If you go to a bank, chances are they will want tons of paperwork, pay stubs, tax returns, etc. It’s a lot of hassle. Eats up time.
Whereas, when you can move fast with all cash from private lenders, sellers will sell you their homes at a discount.
Let’s review 4 sources for your real estate funds. Look at the downsides:
Let’s face it some of us, buy some really nasty stuff! Beyond the trash and that horrible smell, some of the houses we buy don’t have roofs, or windows, or furnaces, or plumbing. We buy trash and turn it into cash. Banks don’t seem to understand that. I’ve actually had a bank refuse to loan me money on a house for 4-1/2 months because it didn’t have a furnace. Gee I thought the idea of being a rehabber was to buy an ugly stinky house and fix it.
Use private lenders and avoid all of these downsides!
With private money I buy what I want. I know how to rehab about anything. That’s my decision, not someone else’s. Today I am the approval committee.
One final note on building relationships…
I appreciate my lenders. I’ve met some great folks. These strong relationships built on trust make your business grow, not to mention make your life more enjoyable. Do you actually know anyone at your bank or are you just a number to them? There are some exceptions, of course. Actually, I loved my banker so much I married her.
The bottom line is that now you know the facts. Don’t PROCRASTINATE like I did. Go create wealth and live the life you want!
Alan Cowgill is a speaker, author, and real estate entrepreneur. Alan has bought or sold over 200 investment properties. Alan Cowgill is a regular guest speaker at CT REIA. Go here for the current list of upcoming real estate investing seminars in Connecticut.
© 2016 Connecticut Real Estate Investors Association. All rights reserved.