Home > Blogs > Harry F. D'Elia III > PHOENIX REAL ESTATE MARKET ONE STOP SHOP

TOP 10 REASONS FOR USING PRIVATE MONEY IN REAL ESTATE

By Harry F. D'Elia III

Real Estate Agent with WEDO Real Estate and Beyond, LLC SA535849000

November 27, 2010 01:46 AM

ARIZONA FORECLOSURES I work mainly with investors who want great deals and want to invest the minimum in order to reserve their cash for more deals. So, I have been able to develop relationships with private individuals that will loan thier money out to other investors at a normal 18% short term bridge loan in order to get a better return on their money. The private lender is in first lien position on the property. It has been working out quite nicely in my business.

TOP 10 REASONS FOR USING PRIVATE MONEY IN REAL ESTATE:

Receive a discount on the property since one is closing faster
No credit check
Ample funds
Cash flow
Obtain money for repairs
Flexible terms
Develop key relationships
Creative methods when structuring the deal
Several exit strategies
Higher return on one's money 18% or more

Does anybody esle use private money in their real estate business? Tell us your success stories

Re-Blog

Comments(7)

Comment

Show All Comments

Sort:

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

I have not been involved in too many private money transactions, but those reasons sure do make sense to me.

Nov 27, 2010 01:50 AM

Stanley Stepak

Howard Hanna - Avon Lake, OH - Avon Lake, OH

Realtor - Avon Lake, Avon, Bay Village, Westlake,

interesting points to consider. I will share them with my colleague's. Here is to your efforts as we reach closer to the end of the year.

Nov 27, 2010 01:52 AM

Nor Yeretsian

Envoy Capitol Realty Inc. - Toronto, ON

Envoy Capitol Realty Inc., Brokerage Toronto

Harry , interesting post.

18 % sounds wonderful , too good to be true ( maybe ) recourse or no recourse ? .

Cheers

Nov 27, 2010 01:53 AM

Harry F. D'Elia III

WEDO Real Estate and Beyond, LLC - Phoenix, AZ

Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Private money and distressed properties are a great combination to make money when done right.

No 18% all day long in Phoenix, AZ

Nov 27, 2010 01:58 AM

Bill Pohl

Tetra Homes, Inc. - Loveland, OH

Harry-

We use private mortgage money for most of our transactions now. Of course, the rates we pay are slightly lower in the 12% to 15% range most of the time. We also (50/50) use funds that are in people's SDIRA. Greater combination: Distressed property, Private Mortgages, IRA Funding!!

Nov 27, 2010 02:38 AM

Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

Harry....when I use to invest in property, I always used someone elses money....I would buy it with no money down and refinance to pay off the second mortgage that was used as my down payment....when I refinanced I pulled out money to make improvements.

Nov 27, 2010 02:42 AM

TOP 10 REASONS FOR USING PRIVATE MONEY IN REAL ESTATE

Comments(7)

Harry F. D'Elia III

Service Areas

Recent Posts

Additional Information