After my banker cut me off, I had to turn to another source to be able to fund my real estate deals. I quickly learned the power of asking and the importance of asking for that you want in this world.

1. You make the rules. Whenever you’re borrowing money at the bank, they get to make all the rules. They give you the interest rates, the payments, and the terms of the loan. Conversely, when you borrow money from private lenders, you get to write the rules and set your own terms. In the end, this gives you more control over the deals you make with lenders, the exact opposite of borrowing money from the bank.
2. No monthly payments. The vast majority of deals I make with private lenders do not have monthly payments. We set up quarterly, biannual, or annual payments that allow us more freedom and flexibility. A lot of deals that we have in place don’t require a payment for a full year. This helps us to free up cash flow whenever we need it.
3. No origination fees. When you borrow money from the bank, you’re typically going to have to pay an origination fee. This essentially just stacks up to another point being added to your loan, which costs you more money in the end.
4. You can close quickly. Time is always a factor in this business, so yo
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As most of you already know, I believe that using private money is the best way to fund my real estate deals. I’ve been preaching the benefits of private lenders for years, and have been able to find a great deal of success following a simple system. But the top reason I prefer to use private money is that it allows me to receive multiple checks for every deal. Stop and think about that for a moment. If you’ve ever had to deal with banks, you probably already understand how much of a hassle that whole process can be.

Traditionally, if you’re borrowing from a bank, you’re only going to receive 80 percent of the total purchase price. It doesn’t matter if you’ve found the best deal on the planet, you’re going to need to come up with about a fifth of the funds on your own. When you borrow from a private lender, not only can you receive a loan for the full price of the property — you can borrow more than the house is worth. This is something I like to do to cover any additional repair costs which are needed to rehab a home.

Once the house has been prepared, it can then go on the market. This is another point when having some extra funds can help in marketing or promoting a property. Once you’ve found a buyer for the home, the next big check comes at the closing of the purchase. A strategy that I use to e
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