(NOTE: What it's like to write a $1,000,000 check for a sweet piece of undervalued real estate … even if your bank account is overdrawn and you owe the local lawn boy $20? This special report shows you step-by-step.)
We’ve got a great lesson today from someone on the inside. It’s kind of a thank you to our Mogul friends out there and a terrific announcement as well…
You guys have helped Mogul grow so awesomely (thanks!), that we have the pleasure of continuing to bring on new and super smart faculty members. We are thrilled to add another mogul advisor to our team, Jimmy Moncrief. He’ll be one of our regular contributors, focusing on the funding category. Hooray for us!
The Inside Man
Jimmy is a real estate investor, banker, commercial bank underwriter and credit officer. See what we mean by inside man?
Thanks to his vast breadth of experience, Jimmy has an uncanny ability to understand how to connect the dots between REI investors and tapping into investment funding. Because of his unique perspective, he knows how to avoid the common mistakes that most investors make, and how and why people do and don’t get loans.
And he’s not shy about telling people that he genuinely enjoys helping people get financing from lenders and investors. Nice guy and smart!
Change Your Position People
In Jimmy’s awesome video lesson, he doesn’t sugarcoat it, he tells it straight: A lot of what you hear about REI lending isn’t really true.
He says in order to get the best loans available, we’ve gotta change our way of thinking… we need to reverse the lending process and put ourselves in a position of strength by negotiating.
Most people do it the opposite way they should… and Jimmy tells us the wrong way and the right way to do it. He even shares with us exactly how to start the process using the right approach.
Jimmy explains how we can unknowingly give banks/lenders too much power. We should be interviewing them, not the other way around. “Hey bank, why should I choose your bank to do business with?”
In fact, Jimmy even has a list of prepared questions on his Lender Worksheet. As a special power pack tool for Mogul Elite members, Jimmy was cool enough to provide it as a free download. It will no doubt be a helpful aid when you’re talking, scratch that, interviewing a banker/lender.
So make sure you check out this video lesson from Jimmy. Listen for the tips he gives about how to ask the right questions so you can negotiate a better interest rate and then some…
Welcome Jimmy, and enjoy!
{Mogul Elite: Download a transcript and MP3 of this lesson – as well as Jimmy’s Lender Worksheet -- in the Power Pack tools for this lesson.}
Make A Contact List of 10 Area Lenders – Gather the information. Create a list of:2 small community banks, 2 small credit unions, 2 hard money lenders, 2 regional banks and 2 private lenders.
Know Who to Talk To - When you’re getting the contact information, ask for the commercial loan officer or business banker. Only ask for the real estate department if this is your full-time source of income. (If your loan requests are less than $1 mm, the real estate departments at large regional banks will not want to work with you.)
List Your Assets - Not the assets on your balance sheet and personal financial statement; this is a list of the main reasons
a bank should compete for your business. Examples include: deposit accounts, deal flow, organized, proven track record, and references and referrals to help the loan officer grow his or her loan book.
Go Meet ‘Em - Schedule appointments with the contacts on the list you created, and conduct a face-to-face interview. In-person meetings are much more effective for negotiating; make sure you bring Jimmy’s Lender Worksheet of questions.
Remember, It’s Not You, It’s Me - At the appointment, above all else, remember:
They need you, you don’t need them.
Jimmy Moncrief
is a bank credit officer and real estate investor. His blog is realestatefinancehq.com. His blog is about getting any kind of financing you want for your real estate investments. Previously, he was a partner at a hedge-fund and sold it to a private equity fund in early 2008.