Finance Roll

Oh boy! Now we are on a hot topic. Who runs the financial world besides who we would consider the 3%-ers? Everyone knows that 3% of the population earns 97% of the income available to make. Why? Because they are doers. Understand, however, that they don't run as much as we think they do. THE BIG THREE are: 1. the Government 2. the Banks 3. the Insurance industry
My job as an investor, in this market or any market for that matter, is to figure out how to be a part of THE BIG THREE. I think it is a process of elimination. How likely is it that the average real estate investor becomes a government official or at least puts themselves in a position to write policy? Not very. How likely is it that the average real estate investor starts an insurance agency or franchises an Allstate office like my uncle did back in Maryland? Again not likely.
Drum Roll Please.................

By process of elimination the only position available in THE BIG THREE is to be a bank. Why is it likely? Because, if you are an active real estate investor, you have access to masses of cash and credit from your private investors, your credit partners, and your colleagues. Believe it! You can be the bank. No more sulking about the points you pay on this loan and that loan. All you need to do is put yourself in position to do the same things the banks do and it is all perfectly legal.

1. Line up Your Private Money

If you are not actively soliciting private money and you call yourself a real estate investor, HA.
You have to have private money to fund the deals you want to hold. Why would you use your own money or credit when you can use someone else's. Send out solicitations to your friends, co-workers, and family. They call that the Warm List. You will be surprised about who will be interested in what you have to offer. Just let everyone know that you can give them a return between 9% and 12% on their private monetary investments and all of the funds will be secured by Real Estate. They will love that because most people have their money sitting in banks and in non-performing investments, losing to inflation and taxes. Show them that there is a better way. We are going to call these people LENDERS.

2. Set up Your Private Money Division

Our title attorney calls this the Loan LLC. You can set up an LLC specifically to handle the private money transactions of the lenders you solicited above. The attorney will also be able to set up the paperwork, notes, options, terms, and any other specifics to your private money needs. You tell them what you want, pay, and they will take care of the rest. The idea here is that when you solicit private funds, you never touch the money personally. It always goes into title/escrow and it is disbursed according to the terms of the deal. Now you are ready to roll.

3. Too Hot for TV

Everybody knows an investor who needs hard money. EVERYBODY knows an investor that needs hard money. Well guess who is a hard money lender now? You that's who. Use the private monies you borrow at 9% and loan at 5 points and 12-14% for 6 month terms. Turn the private funds 3 times in 24 months and watch your pockets get FATTER!! If I'm lying...I'm flying. Now you are the bank and you control your own income. Analyze the deals as if it were your own and if it makes sense loan on it and collect.

As you can see the Lender loans to you and your Loan LLC lends to the borrower. What great things you can accomplish as a professional middle man. If you turn more you make more. It is plain and simple. The hard money division of your real estate investment business is NOW OPEN. You can thank me later or sign up for "the what and the how" real estate investing program in Dallas, Texas where I teach all of these strategies for creating wealth. So, I encourage you to take action on this one my fellow investors.

Blessings to your Real Estate Investment Successes,