Michel's Blog

Real Estate Investing and the Advantages of Private Money

Michel Lautensack (Del Val Property Management LLC) — Fri, 20 Nov 2009 17:45:39 -0600

With traditional mortgage and hard money lending getting tighter and tighter for most real estate investors - private lending is fast becoming the only option to finance your deals.

What is private lending? Private money is a type of creative financing that is usually provided by private individuals who have excess money that they are willing to lend at higher rates than they could get at banks or CD's. Their investment is usually secured by the property you are buying and NOT by the borrower. Unlike traditional mortgage lending, the terms and conditions will vary from one lender to another and they usually depend on the agreement between a you and the private lender.

Borrowing money from private money lenders is much easier compared to traditional banks and hard money lenders. Because a borrower only needs the approval of a single person, he doesn’t have to deal with 4 inches of paper work and a 3 to 4 month approval process only to get reject after a long waiting period. In addition, he doesn’t have to present lengthy documents and other credentials because private lenders are not interested with such things. Private lenders first want to know the real estate investment makes economic sense first before they worry about other issues.

Because of such a scenario, real estate investors with poor credit scores can still borrow money from private lenders if they are prepared and the deal makes sense. However, they must be able to show that their real estate investment makes sense and will generate enough rent to cover their interest payments and the property collateral is worth more than the loan amount. Therefore, if an investor wants to borrow $125,000 from a private lender, he has to make sure that the collateralize property’s market value will hit the $175,000 with an appraisal once repaired and renovated.

One reason why many real estate investors prefer private money over looking for a business partner who will finance a project is that they can earn bigger profits. Most private lenders ask for interest rates of 8% to 15% range while business partners are likely to demand a larger portion of the profits when you sell a property.

The key to getting private money is to be prepared and have a well thought out business plan and credibility kit. Without these two items in place it is hard to image a successful business person giving you money if you do not impress the person with your well thought out business plan. Take your time and be prepared to answer all the questions about the property such as what are the value of comps, what are rents in the area and what are the cost to fix up the property. Also spend some time to develop your credibility kit to show your experience and knowledge as a real estate investor.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit .

50 Low or No Cost Marketing Ideas for Today’s Real Estate Investor Using Social Media!

Michel Lautensack (Del Val Property Management LLC) — Sun, 15 Nov 2009 20:16:01 -0600

Please join me Tuesday evening November 17, 2009 for a FREE teleconference at 8:00 PM EST and learn “50 Low or No Cost Marketing Ideas for Today’s Real Estate Investor Using Social Media!”

To sign up please go to Tuesday Night Teleconference Tips

Hope to see you there

Mike Lautensack
http://www.learnrealestateinvestingblog.com/

Real Estate Investors - How to Sell Your Property Before You Buy the Property - Build a Buyer List!

Michel Lautensack (Del Val Property Management LLC) — Sun, 08 Nov 2009 18:22:16 -0600

With your real estate investment business what is at the top of your "frustration" list?

Could it be trying to determine if a certain property is a good deal not? Trying to determine if your offer prices is "low" enough for you to make a profit in this market place.

For most real estate investors, this dilemma causes a lot of confusion and frustration. This is may be because your definition of a "good deal" may be skewed.

What makes a property a good deal? The answer is: one that has a ready buyer at a profit.

As long as you have a buyer ready and willing to buy that property and there is room for your profit, then you have a good deal on your hands. You can actual predict what your profit will be with the knowledge of the buy and sale price.

For example, if you know you have a property under contract for $120k and you can have a ready buyer lined up to buy from you at $130k you have a $10k profit locked in.

But the obvious question is how do you get a ready buyer?

You do this by building and maintaining a "buyer list". Building a list of ready buyers is the key. If there is a buyer from your list of buyers, who is in the market for the property you are looking at - then voila you have a good deal!

The way to build your buyers list is through aggressive marketing and here are 5 simple ways to start your list:

Post an ad on Craig's List, Backpage.com and other local internet bulletin boards with ads like "I sell ugly houses" or"Fixer Homes Avaialble". Do this once per week and be sure to capture everyones email address for future follow up.
Write down the phone number when you see "I Buy Houses" signs, ads, and websites. Call these investors and get their info, and let them know you're an investor and would like to bring them properties that are available. Add them to your list, and don't forget to get their e-mail address for when you automate!
Hand out at least 24 business cards at REIA meetings and be sure to go to as many REIA meetings as possible. If you not sure about where meeting are go to Meetup.com and search your local area for real estate investors.
Talk to everyone and tell them what you do and ask them to spread the words to their friends, family and coworkers.
Advertise in small local newspapers that you have "Fixer" homes available for sale and provided a phone number and email address.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog .

Real Estate Investing - Learn How to Make Money in Real Estate Without Cash

Michel Lautensack (Del Val Property Management LLC) — Sat, 07 Nov 2009 14:54:51 -0600

It is a widely held belief that if someone wants to invest in real estate market, he must be loaded with cash. The idea is not entirely true. If you don't have enough money you can still invest in real estate. The notion seems unbelievable at first glance but it's true. Real estate investing with no money to put down is a viable option.

In order to invest in real state without down money, you must be creative in your approach and devise various methods for utilizing other people's money to finance your transactions. Some of those innovative methods are listed below:

Use Double escrow

If you have a finance background, you must have heard of the escrow account. There is such a term as double escrow. Double escrow means buying and selling property at almost the same time. The money received from sale is utilized to pay the purchase price of the property. The sale price is a bit higher then the purchase price which is your profit. In a double escrow, profit is realizable only after both part of the transaction are simultaneously completed. Before going into this kind of transaction you must first secure both ends of the deal or you might end up in a jam.

Use seller's financing

Usually a property owner already has one or other lending facility. What you have to do is convince him that you are going to take over his mortgage for a specified period of time until you can find a suitable buyer for the property. When the property is sold, the sale proceeds of the property can be used to pay off the mortgage. The difference amount is your profit.

Mortgage Take Over

There is a paragraph in virtually all loan agreements which is called "due-on-sale" clause. This clause stipulates that when the title of a property is transferred, the lender has the right to demand full settlement of his loan. According to this clause it is the lender's prerogative whether or not to demand full settlement of loan. If you take over a mortgaged property and make timely payments there is every chance that the lender will not exercise his right of "due-on sale". This way you can buy properties without having to go through a credit check. The properties can later be sold to prospective buyers.

You might be discouraged in the beginning when you go and try out any of the above mentioned options. But there are great opportunities of making money in the real estate market without down money. The key is to build a workable real estate investing strategy and not get discouraged by early failures.

Residential Property Management: Tips on How to Find Renters Using Newspaper Advertising

Michel Lautensack (Del Val Property Management LLC) — Sun, 25 Oct 2009 20:03:19 -0500

Importance of Headlines

Particularly with newspapers you don’t have a lot of space and it’s expensive, so you’re going to have maybe a headline, one or two bullet points, and then a phone number or website. You don’t have a lot of space so you’ve got to make sure that you do it the right way. Your headline has to be appealing.

Let’s use Louisville as an example. You don’t need to put Louisville in your headline. Everybody knows it’s a Louisville newspaper. You’ve wasted your space. We see that mistake a lot.

Putting irrelevant words in your headlines doesn’t mean too much. Make sure your headlines have relevant words. If it’s a particular neighborhood or section of town, if it’s a well-known area, make sure you put that in there, but not the town.

Be Concise

Be very concise. If you can drive them to your voice mail system or your website, that’s the best way to do it. They would go there and find out if they have some interest. They would see some photos or the video and would kind of screen themselves out and save you a lot of time.

Be Careful of Fair Housing

One thing you’ve got to be careful of is violation of Fair Housing when you advertise. Remember people are going to look at your ad and claim somehow that you’re being in violation of Fair Housing rules. This is a whole subject by itself. We can spend a whole night talking about this. You have to be careful about the words you use.

You can’t use words like church – even if it’s right next to the biggest church in town, or directly across from the biggest church in town. You can’t mention that church. That is a violation.

You can’t mention any sort of family – “It’s a family neighborhood.” If you say the words “family neighborhood” in theory you might be implying that single people aren’t welcome so you’ve got to be careful.
Or vice versa, if you use “apartment designed for singles,” it might be construed as excluding families. Be careful about the words you use. Think about them a little bit.

One of the things I’m going to do on the checklist you’re going to get from me is there are a lot of things in there in terms of words to use and then alternative words to use, particularly if you want to write an ad and you want to use the word fantastic three times.

It will give you fantastic and then give you two or three alternative words to use to try and mix up your words. My template ads are on that checklist. You’re going to get those as part of this program.

Be careful of Fair Housing. If you want HUD offers, in most areas a one day course doesn’t cost much, say $25, where you can take a Fair Housing course. You can learn all about the rules and regulations of Fair Housing. If you’re a serious property management I would do that. Go and spend a Saturday or whatever day they offer that course, take it and learn those rules and regulations and keep yourself out of hot water.

I invite you to learn more about Property Management and get a free 60 minute audio titled “Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Maximum Profit and Avoiding Tenant Headaches” by going to http://www.realestatewealthtoday.com/PMS.html.

Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.

Learn How to Collect Rent and Deal With the Eviction Process Without Attorneys

Michel Lautensack (Del Val Property Management LLC) — Sun, 18 Oct 2009 15:38:57 -0500

Collecting rent is one of those situations where I have to use some rules of thumb, some feeling, some gut to try to figure out whether it's time to go and do the eviction or do we try to work with the tenant and see if they can get caught up. Maybe it's a temporary problem. We can do a weekly or monthly payment plan and maybe we can get them back on paying again.

In the same token, if I don't feel it's going to happen, we have to go to eviction quickly. There's no point in waiting and spending two or three months waiting around for something that's not going to happen. That takes some gut feel and experience.

Know the Rules for Eviction

We'll talk about the eviction process. There again, just like the rules and regulations, you've got to be smarter than your tenants. You've got to know the rules better than they do, because if you don't, I guarantee you they will take advantage of you. They will tell you things that are not accurate and if you buy into it you're going to end up being their whipping post.

Now every state might be slightly different and I recommend you go to Google and search for your sate and landlord regulations and study them front to back. Knowing the rules and then enforcing them is the single most important thing in terms of collecting rent.

Should you use an attorney for evictions? You guys can do it better than an attorney can. They will do almost nothing for you except the fact that they're attorneys and they'll charge you $250-300 an hour.

I can probably out perform any attorney in this area and I can do it for $50 an hour for my clients, probably one sixth of what they'll pay an attorney.

How to Retain Tenants

How to work with tenants and try to encourage them to stay tenants, making sure that you're resolving issues with them in a friendly and professional way so they say, "Hey, yeah, I want to stay another year, two years, three years whatever."

If you are late with doing maintenance, you drag your feet, you try to find excuses why not to do it every time they call you, you don't return their calls, they got a little drip here and there, you don't fix it, do you think they're going to stay that second year after that lease runs out? I don't think so.

Again, you want to keep at it. You want to work within trying to keep the tenants as long as possible. Also, we have little things in our lease that encourage tenants to sign a new one-year lease. They can go month-to-month but there are some penalties - I wouldn't call it that - but just some things in that lease that make it more onerous on them as opposed to coming back to me and saying, "I'd rather have a new one-year lease than go month-to-month."

We probably have 75 to 80% of our tenants come back to us for a new one-year lease as opposed to remaining month-to-month. It's hard for you as landlords and owners to manage if you don't know beyond 30 days whether your tenant's staying or going. It's much nicer to have a one-year lease and you know that for the next 12 months at least you're going to get rent, so we'll talk about that.

I invite you to learn more about Property Management and get a free audio titled "Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches" by going to http://www.realestatewealthtoday.com/PMS.html

Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.

The Advantages of Professional Property Management Vs “Mom and Pop Management”

Michel Lautensack (Del Val Property Management LLC) — Tue, 13 Oct 2009 20:37:37 -0500

One of the things we’re going to focus on is what is professional management versus mom and pop management. Now many of you may have a couple properties. Maybe you’ve read a book on property management, I don’t know, but if you ultimately want to make a business and to grow wealth and to be a serious real estate investor, you need to become a professional property manager.

That is you’re better at it than most people. You’re better at it than nine out of 10 investors. You take it seriously because you’re investing a lot of your own money in these properties, a lot of your time and a lot of your energy, and you want to get the most you can out of it.

That’s where the money is, because if you don’t manage it properly, the value of that asset declines rapidly. I guarantee you, if you’ve bought a property, put a bad tenant in there and they destroyed your property, you’re looking at $5,000, $10,000, $15,000 of damage. Not that property management can totally eliminate that possibility, but certainly professional management versus mom and pop management makes a huge difference.

Advantages of Property Management

We’re going to go through that and understand that process. We’re going to go through the advantages of property management. Why is it worth you getting on this call for two hours for a series of four calls? What are the monetary advantages of doing it? Are there monetary advantages to it? Why not just read a $12 book?

Sure, you can do that, but everybody knows reading a book is a hard way to learn. It’s not interactive. You won’t have the ability to fire questions at me. Maybe you’re pretty good at property management and you have a couple areas you’re weak at. You won’t have the ability to fire questions at me.

Again, filling a rental. Let’s say we had a $900 a month rental. Filling it 30 days earlier than you would otherwise puts $900 in your pocket. So the monetary issues here are tremendous. Keeping a tenant a second year as opposed to losing them because you didn’t treat them right or you didn’t fix the property right or whatever, reselling a vacancy is tremendously expensive.

You could be looking at two months vacancy, $900 per month, and costs you have to pay to maybe carpet in between tenants, so maintaining a tenant is again a huge monetary issue. So there are clearly some monetary issues here that can be quite overwhelming in terms of cost savings.

We’re going to talk about the importance of education, these kinds of calls tonight, the importance of doing it on a continuous basis, meaning joining your real estate clubs, looking for other resources, maybe join my coaching program at some point down the road, but continue to educate yourself further and more completely as time goes by.

Again, a professional real estate investor continues the education process and never stops. A mom and pop learns a couple things and then stops. We’re going to talk about the difference between the two. How to do things like develop contacts and network, how to work with contractors.

I invite you to learn more about Property Management and get a free audio titled “Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches” by going to http://www.realestatewealthtoday.com/PMS.html

Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.

The 6 Steps to Developing Your Own Private Lending Program

Michel Lautensack (Del Val Property Management LLC) — Wed, 07 Oct 2009 20:46:00 -0500

What do you think your real estate investing business would be like if you had unlimited access to money for profitable deals? Imagine finding a great deal and be able to call up a private lender and outlining the deal and after some discussion the person yes how much money do you need and where can I send the check? Do you think you could get some price discounts from sellers when you knew you could close and close quickly? How would that affect your lifestyle?

This is possible for you if you committee the time and energy to develop a private lender program. It is not a get rich quick plan. You must be organized and have a well developed business plan and marketing plan to meet and develop private lenders and build relationships.

As part of private lending program you must have ways to attract private lenders to call or email you to start the process. Once a potential private lender has contact you must send them some information about your private lending program and then call them and set up a meeting to advance the discussion.

Here are 6 steps to a private lender program.

1) Business Plan: You must have a solid and believable business plan that fits your experience level and skill set. If you have only bought one or two properties you cannot tell a private investor you plan to buy 12 properties this year. This is not believable and the private lender will not lend you money. Your business plan must be well thought out and when you sit in front of a prospective investor it must be believable and achievable without being a stretch.

2) Credibility Kit: Building your personal Credibility Kit is going to be one of the most important tools in your real estate investing business. Nothing speaks louder or more clearly about you or your integrity than letters from your sellers, personal reference letters, letters from your lenders, copies of ads you have run, photos of properties you have bought and sold, testimonials and references, and certifications or professional licenses. The professionalism that a good Credibility Kit presents to private lenders is very powerful and shows you as a real estate investing expert.

3) Marketing Plan: You must have a good Marketing Plan including several different types of lead generating marketing to get potential private lenders to call you and request more information or come to your educational seminars. These methods can include post cards, flyers, networking within professional organizations, and group or one-on-one educational presentations. We do NOT recommend any big or public advertising such as newspapers or internet.

4) Follow-up and Presenting Deals: Once your marketing has generated some leads it is time to present deals. You may want to meet with the potential lenders in a one-on-one meeting and lay out why your real estate deal makes sense and how the investor’s money is well protected and what return they can expect to earn. You also may want to send out a short summary to a number of potential lenders and see if they are interested by having them call you for more information and details. If one of the lenders calls from your emails it is important to follow up and send both your Credibility Kit and deal summary for their review.

5) Legal Forms and Documents: One of the great advantages of private lending is how simple the forms are for a typical private lending transaction. In fact, most private lending transactions only involve four documents including a Mortgage or Deed of Trust, Promissory Note, Insurance and Disclosure Statement. The most important document is the Promissory Note and this is where you add certain clauses that allow you to control the deal and give you flexibility down the road.

6) Closing: Once you have a private lender ready to go and your forms prepared for the deal, it is time to close. I strongly recommend to my coaching students that they always close with a title clerk or attorney and let them prepare the closing documents and handle the money for you at closing. For the small fee they charge, it takes a lot of headaches away and adds a level of professionalism to your investing business. I also strongly recommend that the title clerk or attorney record the private lenders mortgage with the local county land records office.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by going to http://realestatewealthtoday.com/FREE-eBook.html .

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

Real Estate Investors - Learn the Most Important Element You Must Have to Make a Successful Offer!

Michel Lautensack (Del Val Property Management LLC) — Sun, 04 Oct 2009 16:37:20 -0500

The first step in the instant offer system is simply to build rapport. This is a fundamental building block to any offer. You cannot develop a deal with a seller if you're not in rapport.

What is a Rapport?

What is rapport? It's hard to define. It's not necessarily being friends. It's not necessarily having a long relationship. It's not that. It's a sense that the two of you are on the same page. There's some comfort between the two of you.

There is starting to be a sense of trust that you're comfortable with each other. You have a sense that the other person and you are kind of moving in the same direction that both of you want to go.
If you don't have rapport you cannot move forward in this system. It is absolutely the most essential of the five steps. If you do not have rapport then really the process is over.

The Importance of Rapport

If you go talk to a seller and the first couple of minutes are very awkward, maybe very argumentative or you say something that the other person doesn't like - it gets their back up a little bit - the offer process is really over at that point. It really can't proceed until you come back and you develop that rapport.

It doesn't mean you can't come back and get it, but at that point you've got to take a minute and build rapport.
How to Develop a Rapport

One of the best ways to develop rapport when you walk into somebody's home is to start to ask questions and take a little tour of their home. Make comments about some of their belongings in the house.
Maybe they've got sports memorabilia and you can make a comment about it if you're in a sports town. You can talk about the great game a couple of years ago, the Superbowl, World Series or whatever. You're developing some rapport. The two of you are developing some commonalities. You're starting to understand each other.

If the person has pictures of their kids or something of that nature you can make comments about that. If there's something about a college, maybe you can make some comments about that - you or somebody you know has been there.

Basically you want to walk through the house with that individual, spend a few minutes and just chat about relatively minor things - nothing important. That is the rapport building process. You can compliment the house. If it's decorated nice or there's something you particularly like about the property, a compliment is obviously a process of building that rapport. It's important that you go through this step. It's important that in your mind you take some time.

I know everybody wants to jump to the table and start making the offer, but this process needs to take its time. Let it build and develop naturally. If this walk through takes half an hour, let it take half an hour. Don't try to force it. Again, the rapport will happen naturally if you allow it to.

I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to
Real Estate Investing Blog.

Real Estate Investors – Learn the 5 Key Elements You Must Have to Make “No Money Down” Offers

Michel Lautensack (Del Val Property Management LLC) — Thu, 01 Oct 2009 17:40:08 -0500

I would like to talk about what I call the “WOWWW” formula. It is a simple formula that you’ve got to understand and incorporate into your business if you are serious about real estate investment.

There is simply no way that you can structure a truly no money down and creative offer if you don’t understand this formula. There are just five pieces to it. Four of which are “W’s” and one of which is an “O”. The five important elements to working with a seller before you can structure an offer you must know these five pieces of information.

“W” When

You must know when. That is basically when do they want to sell? You want to understand their sense of urgency, their motivational level. If they want to sell months from now, they’re not very urgent. You’re not going to get a very good deal, and it’s really not something you should be spending much time on.
I’m not saying you don’t capture that person’s name, email and phone number, and put it in a database somewhere and follow up with them on a regular basis through postcards and what not. But they’re not going to be a deal this week or next month. They’re simply not.

If they’re not properly motivated, and the when is motivation, if they are going to be doing a deal in the next 30 days because of a foreclosure, they’re moving out of state, or they’re out of state or about to miss a mortgage payment because they’ve been trying to sell it for a year and they can’t sell it and they’ve run out of money, then their ‘when’ has really shortened up.

“W” What

What is their situation? That’s kind of related but you need to understand what’s going on with them. Why do they need to sell? Is it a foreclosure or pre-foreclosure? Is it a divorce? Is it a sale where they can’t get it sold? Is it that they bought it to flip?

We’re seeing a lot of this. People have bought things to flip them, went in and rehabbed it – spent a lot of money – and they were hoping to sell it but the market turned on them and they got stuck. So you need to understand what their situation is. That’s an important element of this.

“W” What Is the House Worth

Worth is always difficult to nail down, but you should do your homework and figure this out. You should look at comps or appraisals or whatever other sources of information you want to try to figure out what the properties worth fixed up.

It may be worth $150,000, $200,000, $300,000 or who knows. You should have some sense of what the property’s worth to make an offer.

“O” Owe

You should know what the person’s owes on the mortgage or mortgages. This is a critical element and something a lot of people don’t understand. You cannot make an offer through the MLS system if you don’t know what the other person owes. It’s very hard to make a creative offer if you don’t know what they owe.
If the property is free and clear and there’s no mortgage, then that will dictate a completely different type of offer. If they’re completely under water and the house is worth $130,000 and the mortgage is $150,000 that will drive a completely different type of offer. If they owe $90,000 that will drive the ultimate offer.
You cannot make quality offers to sellers if you don’t understand what they owe. It’s absolutely critical. All five of these are critical.

“W” What They Want

Probably the least important is what they want. That will change over time. If they’re not motivated and don’t need a quick sale – one and two aren’t really in place – most likely they’re going to want a high price. They are not truly ready to do a deal. They are not where you need them to be to do a deal.
What they want first all changes over time. It’s also probably the least important of the five items. However, you do need to know what that is. If they want some outlandish number, you don’t want to spend a lot of your time and effort on it.

That is the WOWWW formula. Use it on every deal and make much better offers.

I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to
Real Estate Investing Blog.

Real Estate Investing: How to Use Voice Mail Systems to Improve Your Marketing Response Rate

Michel Lautensack (Del Val Property Management LLC) — Sun, 27 Sep 2009 17:36:52 -0500

Choose a Voice Mail System

Before setting up voice mail systems you have to choose one that will suit the needs of your business. I use a company called Freedom Voice Systems. I think there are probably 8 or 10 different programs out there that are somewhat similar. A typical voice mail system will have a couple different price points depending on your needs.

A basic system may only have 10-20 different voice mail boxes. A more advanced system, the one that we use, has I think has 1,000 boxes or maybe 900. I think it starts at 100 and goes to 999, so I guess that’s 900 total boxes that we have available within the voice mail system.

A typical price for a voice mail system of any real quality is going to be somewhere around $20-40/month, a very minimal investment in terms of the amount of money that you put into that.

Using Voice Mail to Improve Response Rate

What a voice mail system allows you to do, once you’ve got it in place – let’s say you want to start marketing to sellers. You want to go out and you want to create some marketing pieces. You’re going to have let’s say a newspaper ad, you’re going to have a postcard, maybe you’re going to have your business card, and you’re going to have one or two other pieces of marketing, whatever they might be.

With each one of those various pieces of marketing, you’re going to put a different box number. You’re going to put Box 100, Box 101, Box 102, Box 103. The reason for that is that every time somebody calls you off of one of your pieces of marketing, the system will record where that came from.

Let’s say at the end of your first month you’ve got 10 calls on Box 103. Let’s say Box 103 was postcards, so you know that if you sent out let’s say 1,000 postcards and you got 10 calls back, that’s a 1% response. That’s not a bad response. Now maybe there’s some things you can do to make it better, but you know at least on your first mailing you got a 1% response. That’s not bad. It allows you to know precisely what your results were. You can know it mathematically.

So now what you can do the next month is maybe you send out another 1,000 postcards. Maybe you change the headline, maybe you make the offer a little bit nicer, maybe you change some of the information. You change the postcard, you do it again, and this time you get 15 calls the next month. Obviously what you did that second month is better than what you did the first month. Now you’ve improved your system and it’s gotten even better.

I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.

Why Private Lending is HOT!

Michel Lautensack (Del Val Property Management LLC) — Sat, 19 Sep 2009 19:45:56 -0500

We are all aware that real estate prices are down anywhere from 15% to 40% across the country. In the past, you might have invested $15k to $30k to buy rental property that rented for $1,000 per month and netted the investor 10% to 15% on their investment.

Now you can buy that same property for dramatically less but the rent has remained the same, or even gone up slightly, over the last couple years. So the return to the investor has gone up substantially and 30% to 50% returns on your investment are ordinary today

The hard part right now is being able to get a bank loan. Banks want to see 20% to 40% down from real estate investors AND excellent credit, traditional employment, and personal guarantees. If you do not meet these criteria you are essentially lock out of the traditional mortgage market and will be unable to borrow money from banks. Many of the other non-traditional loans such as “no-doc”, ALT-A and no money down loans have all disappeared due the financial crisis.

So what is the solution for real estate investors that have been locked out of the traditional mortgage market?
Private Lending is the answer!

Private lending is a consistent source of funds with which to purchase real estate deals and to which you can often go back to again and again and again. In fact, the more you use, the more will become available as you develop relationships with more private lenders.

The reason why private lending is HOT today is so many people are lock out of the traditional mortgage market and private money is their only option to get money for real estate investments.

What is private lending and who are private lenders?

The definition of a ‘private lender’ is an individual that you can negotiate directly with on a personal one-on-one basis from whom you wish to borrow money for real estate investments. The money can be used to purchase rental real estate investments or to supplement funds borrowed from a bank to cover down payments.

Private lenders come from all walks of life and may not know the first thing about the real estate business. But what they do have is extra cash or assets that they can invest in your real estate deals. These individuals are generally middle class people, who have some extra funds to lend. They can be retired business people, corporate executives, professionals such as doctors, lawyers, or business owners or even blue collar workers.

Private lenders are looking for returns substantially above the 3% to 5% they get at the bank with CD’s or money markets. Most private lenders are looking for investment returns in the 9% to 15% range and secured by local rental real estate.

For more information please go to http://www.private-lending-secrets.com/.

Property Management Secrets for Real Estate Investors

Michel Lautensack (Del Val Property Management LLC) — Mon, 07 Sep 2009 17:54:49 -0500

One of the best ways to build up long-term wealth and passive income is by buying and holding rental properties.

While being a "landlord " isn’t a glamorous job… if you run your rental property business correctly, it can be a very rewarding, easy, and profitable way to invest in real estate.

In just 72 hours we are starting a power packed 3 4 Night Live Tele-seminar where you'll learn simple step-by-step process to develop your own Property Management Program for Maximum Profit and Avoiding Tenant Headaches.

Imagine the money you will save by simply avoiding one bad tenant (can you say $1,000's). Now imagine having good tenants that pay on time and do not call you with minor problems and allow you the time and energy to focus on buying more real estate and growing your business.

Well this program will give the knowledge to achieve these goals.

To learn more about Property Management Secrets for Real Estate Investors and listen to a 30 minute audio please click here ===> http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Who is Property Managements Secrets For?

Prospective property owners and landlords
First time property investors
Portfolio builders who need their properties to work for them
Experienced multi-property landlords looking to get the most from their property

This course starts Thursday September 10, 2009 so sign up tonight at http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Thanks

Mike

http://www.learnrealestateinvestingblog.com/

The Top 10 Real Estate Investment Blogs

Michel Lautensack (Del Val Property Management LLC) — Sun, 06 Sep 2009 14:45:23 -0500

I have compiled a list of the Top 10 Real Estate Investing blogs – several of them I use on a regular basis and recommend you do the same. I try to take the good and interesting blog post and routine post them on my blog at http://www.learnrealestateinvestingblog.com/.

Please bookmark this site and I will update from time to time, so stay tuned.

Enjoy the list, and if you like or know other blogs too, e-mail me or include them in the comment field, and I’ll take a look.

The Top 10 Real Estate Investment Blogs

http://www.realestateweblog.org/

http://www.biggerpockets.com/renewsblog/

http://www.investorwealth.com/blog/

http://www.equityscout.com/blog

http://www.investing-secrets.com/

http://topsites.blogflux.com/real-estate/

http://www.investorloft.com/blog/

http://www.inman.com/blog

http://www.reiblog.org/

http://www.realestatewebprofits.com/rewp/blog/real-estate-blog.php

Thanks

Mike

http://www.LearnRealEstateInvestingBlog.com/

Property Management Secrets for Maximum Profit -Teleconference Starts Next Thrusday

Michel Lautensack (Del Val Property Management LLC) — Thu, 03 Sep 2009 20:58:38 -0500

Many of you are aware that I started a property management company
about 3 years ago. We currently serve over 100 real estate
investors and manage about 200 rental properties.

As part of starting this company, I have had the “privilege” of
making just about every mistake known to man. We have done stupid
things like

Advertised with a typo in the phone number and wrong house number;
Misplaced a lease and was not able to find it later;
Putting tenants into a property and the tenant never made another rent payment after that; and
Used a contractor and actual paid him before they did the work – Mistake……

Why do I tell you about my mistakes…to show you that I have made
all these mistakes and now I can teach you how to avoid them and
possible save you from making the same mistakes and save you
thousands of dollars?

As part of the Property Management Secrets for Real Estate
Investors tele-course starting September 10, 2009 we will spend a
lot time talking about things like

Professional management versus “Mom and Pop” management and why a professional management style is the key to long term success
The Advantages of Professional management

i) Improved profits
ii) Maintain your property for long term value
iii) More fun dealing with better tenants and more cash flow

Part-time versus Full-time property management and how to balance

If you would like more info on the Property Management Secrets
starting September 10, 2009 and get FREE 60 minute audio please go
to http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Thanks
Mike Lautensack
http://www.LearnRealEstateInvestingBlog.com/

Property Management - FREE Audio on the 10 Success Secrets of Property Management

Michel Lautensack (Del Val Property Management LLC) — Thu, 27 Aug 2009 06:50:19 -0500

Do own a Rental Property or have you ever thought about buying a
rental property?

Have you ever had a problem with one of your tenants like
nonpayment of rent, late rent, complaints about maintenance?

How would you like to become a more professional property manager
and move beyond "mom and pop management".

I just completed a 60 minute audio titled "Learn the 10 Success
Secrets of Property Management Every Real Estate Investor Must Know
to Manage Your Own Investment Properties for Profit and Avoid
Tenant Headaches!"

If you would like to listen to this FREE audio please go to
http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Here is what you are going to learn and discover in this brand new
tele-seminar:

What is Property Management and why it is absolutely essential to be successful in real estate investing...

How to use both offline and online marketing techniques to get the phone buzzing with qualified potential tenants...

The 3 keys steps you MUST take to screen potential tenants and maximize your potential of getting good long term tenants that can make landlording a joy...

Discover the advantages of a true professionally lease designed to protect the owner versus a "store bought" lease which favors the tenant...

How to Get Your Tenants to Stay After the First Year...
And of course, a whole lot more!

If you would like to listen to this FREE audio please go to
http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Thanks
Mike Lautensack
http://www.LearnRealEstateInvestingBlog.com/

Give Me Your Best 1 or 2 Marketing Ideals - I need some quick help -

Michel Lautensack (Del Val Property Management LLC) — Sat, 15 Aug 2009 09:31:50 -0500

I am a property manager and very good at getting renters to call me for new listing - but we are just starting to sell properties as well as rent

I am not nearly as good at selling and would like to get everyone's help on putting together 10 to 15 ideals on how to best get prospective buyers to call on my listing besides the two we are doing including MLS and Craig list

FREE or low cost is always preferred but would rather have good list and then we can test and determine what is cost effective

any ideas are welcome and I will organize them all and re-post as new blog post so everyone benefits

Thanks

Mike

The Case Of The Disappearing REALTOR®

Michel Lautensack (Del Val Property Management LLC) — Sat, 15 Aug 2009 08:34:51 -0500

very good comments...

Via Kristina Pratt, REALTOR® - JustDuckyHomes.com (St. Louis' Illinois Suburbs - Coldwell Banker Brown Realtors):

Sounds like the title to a tantalizing new mystery book, doesn't it? A book like that might be chock full of suspense with the characters experiencing emotions ranging from confusion to frustration and a maybe even a dash of irritation.

Too bad that what I'm talking about here isn't fiction. For far too many home sellers, this mystery is all too real and common. Every day in our market sellers are wondering "What happened to my REALTOR®?"

Nancy and I handle a lot of sellers who have had their listings expire from the MLS for one reason or another. Sometimes it's price, and other times it's lack of attention from the listing agent. Here's a prime example:

Last summer we visited with a seller that had his home on the market for one year with another agency. His listing had expired and he was interviewing new agents. A really good move on his part - sellers should talk to as many potential agents as possible to find a good fit for both them and the agent. A few days after we talked, he called to tell us that he had chosen another agent but that it was a close call.

His house has now been on the market for over 560 days. When I pulled up the listing history in the MLS, I noticed that the listing had only been touched once over the past year - and that was to extend the listing agreement. In our MLS, agents input prospects to receive listings as they come on the market - the catch is that if your listing is there BEFORE the prospect is entered by the another agent, the prospect doesn't receive your listing. So for approximately 10 months, his listing has sat there unattended and has not been populated into the listing cart of ANY prospect after he was listed.

It's actually sad, isn't it?

The number one complaint I hear from sellers who have had their listing expire is "My REALTOR® stuck a sign in the yard and disappeared. I would have lowered my price if they had taken the time to do a market update every few months. I never heard any feedback from showings, and in the 100 degree summer my house was being marketed with a picture of it with snow on the ground. What gives?"

I believe that there are some agents out there that think the work stops when you get the listing agreement signed. That's just not the case.

The gentleman in my example above took all the right steps, he interviewed multiple agents and he didn't pick his agent based solely on price. So how can Edwardsville and Glen Carbon home sellers avoid becoming the main character in a bad mystery novel? Arm yourself with these 10 questions for any agent you interview.

1. How often will you communicate with me? How will you communciate with me? (If you prefer a call and your agent prefers e-mail, hash that out now. Communication is the foundation for a great team, and you and your agent are a team).

2. How long do you normally take to return a phone call?

3. How long do you normally take to respond to an e-mail?

4. Will you provide me with market updates that compare my house to ones that have closed as well as my active competition?

5. When the seasons change, will you update your marketing materials?

6. Will you set me up in the MLS to receive automatic e-mails when something new comes on the market that my home will be in competition with?

7. Can I deal with you personally when I have a problem, or do I have to go through your assistant?

8. Will you provide me with a monthly status update about where my home is being advertised?

9. Even if you can't reach the other agent for showing feedback, would you please still call me and at least let me know that?

10. Will you change MLS descriptions every few months to give my listing a fresh look?

If you receive an unsatisfactory answer to any of these questions, move on to the next agent. The seller-agent relationship is not like an employer-employee relationship... it truly is a team effort and you must find an agent that matches your style for your home sale to be a success.

Questions about selling your home? Stop by Sacred Grounds Cafe in Edwardsville every Tuesday from 12 - 1 to have them answered. We'll be there talking all things real estate - and we'll even buy the latte.

-----

About the Author: Kristina Pratt is a REALTOR® with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Nancy Milton help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Kristina@JustDuckyHomes.com

Learn Property Management Secrets for Real Estate Investors

Michel Lautensack (Del Val Property Management LLC) — Fri, 14 Aug 2009 10:35:21 -0500

Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches!

I am going to to do a power packed Free 45-60 minute LIVE Tele-Seminar where you'll learn the step-by-step process to develop your own Property Management Program.

Every successful Real Estate Investor has crucial success areas they must focus on to make their investment properties perform profitably. They know that focusing on the right things leads to high tenant occupancy and rental income profits. They also know focusing on the wrong things ultimately leads to disastrous results and never ending tenant headaches.

So here is what you are going to learn and discover in this brand new tele-seminar:

What is Property Management and why it is absolutely essential to be successful in real estate investing...

How to use both offline and online marketing techniques to get the phone buzzing with qualified potential tenants...

The 3 keys steps you MUST take to screen potential tenants and maximize your potential of getting good long term tenants that can make landlording a joy...

Discover the advantages of a true professionally lease designed to protect the owner versus a "store bought" lease which favors the tenant...

How to Get Your Tenants to Stay After the First Year...

And of course, a whole lot more!

To sign up for this FREE tele-seminar on: Tuesday, August 18, at 8:00 PM Eastern simple click here ===> http://www.realestatewealthtoday.com/PMS-Signup.html

Even if you know you can't make the specific time, register anyway so I can send you a link to the Audio Replay...

It's going to be a good one, so register now at

To sign up for this FREE tele-seminar on: Tuesday, August 18, at 8:00 PM Eastern simple click here ===> http://www.realestatewealthtoday.com/PMS-Signup.html

Mike Lautensack

Real Estate Wealth Today
http://www.realestatewealthtoday.com/

P. S. I only have 125 lines available for this call, so please get on 5 minutes early so you don't miss the call.

P. P. S. We also now offer a limited number of people one-on-one private coaching to grow and expand your real estate investing business with private lending - If interested please click here and fill out the form and I will call you to discuss your needs.

To sign up for this FREE tele-seminar on: Tuesday, August 18, at 8:00 PM Eastern simple click here ===> http://www.realestatewealthtoday.com/PMS-Signup.html

Rate of Home Ownership is Plunging

Michel Lautensack (Del Val Property Management LLC) — Sun, 09 Aug 2009 10:15:41 -0500

A recent USA Today headline states "Rate of Owning Homes is Plunging - Analysis forecasts drop to 1985 levels".

Homeownership in this country peaked at about 70% in 2005. Since that period the homeownership rate has declined to 67.4% this year and is projected to continue to drop dramatically to pre 1980 levels of about 63% by 2020.

During the late 1990's and early 2000's there was a strong push by our government to increase home owners with the view that home owners improve neighborhoods and the American quality of life. They pushed the mortgage industry to find ever more ways to make it easy to get a mortgages and buy a homes. In hind sight, we know we push too hard and were putting people into homes and mortgages they could not afford. These folks should have remained renters and
avoided all the foreclosure headaches.

This process is now unwinding and we have all seen the dramatic impact it has had on the financial and mortgage industries. But what does this all mean for you and I. It means more and more people will be renters.

The impact of going from 70% to 63% in the homeownership rate means about 23 million people will become renters versus home owners over the next decade. That is right - I said 23 million new renters.

The home building industry has already seen this trend and is shifting to building more apartments and condos versus houses. We also saw data this month that the average size of new homes is down 15% to about 2300 sq. ft. versus 2600 sq. ft.

This is very good for people catering to the rental market and has huge implications if you want to buy real estate for renters and hold for long term wealth. Landlords and property managers will be on the right side of the market for a generation or longer. This is very bullish for rental real estate once some of the current dust settles.

For more information on our upcoming FREE Tele-seminar titled Property Management Secrets for Real Estate Investors please go to
http://www.realestatewealthtoday.com/PMS-Signup1.html

Inspirational Video to start weekend off....

Michel Lautensack (Del Val Property Management LLC) — Sat, 08 Aug 2009 06:45:31 -0500

Just wanted to shoot you the link to this 1 minute video
I found on Youtube today... great way to start the weekend and might inspire you.

To view go to http://www.youtube.com/watch?v=RmTxr7OsPj0

Short but inspirational...

Also do not forget to sigh up for our Tuesday Night Teleconference Tips where we do free 1/2 training calls every Tuesday evening at 8:00 eastern and all calls are free.

Go to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Have a great weekend

Mike

http://www.private-lending-secrets.com/

New Meet-up Group - Property Management for Philadelphia Real Estate Investors

Michel Lautensack (Del Val Property Management LLC) — Sat, 01 Aug 2009 15:29:01 -0500

Welcome to the Property Management for Philadelphia Real Estate Investors (“PMPREI”).

The PMPREI is a new group of local Philadelphia based property owners who want to learn state of the art "best practice" property management for their real estate investments. Through this knowledge and education PMPREI members are achieving hassle free management of their properties and improving cash flow and long term wealth.

We will teach a wide variety of topics related to property management including how market for tenants, lease issues, security deposit issues, tenant relationships and many other topics to allow you to improve your property management skills. We also have special guests come and speak at meetings to enhance your learning experience.

We also welcome input from members on upcoming meetings and topics. Meetings are fun and casual and we encourage networking and questions during meetings.

Please come join us at our next meeting September 14, 2009.

If you want to join us please go to http://www.meetup.com/Property-Management-for-Real-Estate-Investors-Philadelphia/calendar/10989878/

Lease / Rental Agreements: Discover the 5 key elements of an “Owner Friendly Lease” versus a store bought lease.

Our September meeting will focus in the single most important document you will sign as a landlord – the lease. We will discuss what a lease should include and how to enforce your lease to improve cash flow and avoid future headaches.

The meeting will be at 7:30 PM on September 14, 2009 at the Homewood Suites in Malvern, Pa.

We will discuss…

• The key lease terms and conditions every owner needs to include in their lease to protect them and not the tenant
• Learn who should sign the lease and avoid making big mistakes down the road
• Pets or no pets?
• What addendums do you need to comply with landlord/tenant regulations and protect you from future lawsuits
• How to enforce your lease and understand the law better than your tenants so they can bully you

If you want to join us please go to http://www.meetup.com/Property-Management-for-Real-Estate-Investors-Philadelphia/calendar/10989878/

Thanks

Mike

New Meet-up Group - Property Management for Philadelphia Real Estate Investors

Michel Lautensack (Del Val Property Management LLC) — Sat, 01 Aug 2009 15:24:19 -0500

If you want to join us please go to http://www.meetup.com/Property-Management-for-Real-Estate-Investors-Philadelphia/calendar/10989878/

Lease / Rental Agreements: Discover the 5 key elements of an “Owner Friendly Lease” versus a store bought lease.

The meeting will be at 7:30 PM on September 14, 2009 at the Homewood Suites in Malvern, Pa.

We will discuss…

If you want to join us please go to http://www.meetup.com/Property-Management-for-Real-Estate-Investors-Philadelphia/calendar/10989878/

Thanks

Mike

Discover How to Find High Net Worth Investors For Your Private Lending Program

Michel Lautensack (Del Val Property Management LLC) — Sat, 01 Aug 2009 15:15:34 -0500

The key for real estate investors to finding high net worth (HNW) private lenders is first the marketing image and then a consistency of purpose.

Marketing Image

It's essential to know that most affluent potential investors are NOT attracted to the typical private lending marketing. I receive loan requests all the time from friends, investors and others and most are very ordinary and uninteresting. Very few seem interested in getting to know me or my investment needs.

Affluent investors are not going to respond to the same marketing you use for middle-class mom & pop investors. It takes a unique marketing edge to attract HNW investors.

We all have association links in our brain. Those associations will cue us to make snap judgments based on past experiences.

Take the affluent investor...

Most of their advisers use the personal approach in selling services to them. Have you ever seen the business card of an investment banker or wealth adviser? Was it riddled with "Earn 12% Interest.." and their entire pitch front & back?

Was it printed on bright green card stock?

So do you think the wealthy investor will give much credibility to your fluorescent business card that's printed with 400 words?

Be sure to have quality marketing materials that show you in a professional light.

Consistency of Purpose

It is very important that when marketing to HNW people that you have a consistency of purpose and stay with your marketing. If you plan to send one or two marketing pieces to a HNW with no further follow up you might as well not do any and save some money. You need to have 7 to 15 steps in your marketing plan to HNW.

They will almost never respond to the first couple marketing pieces. These type people are busy and need to see your message on a repeated basis. You should plan repeated marketing step over at least one year period with many different types of marketing including post cards and letters.

But is very important that at some point your marketing tries to get a one on one personal meeting with the HNW person and that is where the real deal will be made.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

Real Estate Investors - Learn How to Avoid Hard Money Lenders and Discover Private Money Sources

Michel Lautensack (Del Val Property Management LLC) — Wed, 22 Jul 2009 20:56:15 -0500

One of my coaching students recent asked me how to raise money for real estate deals since she was having NO luck raising money through hard money lenders. In fact, she had just paid some "guru" $25,000 to take a course and the whole course was about how to raise hard money.

Once she and many of the other students in the Guru's class start talking they discover that no one was having any luck raising money with money hard lenders. They quickly learn that most hard lender money are out of business. The few that remain have such high lending requirements that the deals made no sense when you have to put up 50% of the proceeds, sign personally, put up cash reserves and pay interests north of 25%.

She was very confused and upset to pay this kind of money to get information that was grossly outdated and useless in today's world.

I quickly explained that the answer of how to raise money for real estate deals today is to use "private money" not hard money. The difference is with private lending you are dealing directly one-on-one with a private person who may want to invest in your business. You are not dealing with banks or hard money lenders who have no money in today's post financial crises.

Private lending is a consistent source of money to purchase discount real estate deals that you can go back to again and again and again. The more you use private money lenders, the more money that will become available as you as you develop that relationship.

It is important that real estate investors understand that for the next several years you will need to use and develop a private lending program as other sources of money will dry up and be very difficult to get.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html