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This week I want to give you some of the basics to private lending, focusing on one-on-one relationships, so we can begin to build your foundation of fund raising techniques which will apply for each method described above. Remember, it only takes one investor to set you free.

What is Private Lending?
Private lending refers to a transaction whereby the party that invests the money is an individual or company and is not your typical institutional lender, such as a bank or insurance company. It is basically a loan secured by the real estate. Just like a car loan or a home mortgage only private.
Like a bank, private lenders are prepared to invest with you, after you have found a property, negotiated the price and have put the property under contract. Identical to banks, a private lender must agree to the terms of the money which include loan amount, term, interest and payment terms. Once agreed upon, they will place the investment funds in an escrow account in preparation for the closing. At the closing, the private lender will receive a mortgage security and a document that outlines the terms of the loan, which is secured by the real estate.
What are the advantages of using a Private Lender?
1) Private lenders can move more quickly – most private loans can close much quicker than a bank or institutional investor.
2) Private lenders have no hidden fees – private loans are typically clear cut fixed interest rate, no application fees or points.
3) Private lenders like fixed rate loans – when other investment vehicles are challenged such as the stock market, private investors enjoy the fixed income.
4) Private lenders can fund 100% of purchase price – no banks are going to lend you 100% in today’s market. Loan-to-value is as high as 50%.
5) Private lenders will not run credit checks – there is no board approval, credit scores or nerve racking nights, awaiting the response.
6) Private lenders are much more flexible – once you have established a relationship, private investors are flexible to meet your needs because they see the profit potential.
7) Private lenders don’t require massive paperwork – they are only interested in the recorded mortgage and payments on time.
Bottom line, getting a private investor saves you time and effort, considering the stressful wait one goes through when borrowing from the bank.

Starting out in real estate isn’t only having the eye to spot real estate properties that are worthy investments, you must have extra money to finance the purchase. You need fund raising techniques to be a success in real estate.
For starters, ask yourself these questions:
1) Are you willing to share the wealth?

2) Would you like another source of income?

3) How would you invest unlimited funds from Private Lenders?
If you answered YES to any of the three (3) questions, then now is the time to think about your ability to become a master fund raiser in real estate. Imagine if you could provide high yield returns to investors, throughout the country? What would you do if you were the go to person, for a secured real estate investment? This is why I want to teach you, how I’ve succeeded raising unlimited funds.
Once you have established your deal criteria, it will dictate the range of percentage return; you can market to your investors. Your ability to offer opportunities to investors, by giving them a share of the wealth, will bring you many prosperous real estate investments. It will also enable you to earn fees for managing the funds and the business.
Typical fees to raise money are 2-5%, 2-3%, to manage business and 5-10% additional fees, to manage the investment, development and/or construction. The fees add up quickly and this does not include your net profits. Managing money can be a very lucrative business when you break it down in this fashion.

Types of Private Lending
There are a few private lending methods we’ll discuss in our funding lessons, which will include:
1. One-on-One Private Lending
2. Group Investments in LLC
3. Private Placement Memorandums
Next week, I want to give you some of the basics to private lending, focusing on one-on-one relationships, so we can begin to build your foundation of fund raising techniques, which will apply for each method described above. Remember, it only takes one investor to set you free.

Let me share  7 Steps to help you with your new beginning. There are many different ways in which you can become your own personal phoenix, rising from the ashes of past failures and defeats creating a new life out of the old.

Applying these practices now, will not only create this new beginning, but also serve as a blueprint for a set of destiny changing habits, that can help you develop and realize the life you dream, desire and deserve.

Charles Reade once said, “Sow an act and you reap a habit. Sow a Habit and you reap a character. Sow a character and you reap a destiny.

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Investors typically choose real estate for a number of reasons: cash flow, appreciation, tax benefits, and leverage. A real estate investor holds property for personal or commercial investment reasons. This differs from real estate dealer who holds property primarily for resale to potential clients. An active investor typically buys a property and then makes repairs or improvements with the intention of selling the property for a profit. A passive investor usually hires an investing firm to find and manage potential profitable opportunities, and is not actively involved in any improvements or negotiations related to the property. Unlike a professional realtor who has to pass a series of exams and be licensed by local and state agencies, an investor simply needs capital and confidence.

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With the steady appreciation of property values, the tax benefits, and the possibility of huge profit margins thousands of individuals are searching for ways to enter the investment business. While investing requires no prior experience or special certification, it is advisable to learn the basics before you begin your new career. There are several ways to gain this knowledge, including books, online guides, and group presentations. However, the easiest and most thorough method to learn the ins and outs is to attend real estate investing classes. These classes can be found at a local technical or community college, through a specially developed series, or by accessing online programs. All choices offer the same basic knowledge. Therefore, it is a simple matter of deciding which option suits your needs and schedule.

Technical colleges are great places to find real estate investing classes. They cater to non-traditional students (such as retirees, returning students, and those looking to gain further training) and offer diverse classes and flexible class schedules. With the popularity of real estate investing increasing, many colleges are beginning to offer training classes. These are led by experienced investors or former banking employees, and are usually held in the evening. This means that you can attend these classes without affecting your current employment schedule. To find out whether your local college provides these opportunities, simply contact their admissions office. They will be able to provide you with a class schedule and current tuition rates. Typical tuition rates are traditionally paid on a per credit hour basis and can vary for fifty to one hundred dollars.

If you do not have access to a community college or the college does not provide real estate investing classes, then you may turn to an online program. With the advent of the internet and the increasing capabilities of personal computers, web sites abound that offer investment training. This method is even more flexible than attending classes at a college. Therefore, you can access the website twenty-four hours a day, seven days a week. While there is usually an upfront cost associated with these online databases, this method should be less expensive than attending live classes. Be cautious of sites that boast of easy money or earning guarantees as these may simply be schemes to gather your personal information and money.

If you live in a larger city or metropolitan area, you may be able to find an individual offering group lectures. These group lectures are usually held in large auditoriums and can have thousands of people attending. They are usually led by an experienced investor who is trying to illustrate how easy it is make money through real estate transactions. While impersonal and volume oriented, these lectures can be a great substitution for institutional classes. They are usually open and free to the public. However, lecturers often offer additional materials and video recordings of the current and previous lectures for a small fee.

With the increase in popularity of real estate investing, a number of options have become available to learn the ins and outs. From community colleges to online programs, classes abound and are easy to find.

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