(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.)
A big, important piece in the game of “Courting Private Lenders to Partner-Up with You in Your Deals” is adequately answering their questions. And trust me – they’ll have lots of questions for you.
Bearing this in mind, one of the standard lender questions I hear my fellow real estate investors frequently nervous about answering is, “What if things go wrong? What happens to my money if your deal goes south?”
It’s actually a very good question, isn’t it? Anyone with half a cent in their noggin would ask you this, so it’s absolutely essential you know how to answer it, and it is imperative to do so in a way that’s both (i) honest, forthcoming and accurate, and (ii) makes them safe, secure and generally warm and fuzzy about you and your proposition.
So here’s how I do it, and what I recommend for you too.
Not If, But When…
First off, at what point exactly are you trying to answer this question for them?
It’s important for you to understand that timing matters.…
Patrick Riddle
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.