportunities for you.

The Bottom line for this type of investing is, you dod need to still be savvy with the market you wish to invest in. If you have a good broker, you can count on, then you have numerous opportunities that can do you well in Private Money Lending.

If you are interested in learning more about how to become a Private Money Lender, you can Click here and get a free report on how you can beat the bank by becoming one!

Or you can give us your investor profile by clicking the pic below:

Private Money Lending

 

 

 

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Top 10 Reasons to Become a Private Lender

logo-private-lenderBecoming a Private Lender could save your financial future

Everyone has heard of “being the bank”. Everyone thinks you can only do that with Insurance policies or hitting it big in the stock market. Becoming a Private Lender may be one of the only true ways left to make this a reality.

Peer to peer lending has been around FOREVER. Most of us don’t know it’s shape or form as we’ve only seen it lending $20 to a friend or relative. Others have lent bigger dollars only to never see it come back. (Leaves a bad taste in the mouth no?)

In short a return on investment has become somewhat illusive. That’s where becoming a private lender could be a game changer for you.

Being a Private Lender in a nutshell

So what is a private lender?

It’s also called peer to peer lending and its been around since the days of horse trading. (Yes this is said tongue in cheek but it’s to emphasize that it’s been around a long time)

If you are an active investor, you swing a hammer and want to create a net profit after selling the home you are working on or creating cash flow by keeping a property for rent.

As a Private Lender, you don’t have the issue of finding, fixing, and selling or setting up rental. You simply lend capital to an active investor and collect the interest payments. Yes it is interest income and you will have to pay taxes on it if it comes directly to you.

As the Private Lender, you are paid first, not after the property is sold. You gain interest on the principle amount and get your capital back at the end of a relatively short term. (usually 12 months or so)

Benefits of being a Private Lender

One of the advantages of being a Private Lender is the fact that you can take the interest income and place it into a financial security instrument. (wooh big words) Basically like a self Directed IRA, or Defined Benefit Plan, Pension etc. This ensures minimal liability with Uncle Sam.

An Active Investor doesn’t necessarily have that luxury. If income goes into their LLC, they still have to reduce the liability by spending pre tax dollars. Then passing through the remaining income they still get taxed.

For a Private Lender, you can defer the tax liability by placing the interest income into the Self Directed IRA, or other instrument. This makes it easier for you to build your retirement or income for your family trust etc.

It’s how many have made sure their incomes are protected into the future. Not just holding a portfolio of homes for cash flow, but lending and gaining or increasing their Return on Investment.

Check With your custodian or if you need one call us and we can refer a couple to check out. (We gain no referral for suggesting any of them)

Top 10 reasons

ok so here they are in no particular order:

1. Deal with hungry Active Investors

2. Default means you’re getting a property

3. Interest income that can be placed in just about any financial instrument that allows for self directed investing

4. No marketing to find properties

5. No Hammer swinging (yes I’m that lazy too)

6. Easy to earn greater returns on investment

7. Investment is secured by real estate (as opposed to market fluctuation and unpredictability)

8. Shorter term for faster returns

9. No realtors, contractors, or people to deal with other than the borrower

10. First one Paid. First one out.

 

Consider becoming a private lender today. Call us at 702-856-4388 and ask for Dan or Mike. We’ll be happy to discuss what’s possible for you.

Private Lender

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Earn as much as 10% on your money as a Private Money Lender

If you haven’t thought about becoming a Private Money Lender

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Private Money Lender…good title for you?

You’ve worked hard for what you have. You know you deserve better with the banks no longer paying anything more than even 1% on any financial products they offer.  So what do you do?

There are a ton of program out there offering you to invest with them. From Stock Market to Real Estate the options are pretty varied. The big question is, “Where can I get the best returns on my money?” Perhaps one avenue you should consider is becoming a Private Money Lender.

The big deal about this is the ability to become someone’s helping hand in deals they themselves either need help doing, or know how to do but just need that extra push to get their project completed. By becoming the bank for them you eliminate a LOT of headache for the Active Investor. You negotiate the terms that you are willing to settle with and both you as the Private Money Lender, and they, the active investor, both come out on top.

Free Report on how to become a Private Money Lender

There is a free report you can grab here to see how you can actually beat the banks pretty badly by becoming a Private Money Lender. Think about it, your financial adviser couldn’t guarantee that rate of return. It’s just not possible. As a Private Money Lender, IT IS! You are able to set terms and SECURE the Return via a deed of trust or mortgage and note. (Among other legal instruments)

Click Here to get that FREE report.

Becoming a Private Money Lender is not as simple as you think

Not everyone knows how to become a Private Money Lender where your money is protected correctly. We can help you through that whole process. Through our Network, we can help you learn how to become a private money lender by “vetting” any deals available and then presenting them as an opportunity for you to write a check and gain a security instrument to protect your money then you start collecting the checks.

Becoming a Private Money Lender, you are giving the Active Investor a fighting chance to get more deals done while securing a greater return on your cash that is probably sitting somewhere that you are just not getting any really fair return.

If you are interested in finding out more on how you can become a Private Money Lender and get a greater return on your money feel free to call us at 866-611-0186 ext 201 and we would be happy to talk with you about how you can join a network on savvy individuals that are already realizing a better ROI on their investments.

Don’t miss out on the opportunity to become a help to the economy by becoming a Private Money Lender today!

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Cherry Pickers Are Everywhere

Cherry Pickers abound in the Hard Money Realm

Applied for a Hard Money Loan

Last month a borrower challenged us to match another lender that was offering 100% Purchase price and repair. Funny from the Hard Money lenders we knew, and we know a lot of them, this was a seemingly easy challenge. We blessed them and sent them on their way. Funny thing, they called back later saying for some reason the deal fell through.

After some questions about their opportunity they were working on, it was clear they had been “sucked in” to the 100% LTV marketing ploy. It’s great to bring borrowers to apply for a Hard Money Loan. Gets the phone ringing for sure. Gets a lot of applications onto the table. Then it begins.

The Hard Money Lender starts looking through the deals and finding the best ones and sending out approvals for them and apologies for the others that they can’t help them at this time. It can be REALLY frustrating when applying for a Hard Money Loan and not getting it and not ever really knowing why.

So what is the deal with this Hard Money Loan?

Ok, so you applied, you got the response that you didn’t want from the Hard Money Lender, why?

When they are good at marketing, they end up with first pick of all the borrowers out there by building their hopes and getting everyone to apply with them. Great problem to have for the Hard Money Lender, no so great when they start looking for the best deals; otherwise known as “cherry picking”.

When you have a bunch of great looking loans and even more not so great looking loans, which would you pick if it was your capital at risk? Of course it gets to that point where some Hard Money Lenders also look at the “loan to own” angle. That means they’ll take the property if the loan goes into default.

As a borrower wouldn’t you like to know that your deal is shored up properly so you don’t have to worry about losing your deal? Some Hard Money Lenders won’t tell you what’s amiss in your project when you apply. This does nothing for you the borrower as you are trying to make this deal work!

What can I do to make sure I don’t get Cherry Picked then?

First thing you need to do is vett your opportunity and be realistic about whether or not YOU would actually risk your own capital on the deal you’re working on. If you can be sure there’s enough ACTUAL Equity in the opportunity, then you have set yourself up well already. If the opportunity is questionable(not quite enough equity, not enough to put your skin in the game, not in an area that families will want to move into, etc) Then look for another deal; there are more than enough to find the right one.

Next is to vett your Hard Money Lender. Be realistic about the fact that if you’re looking for 100% LTV unless it’s a truly amazing deal, you’re probably not going to be the cherry that gets picked. Shore up your deal so that you can become the cherry. If you’re not sure how to do this, we can help.  We have a quick Loan application online that you can fill out to see where you would stand on getting a Hard Money Loan.

How do you help as a Hard Money Lender?

We can help vett your deal and then get you the funding needed to make it go!

By filling out this simple application, you can have one of our representatives talking with you about your current proposal or opportunity.

Once we’ve received your submission we go to work checking on valuations and location, etc. When we have the information we need to make a decision we come back and tell you what your opportunity actually looks like to an investor.

If it looks good to you, then we move forward to facilitating that Hard Money Loan. No cherry picking, just honest business.

If you want to stay out of the Cherry Picking race, apply by clicking the button below.

Hard Money

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Hard money Loans are our business, we would like the opportunity to earn your business.

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BEWARE the 100% Loan to Value Lenders!

100% Loan to Value Private Money Lenders…

Are these Private Money Lenders real?

We have had a bunch of “newbie investors” tell us that they have lenders that are lending 100% Purchase Price and Repair and are asking why we don’t lend our Hard Money in that same way.

Ok, so this needs to be clarified. There are a couple reasons for this. Mind you every time we see someone saying they are lending ARV or are charging only 1 point or even NO POINTS, as a Private Money Lender we either subscribe to their newsletter or call them direct to see what their deal is. Interesting to find out what is really happening with those deals. The Borrower ends up with a lower Net Profit using that Hard Money or Private Money Lender because they either have a desire to share in the profit, or their qualifications are a lot higher than they advertise. (meaning you will have a hard time getting that loan anyway)

So, here’s a quick tip on what to be looking for when you hear of the 100% Hard Money or Private Money Lenders.

Some things to consider before “jumping on” with a Hard Money Lender or Private Money Lender:

Do they lend anything more than 70% Purchase and repair?

Do they Lend 100% ARV and rehab costs?

Does this Private Money Lender say “Easy Qualifying?”

Are they looking to “Partner up” with anyone offering 100% financing?

If you find any lenders like this realize; They are probably going to want to share in the equity of the deal. Meaning: your net profit is less and you almost become a “bird dog” rather than an investor. Even if you do all the work, you are still bringing them the deals and you are not building wealth. You’re in another job.

If you wish to work with a Private Money Lender that will work with you to get your project done and leave you the Net Profit of your projects we would love to work with youPrivate Money Loan Application

Apply now for Private Money Loan

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