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Getting private lenders for real estate investments is a great way to avoid using your own money. In this video, I answer a common question: What do you do when you start borrowing money to invest?
First, take a deep breath. Know that by following these steps, you can close the deal successfully.
Second, connect with your closing agent. You need the title company name, address, wiring information, and the closing date. Also ask the closing agent for any additional paperwork that may be required for private lending.
Then, work with your private lender to expedite the process. Where are their funds coming from? This is important because when borrowing money to invest, certain sources take longer to access than others.
Fourth, provide funding instructions. When you get private lenders for real estate investments, they need to know how to send the money. They can wire the funds to the title company or to the closing agent, but do not allow them to wire it directly to you.
Next, get your private lender’s information. It’s best that they consult their CPA first because there are implications depending on whether they lend personally, or via their business.
Step six is to stay involved in the transaction until it’s closed. Nobody gets paid until the deal is finished, so make sure that you’re on top of the status of the deal.
Last, make sure you honor your word. Do everything that you said you would to make this deal work. By making the lender happy, you’ll be more likely to receive future funds from them and their contacts.
It can be overwhelming to finally get private lenders for real estate investments. When you know what to expect when borrowing money to invest, the process becomes a whole lot easier.
First, take a deep breath. Know that by following these steps, you can close the deal successfully.
Second, connect with your closing agent. You need the title company name, address, wiring information, and the closing date. Also ask the closing agent for any additional paperwork that may be required for private lending.
Then, work with your private lender to expedite the process. Where are their funds coming from? This is important because when borrowing money to invest, certain sources take longer to access than others.
Fourth, provide funding instructions. When you get private lenders for real estate investments, they need to know how to send the money. They can wire the funds to the title company or to the closing agent, but do not allow them to wire it directly to you.
Next, get your private lender’s information. It’s best that they consult their CPA first because there are implications depending on whether they lend personally, or via their business.
Step six is to stay involved in the transaction until it’s closed. Nobody gets paid until the deal is finished, so make sure that you’re on top of the status of the deal.
Last, make sure you honor your word. Do everything that you said you would to make this deal work. By making the lender happy, you’ll be more likely to receive future funds from them and their contacts.
It can be overwhelming to finally get private lenders for real estate investments. When you know what to expect when borrowing money to invest, the process becomes a whole lot easier.