"Tired of the stock market? Earn 9-12%
interest secured by real-estate"
When they contact you, prescreen the callers and take the ones you feel good about to lunch. Explain to them what you are looking for. Did you know they can legally lend you money from their IRA if
it is administered by a third party??
I met with a landlord to look at his one of his rental houses and he told me he had $300000 sitting in the bank and wanted to find a place to invest it. I told him I find houses each month that I would be able to get him a better return on his money than the bank. He said he would be interested in working with me.
I've never used private money. What would be my next steps to set up this up with him? I found a house one block from the UGA campus that I think would be a great investment. I posted this ? on the "sub to" forum earlier today. Do you have printed guidelines to show potential private investors? or do you just talk through your plan? Any help would be greatly appreciated!!!
Somoose:
I would recommend you meet with him and offer him 9-12% interest secured by
a first Trust Deed. Lets say for example he agrees to lend you money at 10%.
Then offer him 11% with no payments until closing. If your private guy also has an IRA he can tap into, then you can use a third party administrator such as "Equity Trust" and your private lender will not be taxed on this transaction to take out the money. The third party administrator is the key. Do a search on the internet for their number.
Once your private lender is in agreement.
This is how it works. You put the property
in escrow, have the escrow company or attorney, whoever you are using, draw up what is called the Note and Deed of Trust. This specifies all the terms of the loan etc..... You have your private guy
sign the paperwork prepared by the
escrow company or attorney and wire the money to escrow or bring in a check and you are done.
Usually the private lenders will want to see a property profile and comps on the property you are buying. Once you establish a repore with them, make your payments on time and close a couple deals, they will not even go look at the properties anymore. They will just wire the money over. The power of private money is unbelievable. If you know what you are doing, you can close in 2-3 days if you have to. That is one of the benefits, you can tell your seller that they can pick up their check on Friday if they accept your offer.
Good Luck,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 03/09/2004 ][ Edited by JeffreyAdam on Date 03/09/2004 ]
Thanks John and Jeff Adam! Here are the details of my offer mentioned above: I offered $155k on a &170k valued house with me bringing in new financing of $95k with owner carrrying $60k on a 5 year interest only balloon with $150/mo payments. With private money options, I might be better off offering $127k (75% LTV) and close in 2 weeks. What would you guys recommend? Lender would be secured in first position on both of these situations. Any thoughts?
check out the lenders tab
Investors 65% of ARV Hard Money 24 Months 15.000 15.718 5-6 700 15 620 0 65 No Doc 03.08.2004
I found hard money right off the bat in your state.
Put an ad in your local paper:
"Tired of the stock market? Earn 9-12%
interest secured by real-estate"
When they contact you, prescreen the callers and take the ones you feel good about to lunch. Explain to them what you are looking for. Did you know they can legally lend you money from their IRA if
it is administered by a third party??
Best Riches,
Jeffrey Adam
[addsig]
Jeffery Adam,
I met with a landlord to look at his one of his rental houses and he told me he had $300000 sitting in the bank and wanted to find a place to invest it. I told him I find houses each month that I would be able to get him a better return on his money than the bank. He said he would be interested in working with me.
I've never used private money. What would be my next steps to set up this up with him? I found a house one block from the UGA campus that I think would be a great investment. I posted this ? on the "sub to" forum earlier today. Do you have printed guidelines to show potential private investors? or do you just talk through your plan? Any help would be greatly appreciated!!!
Todd
Somoose:
I would recommend you meet with him and offer him 9-12% interest secured by
a first Trust Deed. Lets say for example he agrees to lend you money at 10%.
Then offer him 11% with no payments until closing. If your private guy also has an IRA he can tap into, then you can use a third party administrator such as "Equity Trust" and your private lender will not be taxed on this transaction to take out the money. The third party administrator is the key. Do a search on the internet for their number.
Once your private lender is in agreement.
This is how it works. You put the property
in escrow, have the escrow company or attorney, whoever you are using, draw up what is called the Note and Deed of Trust. This specifies all the terms of the loan etc..... You have your private guy
sign the paperwork prepared by the
escrow company or attorney and wire the money to escrow or bring in a check and you are done.
Usually the private lenders will want to see a property profile and comps on the
property you are buying. Once you establish a repore with them, make your payments on time and close a couple deals, they will not even go look at the properties anymore. They will just wire the money over. The power of private money is unbelievable. If you know what you are doing, you can close in 2-3 days if you have to. That is one of the benefits, you can tell your seller that they can pick up their check on Friday if they accept your offer.
Good Luck,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 03/09/2004 ][ Edited by JeffreyAdam on Date 03/09/2004 ]
Thanks John and Jeff Adam! Here are the details of my offer mentioned above: I offered $155k on a &170k valued house with me bringing in new financing of $95k with owner carrrying $60k on a 5 year interest only balloon with $150/mo payments. With private money options, I might be better off offering $127k (75% LTV) and close in 2 weeks. What would you guys recommend? Lender would be secured in first position on both of these situations. Any thoughts?
Todd