| Oh boy! Now we are on a hot topic. Who runs the | | | | be secured by Real Estate. They will love that |
| financial world besides who we would consider the | | | | because most people have their money sitting in banks |
| 3%-ers? Everyone knows that 3% of the population | | | | and in non-performing investments, losing to inflation |
| earns 97% of the income available to make. Why? | | | | and taxes. Show them that there is a better way. We |
| Because they are doers. Understand, however, that | | | | are going to call these people LENDERS. |
| they don't run as much as we think they do. THE BIG | | | | 2. Set up Your Private Money Division |
| THREE are: 1. the Government 2. the Banks 3. the | | | | Our title attorney calls this the Loan LLC. You can set |
| Insurance industry | | | | up an LLC specifically to handle the private money |
| My job as an investor, in this market or any market for | | | | transactions of the lenders you solicited above. The |
| that matter, is to figure out how to be a part of THE | | | | attorney will also be able to set up the paperwork, |
| BIG THREE. I think it is a process of elimination. How | | | | notes, options, terms, and any other specifics to your |
| likely is it that the average real estate investor | | | | private money needs. You tell them what you want, |
| becomes a government official or at least puts | | | | pay, and they will take care of the rest. The idea here |
| themselves in a position to write policy? Not very. How | | | | is that when you solicit private funds, you never touch |
| likely is it that the average real estate investor starts | | | | the money personally. It always goes into title/escrow |
| an insurance agency or franchises an Allstate office | | | | and it is disbursed according to the terms of the deal. |
| like my uncle did back in Maryland? Again not likely. | | | | Now you are ready to roll. |
| Drum Roll Please................. | | | | 3. Too Hot for TV |
| By process of elimination the only position available in | | | | Everybody knows an investor who needs hard |
| THE BIG THREE is to be a bank. Why is it likely? | | | | money. EVERYBODY knows an investor that needs |
| Because, if you are an active real estate investor, you | | | | hard money. Well guess who is a hard money lender |
| have access to masses of cash and credit from your | | | | now? You that's who. Use the private monies you |
| private investors, your credit partners, and your | | | | borrow at 9% and loan at 5 points and 12-14% for 6 |
| colleagues. Believe it! You can be the bank. No more | | | | month terms. Turn the private funds 3 times in 24 |
| sulking about the points you pay on this loan and that | | | | months and watch your pockets get FATTER!! If I'm |
| loan. All you need to do is put yourself in position to do | | | | lying...I'm flying. Now you are the bank and you control |
| the same things the banks do and it is all perfectly | | | | your own income. Analyze the deals as if it were your |
| legal. | | | | own and if it makes sense loan on it and collect. |
| 1. Line up Your Private Money | | | | As you can see the Lender loans to you and your |
| If you are not actively soliciting private money and you | | | | Loan LLC lends to the borrower. What great things |
| call yourself a real estate investor, HA. | | | | you can accomplish as a professional middle man. If |
| You have to have private money to fund the deals | | | | you turn more you make more. It is plain and simple. |
| you want to hold. Why would you use your own | | | | The hard money division of your real estate |
| money or credit when you can use someone else's. | | | | investment business is NOW OPEN. You can thank |
| Send out solicitations to your friends, co-workers, and | | | | me later or sign up for "the what and the how" real |
| family. They call that the Warm List. You will be | | | | estate investing program in Dallas, Texas where I |
| surprised about who will be interested in what you | | | | teach all of these strategies for creating wealth. So, I |
| have to offer. Just let everyone know that you can | | | | encourage you to take action on this one my fellow |
| give them a return between 9% and 12% on their | | | | investors. |
| private monetary investments and all of the funds will | | | | |