How To Grow Your Real Estate Business Using Private Money

By
Mortgage and Lending with Level 4 Funding NMLS 1018071 AZMB 0923961

Have you ever wondered how to grow your real estate business in the most efficient way possible? Are you confident you have considered every avenue to do so? At the very least, there are countless ways to expand your own company, but I digress. Learning how to grow your real estate business may be easier than you think. Better yet, doing so may have less to do with what you know, and more to do with who you know.

Real estate is a people business; it always has been and always will be. As such, you could argue that the relationships you develop over the course of your career are far and away the most valuable assets you must learn how to grow your real estate business. Everyone forms the contractors you work with to the lawyers that help you draft critical documents has their place, and it is probably a valuable one at that. It is worth noting, however, that there is one relationship you might want to consider prioritizing over all others: the one you share with your private money lenders. If for nothing else, private money lenders not only serve as your access to capital but also a great means of financing business growth. It is entirely possible to grow your real estate business with their help, and it is about time more investors realized that.

How To Grow Your Real Estate Business With Private Money

Make no mistake about it, private money lenders are investors looking to make profits off somebody else. However, their cooperation with real estate investors has essentially changed today’s financial landscape. A private money lender is an investor who makes loans secured by real estate. While they may serve the same purpose as a traditional lending institution – think government loans and big banks – there are several key differences: private money lenders typically charge higher rates than banks but will also make loans that the average bank would usually pass on. It is important to note the difference between the two. While banks and similar lenders may offer the most attractive rates, they do not provide the same combination of speed and transparency in the decision-making process. For these reasons alone, private money is essential to growing your real estate business.

The average real estate investor relies on a steady flow of private money to supplement their respective deals.  Not only are institutional loans lengthy and cumbersome, but they can also impede the progress of a residential redeveloper.  Conversely, private money can afford investors the ability to grow their business at a steady pace.

If you are interested in using or becoming a private money lender, check out part one of our series: A Guide For Private Money Lenders.  It will give you a basic breakdown of what it means to be a private lender while also explaining the anatomy of a private loan.  Learn how to properly identify borrowers, choose profitable investments, and more.  If you are more familiar with private lending, you will enjoy part four of our series: A Guide For Private Money Lenders: Private Vs. Hard Money.  There you will find an in-depth analysis of the difference between private and hard money so that you can better determine what will be more beneficial to you and your business.  Master what it takes to get the attention and respect from these types of investors to maintain a sustainable real estate business.

For a visual representation of how to grow your real estate business with the help of private money, reference the infographic below:

 

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel: 623-582-4444
Level4Funding.com

Private Hard Money Lender
Dennis@Level4Funding.com

 

Who is this Dude? Dennis brings with him substantial experience in residential real estate. Dennis has extensive experience purchasing, renting, and selling numerous homes over the past 45 years. His first purchase was a property in California when he was 18 years old.   Dennis graduated from California State University Pomona with majors in Computer Science and Business Management. He is a Licensed Mortgage Broker, Licensed Mortgage Originator, Licensed Real Estate Agent, Licensed Insurance Agent Certified Sort Sales Specialist (CSS), Certified Negotiator (CNE), and FAA Licensed Private Pilot.  

Funding LLC is acting as Mortgage Brokers. These are short-term loans 3-60 months. You are not required to pay any upfront fees. However, some programs may require you to pay for an appraisal or BPO. Appraisals/BPO are handled by a non-affiliated 3rd party and all fees and costs are collected by the 3rd party not by us at Level 4 Funding LLC. For the lowest possible rate, typically the borrower will have§ LTV of 55% or less, a Tri-Merged FICO Credit score of 7 40 or better. APR for loans vary from 5.99 - 29.5% and is determined after evaluating: 1. Property location, 2. Loan to Value (LTV) based on adown payment or equity, 3. Credit Score (FICO), 4. Ability to repay, and DSR (Debt Service Ratio, 5. Your capabilities/experience and 6. Site Inspection and title report To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts Terms and conditions of all loan programs are subject to change without notice. Level 4 Funding LLC, 9133 W Plum Road, Peoria AZ 85383 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the exclusive use of the intended recipients and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the e-mail from your computer and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege Neither this e¬mail nor any attachments establish a client relationship, constitute an electronic signature, or provide consent to contract electronically, unless expressly so stated by Dennis Dahlberg RI/CEO, Level 4 Funding LLC, in the body of this e-mail or an attachment. To the extent, this message includes any tax or legal advice this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice

Comments (1)

Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is such a great post! Thanks for sharing!

Mar 16, 2021 07:48 AM