Conversations with Lenders


It is the quality of lending over the quantity of lending.

Lewis Thompson Preston

You hear that  “It’s hard to get a loan nowadays.”

That’s true.

We the taxpayers footed the bill for the bailouts, but now you need at least 24 months of perfect credit to get a loan.

What are we to do?

You could (and should) apply for a regular mortgage sometimes referred as conventional or conforming, possibly the loan officer squeeze you into a program.

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If this is not possible, you end up getting your feelings hurt when you get your hopes up, only to be denied, for many reasons.

But in comes a Private Lender/Investor, courtesy of yours truly..with my recommendation of course.

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These investors may have their money in IRA’s, Mutual Funds, Liquid cash in an account and ready to write a check for your loan!

How do you get them to do this?

The answer is not black/white, there are no guidelines that you can refer back to..you actually learn their investing style and risk tolerance as you go..which requires lots of conversation and going over deal scenarios.

They make comments like:

“Greg, I want to make loans to people with lots of experience.”

I respond, “Right, this (person) has experience, but wants 100% financing.”

The respond back with, “Greg, this is fine, but they should have some money in their account…especially if you say they have experience..they should have made some money in their ventures..right?”

I had to think about this, but not knowing how long I had paused on the phone, I stumbled and said, “Right! If they did not make money in their deals, that wouldn’t be good.”

So of course that was the end of that conversation!

I quickly changed the subject to something more profitable.

So I have these conversations with borrowers who tell me in detail about the deals they were doing before 2007…

This doesn’t matter to the investors. They don’t care about old success. You know the saying: “You’re only as good as your last deal” So having recent successes where you made money and can show documented through the HUD etc.

These guys are serious..they are investing (and risking) their retirement nest eggs. If they don’t know you and you are experienced, through my recommendation you will have the chance to present your opportunities to these people, and build your own relationships with them, gradually they will relax on terms.

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If you’re like many guys getting back into the game, this is fine, you need some recent experience, and to get that, you’ll need to bring 10-20% to contribute to your deal..but this shows good faith!

Serious Flippers should contact me, I’m working on new capital sources daily, if you need a credit line for flipping, and you have some cash and properties in your portfolios, lets talk about being creative!

Reply below.

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