What to Know About OPM Lenders
Categories: Blog Posts
Ordinary people’s money is fast, cheap, easy funding, but why would OPM lenders WANT to give you money?
OPM is usually known as “Other People’s Money,” but with our real estate clients, we think of it as “Ordinary People’s Money.”
Relatives, friends, and people in real estate groups would all be open to lending you money for your investments.
This type of private money is fast and less expensive, with minimal paperwork. But why would these people WANT to give you their money?
Why People Want to be OPM Lenders
Part of why OPM in real estate works so well is because it’s a win-win.
Your lender gets a better return on their money than many other investment methods, for zero work.
You’re paying them a (lower than institutional funding) rate of interest. Especially with the economy as unpredictable as it is right now, people who have cash want a stable place to put it with a consistent return. Becoming an OPM real estate lender offers just that.
In addition to a stable rate, OPM lenders also get to invest in their community. Rather than putting money in stocks, national banks, or huge funds, they get to support a small business like you.
Finding OPM for Real Estate
Reach out at Info@TheCashFlowCompany.com, and we can show you exactly how to find OPM real estate lenders.
What we can’t help you do is keep them – that part is up to you. When you find OPM lenders, make sure to take care of them, get them their returns on time, and be honest throughout the process.
A good lender will either stick with you for the long haul or disappear after the first deal, and it all depends on how easy you are to work with.
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