Hard Money and Private Money for Real Estate Investors
08/18/23 • 49 min
Hard Money and Private Money for Real Estate Investors
Certain real estate investing strategies suggest certain types of financing. For example, most long-term buy-and-hold real estate investors purchasing non-owner-occupant properties will opt for 30-year fixed rate conventional financing or commercial loans. House hackers and NomadsTM will often seek out low or zero down VA, USDA, FHA, and conventional financing options.
However, sometimes the real estate investing strategy will lean toward utilizing hard money and private money loans. Some examples include utilizing the BRRRR strategy or doing fix-and-flips.
In this mini-class, James will go over the basics of hard money and private money loans.
Check out the video from this class here and access the downloads mentioned in the recording:
Hard Money and Private Money for Real Estate Investors - Video and Downloads
In this class, James discusses:
- What is hard money? And, a deep dive into using it as a real estate investor.
- The aspiration goal of becoming a hard money lender and two possible concerns
- What is private money? And, a deep dive into using it as a real estate investor.
- A warning about inadvertent ponzi schemes
- A discussion about licensing required to raise private money and the license I got
- Download a sample of my personal, 25-page Private Lender special report
- Using a business card to raise private money (sample of mine)
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Fullerton real estate investor podcast? Book a free consultation to discuss.
Hard Money and Private Money for Real Estate Investors
Certain real estate investing strategies suggest certain types of financing. For example, most long-term buy-and-hold real estate investors purchasing non-owner-occupant properties will opt for 30-year fixed rate conventional financing or commercial loans. House hackers and NomadsTM will often seek out low or zero down VA, USDA, FHA, and conventional financing options.
However, sometimes the real estate investing strategy will lean toward utilizing hard money and private money loans. Some examples include utilizing the BRRRR strategy or doing fix-and-flips.
In this mini-class, James will go over the basics of hard money and private money loans.
Check out the video from this class here and access the downloads mentioned in the recording:
Hard Money and Private Money for Real Estate Investors - Video and Downloads
In this class, James discusses:
- What is hard money? And, a deep dive into using it as a real estate investor.
- The aspiration goal of becoming a hard money lender and two possible concerns
- What is private money? And, a deep dive into using it as a real estate investor.
- A warning about inadvertent ponzi schemes
- A discussion about licensing required to raise private money and the license I got
- Download a sample of my personal, 25-page Private Lender special report
- Using a business card to raise private money (sample of mine)
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Fullerton real estate investor podcast? Book a free consultation to discuss.
Previous Episode
Commercial Loans 101 for Real Estate Investors
Commercial Loans 101 for Real Estate Investors
Recently, we have been covering a variety of financing options for real estate investors. However, we have primarily focused on financing single-family homes, condos, townhomes, duplexes, triplexes, and fourplexes. But what if you're interested in purchasing a commercial building, an apartment with five or more units, or an industrial property?
That's where commercial financing comes in.
In this mini-class, James will introduce you to commercial financing, explain how it differs from more conventional financing options, and discuss when you might use it as a real estate investor.
Check out the video from this class here:
Commercial Loans 101 for Real Estate Investors - Video
In this class, James discusses:
- An overview of other financing options before we get to commercial loans and commercial lenders in Fullerton
- What are commercial loans?
- When do we typically use them as real estate investors?
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Fullerton real estate investor podcast? Book a free consultation to discuss.
Next Episode
The Importance of Loan Planning for Real Estate Investors
The Importance of Loan Planning for Real Estate Investors
Real estate investing is a little like the game of Chess. You can play the game with an elementary understanding of the basic rules. But, you soon learn that just knowing how the pieces move about the board are the table stakes for being able to sit at the game board.
If you want to do well, you need to start thinking about the consequences of your actions. And, not just the consequences of your actions for the immediate next move, but the consequences for moves multiple turns into the future.
The same applies to real estate investing... you need to be thinking not just about the deal analysis and loan of the property right in front of you; that’s table stakes. You need to be thinking about what the consequences are for that property far off into the future and, if you’re good, for multiple properties and multiple loans into the future.
That’s why loan planning is so important and why we’ll cover it in detail in this mini-class.
Check out the video from this class here:
The Importance of Loan Planning for Real Estate Investors - Video
In this class, James discusses:
- The 10 loan limit from Fannie Mae and Freddie Mac for purchasing non-owner-occupant investment properties
- Why are these loans important to real estate investors
- What do you use after you reach the limit?
- Why is it important to optimize these 10 loan spots?
- What are some exceptions to the 10 loan rule?
- A strategy to double your loan spots
- The NomadTM preferred loan plan
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Fullerton real estate investor podcast? Book a free consultation to discuss.
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