Why You Need Private Money for Your Deals

Welcome to your journey in real estate investing! Whether you’re dreaming of flipping houses, building rental property portfolios, or simply exploring the vast opportunities in real estate, leverage is the backbone to success. Today we will be sharing expert tips explaining why you need private money for your deals. With a clear plan and the right approach, you’ll be well on your way to building a thriving real estate empire. Let’s get started!

Building Your Bucket of Money

Leverage Other People’s Money (OPM)

• Private Loans: Begin by approaching family, friends, or other investors who are looking for better returns.
• Show Confidence: Most importantly, know your projects well and present them confidently to potential lenders.

Use Business Credit Cards

• Avoid Personal Cards: In fact, business credit cards don’t impact your personal credit score.
• Build Your Business Credit: This will surely help you get better loans, as well as better rates in the future.

Finding Great Deals

Work with Wholesalers

• What They Do: Since wholesalers find undervalued properties, they can offer them to investors at a slight markup.
• Build Relationships: Therefore building relationships and getting to know wholesalers will help you find good deals.

Network with Real Estate Agents

• Investor-Friendly Agents: Actually, some agents specialize in working with investors. Begin by finding those who understand your needs.

For Example: The 2008 Crash

• Pivot to Private Money: Following the financial crisis in 2008, banks stopped lending. Successful investors turned to private lenders.
• Build Trust: In deed establishing good relationships with private lenders can provide a stable source of funding in the future.

Summary

To put it briefly, by finding the right leverage for you financial needs you will in turn set yourself up for success. After all, the key is to set up your foundation correctly and maintain consistent effort. Do you have any question regarding where to get started or how to grow your empire? Contact us today to find out more! 

Watch our most recent video: Why You Need Private Money for Your Deals