Guest Blogger Alan Cowgill: Why Private Money Rocks
Alan Cowgill is a 20 year veteran of the real estate investing business and perhaps the most widely known expert in the U.S. on the topic of raising private money. He’s also one of 13 featured speakers at this years National Real Estate Summit sponsored by OREIA. You can register for that now at a super-earlybird price at www.OREIAConvention.com
This topic is near and dear to my heart. When I started my RE career, I heard about the necessity of finding private lenders. In fact I even found two. But then I stopped. For four years I PROCRASTINATED. I didn’t get it!!! For four years I continued to go to banks and jump through their hoops. I also had used hard money lenders, but found them VERY expensive.
It wasn’t until I quit my J.O.B. and found that banks wouldn’t loan me money that I realized that I needed to bring private lenders into my life quickly.
When I took that step, everything changed for the better.
What are some of the advantages of using private money for your real estate investments? Well, if you haven’t decided whether or not to use private money, I decided to lay it on the line here for everyone to see.
- You can get money fast & you can buy at a discount
- No credit check & doesn’t show up on your credit report
- Unlimited funds
- Control because you set the rules
- Help your friends, family & associate. Meet a great group of people
- Get some of your profit when you buy
- Cash flow
- Very flexible;
Example: Do you want to do monthly payments simple interest or monthly payments & amortize or no payments and will pay in full when property sells.
- Can make offers with confidence because money is a phone call away
- Can structure quick and more profitable exit strategies
- Saves you money
- Cheaper than a partner
- Fund the purchase of defaulted paper
- It is the foundation for a very profitable brokerage business
In this business when a deal comes along you have to move fast. Many investors have watched a deal slip through their hands while they waited for the bank to approve their loan. Once you have private money available, that won’t happen to you! You can make an offer knowing you can go ahead and set a closing date. Meanwhile, your competition is wondering how you did it so quickly!