So You Need Money For Real Estate Investments - Here is How to Use Private Lenders For Money!

If you have tried to get a traditional mortgage, or even a hard money loan, to finance your real estate investments you know how hard it is to get loans in today's post-credit bubble market. It is even harder to get "no money down" loans for your real estate investing business. If you are using traditional mortgage or hard money loans they can take two or three months to close. The problem you will quickly discover is that sellers are not willing to wait that long and get angry at having to continuously extend their contracts or wait for your loan approval.

Banks and mortgage lenders view mortgage loans to real estate investors as a higher risk than loans to home owners. They believe if the home owner is not living in the property and if trouble hits an investor will opt to pay their own home mortgage first and only pay for the investment loan if they can afford to make the payments. This puts the bank in a very poor position. As a result, most banks are looking for real estate investors to put up 30% to 50% down payment to protect their interest in time of trouble. VERY few investors have this kind of cash so it is very difficult or impossible to do deals with traditional mortgage or hard money loans.

Real estate investors still are not advised to use their own money to do their deals. Even if you have 30-50% saved for a down payment on your investment property, most real estate guru's warn, NEVER spend your own money on real estate investments. Most beginners start their investment career saving up for a down payment, but the fact is, serious real estate investors do not use their own money to do real estate deals.

So how do you buy real estate investments if it is so hard to get a loan and you do not want me to use my money to apply to a down payment?

Buying real estate without using your own money IS possible, and it's not difficult. With the right kind of deal, investment property can be purchased without a single penny of your own money.

Enter the world of Private Lenders... Private lenders are individuals with money to lend for investment purposes. They may or may not be wealthy, but they do have excess cash or assets available over and above what they need to live on. These individuals are willing to lend for a higher return than they can get with bank CD's or money markets. There are no limits on the number of private lenders you can have or the number of real estate deals you can do using private money.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here http://realestatewealthtoday.com/FREE-eBook.html


Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit.

6 Steps to Develop a Private Lending Program For Real Estate Investors

Wow, has the real estate market changed in 2009! Real estate investors have been shut out of traditional mortgage money unless you have a 9000 credit score and a 50 year work history without missing one day of work (ok enough of the weak humor but you get the idea). Even hard money loans are HARD to get as they have all gone out business.

But just as the mortgage market is shunning the real estate investor - we are starting to see signs that the real estate marketing is starting to bottom and home prices have even gone up in some markets.

So how do you take advantage of this buying opportunity if you can not get mortgage money from traditional sources?

Private lending is the answer. You can start borrowing money from private lenders to fund your real estate investments. Raising private money allows you to take advantage of the low prices without ever using any of your own cash or personal credit.

There are several significant benefits and advantages of private money lending compared to mortgage money or hard money lending.

First, you can begin buying more houses for "all cash" offers and drive significant discounts from sellers who are highly motivate to get cash versus waiting and hoping another buyer will get a mortgage approval.

Second, very simple paperwork with a typical private lender transaction only requires 3 or 4 documents with less than 20 pages.

Third, you control the terms and conditions under which you will borrow money and the lender will lend. You tell the lenders what rates of interest you will pay, how long the term is and all the other conditions are set by you not a bank or hard money lender.

Finally, you can turn many non-deals with no equity into super profitable deals with substantial equity by paying off existing debt at a discount... using private money.

Six Steps to develop a private money program for real estate investors:

1. Develop your private lending program and the terms and conditions under which you will borrow money and repay your lenders
2. Build your info/credibility kit to establish yourself as real estate investing expert
3. Create a marketing plan with 5 to 10 different marketing techniques to attract potential private lenders
4. Create your group or one-on-one presentation
5. Schedule group or one-on-one meetings and follow-up with potential lenders
6. Present and close deals with your potential lenders

Given the new market realities, private lending may be the only option if you want to buy and own real estate investments and take advantage of the low prices.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit

Discover How to Use Post-It Notes to Get Sellers Calling in Droves

As we talked about, post-it notes come in two sizes - large and small. They are different style templates. One is landscape and one is portrait, so you get a sample of both.

Importance of the Headline

The headline is "Attention Homeowner." It's got a big notice going the opposite way. Again, that's the FedEx and UPS concept. I don't have the word FedEx or UPS on here. We're not going to get in trouble with those organizations. If you look at this from afar I guarantee that's the first thing you're going to think that you've got a FedEx package.

The headline says, "Our Company is seeking to purchase several homes in your neighborhood..." That leads them on to read. "Are you looking to sell soon? Your home has been identified as a good candidate for our real estate buying needs.

Why the Seller Should Work With You

"When we become your buyer we can buy your house as-is for a fair price on the date of your choice. There are no commissions to pay. You'll get immediate debt relief. You'll get fast cash and a hassle free sale. You're putting your house on the market without fixing it up. We're professional home buyers. We're not listing with an agent. We can work with existing loans and we have private funds that require no bank financing. This allows us to offer you a quick and easy sale."

How to Get a Response

Then you are into the response mechanism. "If you would like to listen to a 24 hour recorded message, here's the number to call." Guys, the very first call we want is into pre-recorded voicemail, so you should have that. They can choose to go to my website and get a free special report, and that can talk about some of the special benefits. That's one of the post-it notes.

The other one is more of a bullet point style instead of paragraph style. It has "We buy houses fast, all cash, as is, if you need to sell quickly, behind on payments, facing foreclosure, divorce." It gives a series of bullet points and then, "You can get more details at..." and your phone number there and a website.

Printing

What you would do once you've picked a printer and have changed these around, you would upload these to your printer. Different printers have different ways, but there should be a way to upload these onto the printer site. Be sure you've proofed it and made sure it's right, fits, and all that.

Typically at some point they will ask you to initial a proof and then you would order your 20,000, 25,000, or 50,000 post-it notes. They'll come to you a few days later in a box with packets of 50 to 100 post-it notes per pack.

Once you've got them, you can start thinking about distribution. You don't have to distribute them all immediately. You can do them in segments. You can do 1,000 a week. Have one or two kids go out and distribute them at 1,000 per week.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog

Real Estate Investing and the Advantages of Private Money

With traditional mortgage and hard money lending getting tighter and tighter for most real estate investors - private lending is fast becoming the only option to finance your deals. 

What is private lending?  Private money is a type of creative financing that is usually provided by private individuals who have excess money that they are willing to lend at higher rates than they could get at banks or CD's.  Their investment is usually secured by the property you are buying and NOT by the borrower.  Unlike traditional mortgage lending, the terms and conditions will vary from one lender to another and they usually depend on the agreement between a you and the private lender.

Borrowing money from private money lenders is much easier compared to traditional banks and hard money lenders.  Because a borrower only needs the approval of a single person, he doesn’t have to deal with 4 inches of paper work and a 3 to 4 month approval process only to get reject after a long waiting period.  In addition, he doesn’t have to present lengthy documents and other credentials because private lenders are not interested with such things.  Private lenders first want to know the real estate investment makes economic sense first before they worry about other issues.

Because of such a scenario, real estate investors with poor credit scores can still borrow money from private lenders if they are prepared and the deal makes sense.  However, they must be able to show that their real estate investment makes sense and will generate enough rent to cover their interest payments and the property collateral is worth more than the loan amount.  Therefore, if an investor wants to borrow $125,000 from a private lender, he has to make sure that the collateralize property’s market value will hit the $175,000 with an appraisal once repaired and renovated.

One reason why many real estate investors prefer private money over looking for a business partner who will finance a project is that they can earn bigger profits.  Most private lenders ask for interest rates of 8% to 15% range while business partners are likely to demand a larger portion of the profits when you sell a property.

The key to getting private money is to be prepared and have a well thought out business plan and credibility kit.  Without these two items in place it is hard to image a successful business person giving you money if you do not impress the person with your well thought out business plan.  Take your time and be prepared to answer all the questions about the property such as what are the value of comps, what are rents in the area and what are the cost to fix up the property.  Also spend some time to develop your credibility kit to show your experience and knowledge as a real estate investor.

 

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit .

50 Low or No Cost Marketing Ideas for Today’s Real Estate Investor Using Social Media!

Please join me Tuesday evening November 17, 2009 for a FREE teleconference at 8:00 PM EST and learn “50 Low or No Cost Marketing Ideas for Today’s Real Estate Investor Using Social Media!”

To sign up please go to Tuesday Night Teleconference Tips

Hope to see you there

Mike Lautensack
http://www.learnrealestateinvestingblog.com/

Real Estate Investors - How to Sell Your Property Before You Buy the Property - Build a Buyer List!

With your real estate investment business what is at the top of your "frustration" list?

Could it be trying to determine if a certain property is a good deal not? Trying to determine if your offer prices is "low" enough for you to make a profit in this market place.

For most real estate investors, this dilemma causes a lot of confusion and frustration. This is may be because your definition of a "good deal" may be skewed.

What makes a property a good deal? The answer is: one that has a ready buyer at a profit.

As long as you have a buyer ready and willing to buy that property and there is room for your profit, then you have a good deal on your hands. You can actual predict what your profit will be with the knowledge of the buy and sale price.

For example, if you know you have a property under contract for $120k and you can have a ready buyer lined up to buy from you at $130k you have a $10k profit locked in.

But the obvious question is how do you get a ready buyer?

You do this by building and maintaining a "buyer list". Building a list of ready buyers is the key. If there is a buyer from your list of buyers, who is in the market for the property you are looking at - then voila you have a good deal!

The way to build your buyers list is through aggressive marketing and here are 5 simple ways to start your list:

1. Post an ad on Craig's List, Backpage.com and other local internet bulletin boards with ads like "I sell ugly houses" or"Fixer Homes Avaialble". Do this once per week and be sure to capture everyones email address for future follow up.
2. Write down the phone number when you see "I Buy Houses" signs, ads, and websites. Call these investors and get their info, and let them know you're an investor and would like to bring them properties that are available. Add them to your list, and don't forget to get their e-mail address for when you automate!
3. Hand out at least 24 business cards at REIA meetings and be sure to go to as many REIA meetings as possible. If you not sure about where meeting are go to Meetup.com and search your local area for real estate investors.
4. Talk to everyone and tell them what you do and ask them to spread the words to their friends, family and coworkers.
5. Advertise in small local newspapers that you have "Fixer" homes available for sale and provided a phone number and email address.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog .

Real Estate Investing - Learn How to Make Money in Real Estate Without Cash

It is a widely held belief that if someone wants to invest in real estate market, he must be loaded with cash. The idea is not entirely true. If you don't have enough money you can still invest in real estate. The notion seems unbelievable at first glance but it's true. Real estate investing with no money to put down is a viable option.

In order to invest in real state without down money, you must be creative in your approach and devise various methods for utilizing other people's money to finance your transactions. Some of those innovative methods are listed below:

Use Double escrow

If you have a finance background, you must have heard of the escrow account. There is such a term as double escrow. Double escrow means buying and selling property at almost the same time. The money received from sale is utilized to pay the purchase price of the property. The sale price is a bit higher then the purchase price which is your profit. In a double escrow, profit is realizable only after both part of the transaction are simultaneously completed. Before going into this kind of transaction you must first secure both ends of the deal or you might end up in a jam.

Use seller's financing

Usually a property owner already has one or other lending facility. What you have to do is convince him that you are going to take over his mortgage for a specified period of time until you can find a suitable buyer for the property. When the property is sold, the sale proceeds of the property can be used to pay off the mortgage. The difference amount is your profit.

Mortgage Take Over

There is a paragraph in virtually all loan agreements which is called "due-on-sale" clause. This clause stipulates that when the title of a property is transferred, the lender has the right to demand full settlement of his loan. According to this clause it is the lender's prerogative whether or not to demand full settlement of loan. If you take over a mortgaged property and make timely payments there is every chance that the lender will not exercise his right of "due-on sale". This way you can buy properties without having to go through a credit check. The properties can later be sold to prospective buyers.

You might be discouraged in the beginning when you go and try out any of the above mentioned options. But there are great opportunities of making money in the real estate market without down money. The key is to build a workable real estate investing strategy and not get discouraged by early failures.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to
Real Estate Investing Blog.

Residential Property Management: Tips on How to Find Renters Using Newspaper Advertising

Importance of Headlines

Particularly with newspapers you don’t have a lot of space and it’s expensive, so you’re going to have maybe a headline, one or two bullet points, and then a phone number or website. You don’t have a lot of space so you’ve got to make sure that you do it the right way. Your headline has to be appealing.

Let’s use Louisville as an example. You don’t need to put Louisville in your headline. Everybody knows it’s a Louisville newspaper. You’ve wasted your space. We see that mistake a lot.

Putting irrelevant words in your headlines doesn’t mean too much. Make sure your headlines have relevant words. If it’s a particular neighborhood or section of town, if it’s a well-known area, make sure you put that in there, but not the town.

Be Concise

Be very concise. If you can drive them to your voice mail system or your website, that’s the best way to do it. They would go there and find out if they have some interest. They would see some photos or the video and would kind of screen themselves out and save you a lot of time.

Be Careful of Fair Housing

One thing you’ve got to be careful of is violation of Fair Housing when you advertise. Remember people are going to look at your ad and claim somehow that you’re being in violation of Fair Housing rules. This is a whole subject by itself. We can spend a whole night talking about this. You have to be careful about the words you use.

You can’t use words like church – even if it’s right next to the biggest church in town, or directly across from the biggest church in town. You can’t mention that church. That is a violation.

You can’t mention any sort of family – “It’s a family neighborhood.” If you say the words “family neighborhood” in theory you might be implying that single people aren’t welcome so you’ve got to be careful.
Or vice versa, if you use “apartment designed for singles,” it might be construed as excluding families. Be careful about the words you use. Think about them a little bit.

One of the things I’m going to do on the checklist you’re going to get from me is there are a lot of things in there in terms of words to use and then alternative words to use, particularly if you want to write an ad and you want to use the word fantastic three times.

It will give you fantastic and then give you two or three alternative words to use to try and mix up your words. My template ads are on that checklist. You’re going to get those as part of this program.

Be careful of Fair Housing. If you want HUD offers, in most areas a one day course doesn’t cost much, say $25, where you can take a Fair Housing course. You can learn all about the rules and regulations of Fair Housing. If you’re a serious property management I would do that. Go and spend a Saturday or whatever day they offer that course, take it and learn those rules and regulations and keep yourself out of hot water.

I invite you to learn more about Property Management and get a free 60 minute audio titled “Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Maximum Profit and Avoiding Tenant Headaches” by going to http://www.realestatewealthtoday.com/PMS.html.
 
Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.

Learn How to Collect Rent and Deal With the Eviction Process Without Attorneys

Collecting rent is one of those situations where I have to use some rules of thumb, some feeling, some gut to try to figure out whether it's time to go and do the eviction or do we try to work with the tenant and see if they can get caught up. Maybe it's a temporary problem. We can do a weekly or monthly payment plan and maybe we can get them back on paying again.

In the same token, if I don't feel it's going to happen, we have to go to eviction quickly. There's no point in waiting and spending two or three months waiting around for something that's not going to happen. That takes some gut feel and experience.

Know the Rules for Eviction

We'll talk about the eviction process. There again, just like the rules and regulations, you've got to be smarter than your tenants. You've got to know the rules better than they do, because if you don't, I guarantee you they will take advantage of you. They will tell you things that are not accurate and if you buy into it you're going to end up being their whipping post.

Now every state might be slightly different and I recommend you go to Google and search for your sate and landlord regulations and study them front to back. Knowing the rules and then enforcing them is the single most important thing in terms of collecting rent.

Should you use an attorney for evictions? You guys can do it better than an attorney can. They will do almost nothing for you except the fact that they're attorneys and they'll charge you $250-300 an hour.

I can probably out perform any attorney in this area and I can do it for $50 an hour for my clients, probably one sixth of what they'll pay an attorney.

How to Retain Tenants

How to work with tenants and try to encourage them to stay tenants, making sure that you're resolving issues with them in a friendly and professional way so they say, "Hey, yeah, I want to stay another year, two years, three years whatever."

If you are late with doing maintenance, you drag your feet, you try to find excuses why not to do it every time they call you, you don't return their calls, they got a little drip here and there, you don't fix it, do you think they're going to stay that second year after that lease runs out? I don't think so.

Again, you want to keep at it. You want to work within trying to keep the tenants as long as possible. Also, we have little things in our lease that encourage tenants to sign a new one-year lease. They can go month-to-month but there are some penalties - I wouldn't call it that - but just some things in that lease that make it more onerous on them as opposed to coming back to me and saying, "I'd rather have a new one-year lease than go month-to-month."

We probably have 75 to 80% of our tenants come back to us for a new one-year lease as opposed to remaining month-to-month. It's hard for you as landlords and owners to manage if you don't know beyond 30 days whether your tenant's staying or going. It's much nicer to have a one-year lease and you know that for the next 12 months at least you're going to get rent, so we'll talk about that.

I invite you to learn more about Property Management and get a free audio titled "Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches" by going to http://www.realestatewealthtoday.com/PMS.html

Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.

The Advantages of Professional Property Management Vs “Mom and Pop Management”

One of the things we’re going to focus on is what is professional management versus mom and pop management. Now many of you may have a couple properties. Maybe you’ve read a book on property management, I don’t know, but if you ultimately want to make a business and to grow wealth and to be a serious real estate investor, you need to become a professional property manager.

That is you’re better at it than most people. You’re better at it than nine out of 10 investors. You take it seriously because you’re investing a lot of your own money in these properties, a lot of your time and a lot of your energy, and you want to get the most you can out of it.

That’s where the money is, because if you don’t manage it properly, the value of that asset declines rapidly. I guarantee you, if you’ve bought a property, put a bad tenant in there and they destroyed your property, you’re looking at $5,000, $10,000, $15,000 of damage. Not that property management can totally eliminate that possibility, but certainly professional management versus mom and pop management makes a huge difference.

Advantages of Property Management

We’re going to go through that and understand that process. We’re going to go through the advantages of property management. Why is it worth you getting on this call for two hours for a series of four calls? What are the monetary advantages of doing it? Are there monetary advantages to it? Why not just read a $12 book?

Sure, you can do that, but everybody knows reading a book is a hard way to learn. It’s not interactive. You won’t have the ability to fire questions at me. Maybe you’re pretty good at property management and you have a couple areas you’re weak at. You won’t have the ability to fire questions at me.

Again, filling a rental. Let’s say we had a $900 a month rental. Filling it 30 days earlier than you would otherwise puts $900 in your pocket. So the monetary issues here are tremendous. Keeping a tenant a second year as opposed to losing them because you didn’t treat them right or you didn’t fix the property right or whatever, reselling a vacancy is tremendously expensive.

You could be looking at two months vacancy, $900 per month, and costs you have to pay to maybe carpet in between tenants, so maintaining a tenant is again a huge monetary issue. So there are clearly some monetary issues here that can be quite overwhelming in terms of cost savings.

We’re going to talk about the importance of education, these kinds of calls tonight, the importance of doing it on a continuous basis, meaning joining your real estate clubs, looking for other resources, maybe join my coaching program at some point down the road, but continue to educate yourself further and more completely as time goes by.

Again, a professional real estate investor continues the education process and never stops. A mom and pop learns a couple things and then stops. We’re going to talk about the difference between the two. How to do things like develop contacts and network, how to work with contractors.

I invite you to learn more about Property Management and get a free audio titled “Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches” by going to http://www.realestatewealthtoday.com/PMS.html

Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.

The 6 Steps to Developing Your Own Private Lending Program

What do you think your real estate investing business would be like if you had unlimited access to money for profitable deals? Imagine finding a great deal and be able to call up a private lender and outlining the deal and after some discussion the person yes how much money do you need and where can I send the check? Do you think you could get some price discounts from sellers when you knew you could close and close quickly? How would that affect your lifestyle?

This is possible for you if you committee the time and energy to develop a private lender program. It is not a get rich quick plan. You must be organized and have a well developed business plan and marketing plan to meet and develop private lenders and build relationships.

As part of private lending program you must have ways to attract private lenders to call or email you to start the process. Once a potential private lender has contact you must send them some information about your private lending program and then call them and set up a meeting to advance the discussion.

Here are 6 steps to a private lender program.

1) Business Plan: You must have a solid and believable business plan that fits your experience level and skill set. If you have only bought one or two properties you cannot tell a private investor you plan to buy 12 properties this year. This is not believable and the private lender will not lend you money. Your business plan must be well thought out and when you sit in front of a prospective investor it must be believable and achievable without being a stretch.

2) Credibility Kit: Building your personal Credibility Kit is going to be one of the most important tools in your real estate investing business. Nothing speaks louder or more clearly about you or your integrity than letters from your sellers, personal reference letters, letters from your lenders, copies of ads you have run, photos of properties you have bought and sold, testimonials and references, and certifications or professional licenses. The professionalism that a good Credibility Kit presents to private lenders is very powerful and shows you as a real estate investing expert.

3) Marketing Plan: You must have a good Marketing Plan including several different types of lead generating marketing to get potential private lenders to call you and request more information or come to your educational seminars. These methods can include post cards, flyers, networking within professional organizations, and group or one-on-one educational presentations. We do NOT recommend any big or public advertising such as newspapers or internet.

4) Follow-up and Presenting Deals: Once your marketing has generated some leads it is time to present deals. You may want to meet with the potential lenders in a one-on-one meeting and lay out why your real estate deal makes sense and how the investor’s money is well protected and what return they can expect to earn. You also may want to send out a short summary to a number of potential lenders and see if they are interested by having them call you for more information and details. If one of the lenders calls from your emails it is important to follow up and send both your Credibility Kit and deal summary for their review.

5) Legal Forms and Documents: One of the great advantages of private lending is how simple the forms are for a typical private lending transaction. In fact, most private lending transactions only involve four documents including a Mortgage or Deed of Trust, Promissory Note, Insurance and Disclosure Statement. The most important document is the Promissory Note and this is where you add certain clauses that allow you to control the deal and give you flexibility down the road.

6) Closing: Once you have a private lender ready to go and your forms prepared for the deal, it is time to close. I strongly recommend to my coaching students that they always close with a title clerk or attorney and let them prepare the closing documents and handle the money for you at closing. For the small fee they charge, it takes a lot of headaches away and adds a level of professionalism to your investing business. I also strongly recommend that the title clerk or attorney record the private lenders mortgage with the local county land records office.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by going to http://realestatewealthtoday.com/FREE-eBook.html .

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

Real Estate Investors - Learn the Most Important Element You Must Have to Make a Successful Offer!

The first step in the instant offer system is simply to build rapport. This is a fundamental building block to any offer. You cannot develop a deal with a seller if you're not in rapport.

What is a Rapport?

What is rapport? It's hard to define. It's not necessarily being friends. It's not necessarily having a long relationship. It's not that. It's a sense that the two of you are on the same page. There's some comfort between the two of you.

There is starting to be a sense of trust that you're comfortable with each other. You have a sense that the other person and you are kind of moving in the same direction that both of you want to go.
If you don't have rapport you cannot move forward in this system. It is absolutely the most essential of the five steps. If you do not have rapport then really the process is over.

The Importance of Rapport

If you go talk to a seller and the first couple of minutes are very awkward, maybe very argumentative or you say something that the other person doesn't like - it gets their back up a little bit - the offer process is really over at that point. It really can't proceed until you come back and you develop that rapport.

It doesn't mean you can't come back and get it, but at that point you've got to take a minute and build rapport.
How to Develop a Rapport

One of the best ways to develop rapport when you walk into somebody's home is to start to ask questions and take a little tour of their home. Make comments about some of their belongings in the house.
Maybe they've got sports memorabilia and you can make a comment about it if you're in a sports town. You can talk about the great game a couple of years ago, the Superbowl, World Series or whatever. You're developing some rapport. The two of you are developing some commonalities. You're starting to understand each other.

If the person has pictures of their kids or something of that nature you can make comments about that. If there's something about a college, maybe you can make some comments about that - you or somebody you know has been there.

Basically you want to walk through the house with that individual, spend a few minutes and just chat about relatively minor things - nothing important. That is the rapport building process. You can compliment the house. If it's decorated nice or there's something you particularly like about the property, a compliment is obviously a process of building that rapport. It's important that you go through this step. It's important that in your mind you take some time.

I know everybody wants to jump to the table and start making the offer, but this process needs to take its time. Let it build and develop naturally. If this walk through takes half an hour, let it take half an hour. Don't try to force it. Again, the rapport will happen naturally if you allow it to.

I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to
Real Estate Investing Blog.

Real Estate Investors – Learn the 5 Key Elements You Must Have to Make “No Money Down” Offers

I would like to talk about what I call the “WOWWW” formula. It is a simple formula that you’ve got to understand and incorporate into your business if you are serious about real estate investment.

There is simply no way that you can structure a truly no money down and creative offer if you don’t understand this formula. There are just five pieces to it. Four of which are “W’s” and one of which is an “O”. The five important elements to working with a seller before you can structure an offer you must know these five pieces of information.

“W” When

You must know when. That is basically when do they want to sell? You want to understand their sense of urgency, their motivational level. If they want to sell months from now, they’re not very urgent. You’re not going to get a very good deal, and it’s really not something you should be spending much time on.
I’m not saying you don’t capture that person’s name, email and phone number, and put it in a database somewhere and follow up with them on a regular basis through postcards and what not. But they’re not going to be a deal this week or next month. They’re simply not.

If they’re not properly motivated, and the when is motivation, if they are going to be doing a deal in the next 30 days because of a foreclosure, they’re moving out of state, or they’re out of state or about to miss a mortgage payment because they’ve been trying to sell it for a year and they can’t sell it and they’ve run out of money, then their ‘when’ has really shortened up.

“W” What

What is their situation? That’s kind of related but you need to understand what’s going on with them. Why do they need to sell? Is it a foreclosure or pre-foreclosure? Is it a divorce? Is it a sale where they can’t get it sold? Is it that they bought it to flip?

We’re seeing a lot of this. People have bought things to flip them, went in and rehabbed it – spent a lot of money – and they were hoping to sell it but the market turned on them and they got stuck. So you need to understand what their situation is. That’s an important element of this.

“W” What Is the House Worth

Worth is always difficult to nail down, but you should do your homework and figure this out. You should look at comps or appraisals or whatever other sources of information you want to try to figure out what the properties worth fixed up.

It may be worth $150,000, $200,000, $300,000 or who knows. You should have some sense of what the property’s worth to make an offer.

“O” Owe

You should know what the person’s owes on the mortgage or mortgages. This is a critical element and something a lot of people don’t understand. You cannot make an offer through the MLS system if you don’t know what the other person owes. It’s very hard to make a creative offer if you don’t know what they owe.
If the property is free and clear and there’s no mortgage, then that will dictate a completely different type of offer. If they’re completely under water and the house is worth $130,000 and the mortgage is $150,000 that will drive a completely different type of offer. If they owe $90,000 that will drive the ultimate offer.
You cannot make quality offers to sellers if you don’t understand what they owe. It’s absolutely critical. All five of these are critical.

“W” What They Want

Probably the least important is what they want. That will change over time. If they’re not motivated and don’t need a quick sale – one and two aren’t really in place – most likely they’re going to want a high price. They are not truly ready to do a deal. They are not where you need them to be to do a deal.
What they want first all changes over time. It’s also probably the least important of the five items. However, you do need to know what that is. If they want some outlandish number, you don’t want to spend a lot of your time and effort on it.

That is the WOWWW formula. Use it on every deal and make much better offers.

I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to
Real Estate Investing Blog.

Real Estate Investing: How to Use Voice Mail Systems to Improve Your Marketing Response Rate

Choose a Voice Mail System


Before setting up voice mail systems you have to choose one that will suit the needs of your business.  I use a company called Freedom Voice Systems. I think there are probably 8 or 10 different programs out there that are somewhat similar. A typical voice mail system will have a couple different price points depending on your needs.

A basic system may only have 10-20 different voice mail boxes. A more advanced system, the one that we use, has I think has 1,000 boxes or maybe 900. I think it starts at 100 and goes to 999, so I guess that’s 900 total boxes that we have available within the voice mail system.

A typical price for a voice mail system of any real quality is going to be somewhere around $20-40/month, a very minimal investment in terms of the amount of money that you put into that.

Using Voice Mail to Improve Response Rate


What a voice mail system allows you to do, once you’ve got it in place – let’s say you want to start marketing to sellers. You want to go out and you want to create some marketing pieces. You’re going to have let’s say a newspaper ad, you’re going to have a postcard, maybe you’re going to have your business card, and you’re going to have one or two other pieces of marketing, whatever they might be.

With each one of those various pieces of marketing, you’re going to put a different box number. You’re going to put Box 100, Box 101, Box 102, Box 103. The reason for that is that every time somebody calls you off of one of your pieces of marketing, the system will record where that came from.

Let’s say at the end of your first month you’ve got 10 calls on Box 103. Let’s say Box 103 was postcards, so you know that if you sent out let’s say 1,000 postcards and you got 10 calls back, that’s a 1% response. That’s not a bad response. Now maybe there’s some things you can do to make it better, but you know at least on your first mailing you got a 1% response. That’s not bad. It allows you to know precisely what your results were. You can know it mathematically.

So now what you can do the next month is maybe you send out another 1,000 postcards. Maybe you change the headline, maybe you make the offer a little bit nicer, maybe you change some of the information. You change the postcard, you do it again, and this time you get 15 calls the next month. Obviously what you did that second month is better than what you did the first month. Now you’ve improved your system and it’s gotten even better.

I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.

Why Private Lending is HOT!

We are all aware that real estate prices are down anywhere from 15% to 40% across the country.  In the past, you might have invested $15k to $30k to buy rental property that rented for $1,000 per month and netted the investor 10% to 15% on their investment. 

Now you can buy that same property for dramatically less but the rent has remained the same, or even gone up slightly, over the last couple years.  So the return to the investor has gone up substantially and 30% to 50% returns on your investment are ordinary today

The hard part right now is being able to get a bank loan. Banks want to see 20% to 40% down from real estate investors AND excellent credit, traditional employment, and personal guarantees.  If you do not meet these criteria you are essentially lock out of the traditional mortgage market and will be unable to borrow money from banks.  Many of the other non-traditional loans such as “no-doc”, ALT-A and no money down loans have all disappeared due the financial crisis.

So what is the solution for real estate investors that have been locked out of the traditional mortgage market?   
Private Lending is the answer!

Private lending is a consistent source of funds with which to purchase real estate deals and to which you can often go back to again and again and again.  In fact, the more you use, the more will become available as you develop relationships with more private lenders.

The reason why private lending is HOT today is so many people are lock out of the traditional mortgage market and private money is their only option to get money for real estate investments.

What is private lending and who are private lenders?

The definition of a ‘private lender’ is an individual that you can negotiate directly with on a personal one-on-one basis from whom you wish to borrow money for real estate investments.  The money can be used to purchase rental real estate investments or to supplement funds borrowed from a bank to cover down payments.

Private lenders come from all walks of life and may not know the first thing about the real estate business.  But what they do have is extra cash or assets that they can invest in your real estate deals.   These individuals are generally middle class people, who have some extra funds to lend.  They can be retired business people, corporate executives, professionals such as doctors, lawyers, or business owners or even blue collar workers. 

Private lenders are looking for returns substantially above the 3% to 5% they get at the bank with CD’s or money markets.  Most private lenders are looking for investment returns in the 9% to 15% range and secured by local rental real estate. 


For more information please go to http://www.private-lending-secrets.com/.

Property Management Secrets for Real Estate Investors

One of the best ways to build up long-term wealth and passive income is by buying and holding rental properties.

While being a "landlord " isn’t a glamorous job… if you run your rental property business correctly, it can be a very rewarding, easy, and profitable way to invest in real estate.

In just 72 hours we are starting a power packed 3 4 Night Live Tele-seminar where you'll learn simple step-by-step process to develop your own Property Management Program for Maximum Profit and Avoiding Tenant Headaches.

Imagine the money you will save by simply avoiding one bad tenant (can you say $1,000's). Now imagine having good tenants that pay on time and do not call you with minor problems and allow you the time and energy to focus on buying more real estate and growing your business.

Well this program will give the knowledge to achieve these goals.

To learn more about Property Management Secrets for Real Estate Investors and listen to a 30 minute audio please click here ===> http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Who is Property Managements Secrets For?

• Prospective property owners and landlords
• First time property investors
• Portfolio builders who need their properties to work for them
• Experienced multi-property landlords looking to get the most from their property

This course starts Thursday September 10, 2009 so sign up tonight at http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Thanks

Mike

http://www.learnrealestateinvestingblog.com/

The Top 10 Real Estate Investment Blogs

I have compiled a list of the Top 10 Real Estate Investing blogs – several of them I use on a regular basis and recommend you do the same. I try to take the good and interesting blog post and routine post them on my blog at http://www.learnrealestateinvestingblog.com/.

Please bookmark this site and I will update from time to time, so stay tuned.

Enjoy the list, and if you like or know other blogs too, e-mail me or include them in the comment field, and I’ll take a look.

The Top 10 Real Estate Investment Blogs

http://www.realestateweblog.org/

http://www.biggerpockets.com/renewsblog/

http://www.investorwealth.com/blog/

http://www.equityscout.com/blog

http://www.investing-secrets.com/

http://topsites.blogflux.com/real-estate/

http://www.investorloft.com/blog/

http://www.inman.com/blog

http://www.reiblog.org/

http://www.realestatewebprofits.com/rewp/blog/real-estate-blog.php

Thanks

Mike

http://www.LearnRealEstateInvestingBlog.com/

Property Management Secrets for Maximum Profit -Teleconference Starts Next Thrusday

Many of you are aware that I started a property management company
about 3 years ago. We currently serve over 100 real estate
investors and manage about 200 rental properties.

As part of starting this company, I have had the “privilege” of
making just about every mistake known to man. We have done stupid
things like

• Advertised with a typo in the phone number and wrong house number;
• Misplaced a lease and was not able to find it later;
• Putting tenants into a property and the tenant never made another rent payment after that; and
• Used a contractor and actual paid him before they did the work – Mistake……

Why do I tell you about my mistakes…to show you that I have made
all these mistakes and now I can teach you how to avoid them and
possible save you from making the same mistakes and save you
thousands of dollars?

As part of the Property Management Secrets for Real Estate
Investors tele-course starting September 10, 2009 we will spend a
lot time talking about things like

• Professional management versus “Mom and Pop” management and why a professional management style is the key to long term success
• The Advantages of Professional management

i) Improved profits
ii) Maintain your property for long term value
iii) More fun dealing with better tenants and more cash flow

• Part-time versus Full-time property management and how to balance

If you would like more info on the Property Management Secrets
starting September 10, 2009 and get FREE 60 minute audio please go
to http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Thanks
Mike Lautensack
http://www.LearnRealEstateInvestingBlog.com/

Property Management - FREE Audio on the 10 Success Secrets of Property Management

Do own a Rental Property or have you ever thought about buying a
rental property?

Have you ever had a problem with one of your tenants like
nonpayment of rent, late rent, complaints about maintenance?

How would you like to become a more professional property manager
and move beyond "mom and pop management".

I just completed a 60 minute audio titled "Learn the 10 Success
Secrets of Property Management Every Real Estate Investor Must Know
to Manage Your Own Investment Properties for Profit and Avoid
Tenant Headaches!"

If you would like to listen to this FREE audio please go to
http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Here is what you are going to learn and discover in this brand new
tele-seminar:

• What is Property Management and why it is absolutely essential to be successful in real estate investing...

• How to use both offline and online marketing techniques to get the phone buzzing with qualified potential tenants...

• The 3 keys steps you MUST take to screen potential tenants and maximize your potential of getting good long term tenants that can make landlording a joy...

• Discover the advantages of a true professionally lease designed to protect the owner versus a "store bought" lease which favors the tenant...

• How to Get Your Tenants to Stay After the First Year...
• And of course, a whole lot more!

If you would like to listen to this FREE audio please go to
http://www.realestatewealthtoday.com/PropertyManagementSecrets.html

Thanks
Mike Lautensack
http://www.LearnRealEstateInvestingBlog.com/

Learn Property Management Secrets for Real Estate Investors

Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches!

I am going to to do a power packed Free 45-60 minute LIVE Tele-Seminar where you'll learn the step-by-step process to develop your own Property Management Program.

Every successful Real Estate Investor has crucial success areas they must focus on to make their investment properties perform profitably. They know that focusing on the right things leads to high tenant occupancy and rental income profits. They also know focusing on the wrong things ultimately leads to disastrous results and never ending tenant headaches.

So here is what you are going to learn and discover in this brand new tele-seminar:

• What is Property Management and why it is absolutely essential to be successful in real estate investing...

• How to use both offline and online marketing techniques to get the phone buzzing with qualified potential tenants...

• The 3 keys steps you MUST take to screen potential tenants and maximize your potential of getting good long term tenants that can make landlording a joy...

• Discover the advantages of a true professionally lease designed to protect the owner versus a "store bought" lease which favors the tenant...

• How to Get Your Tenants to Stay After the First Year...

• And of course, a whole lot more!

To sign up for this FREE tele-seminar on: Tuesday, August 18, at 8:00 PM Eastern simple click here ===> http://www.realestatewealthtoday.com/PMS-Signup.html

Even if you know you can't make the specific time, register anyway so I can send you a link to the Audio Replay...

It's going to be a good one, so register now at

To sign up for this FREE tele-seminar on: Tuesday, August 18, at 8:00 PM Eastern simple click here ===> http://www.realestatewealthtoday.com/PMS-Signup.html

Mike Lautensack

Real Estate Wealth Today
http://www.realestatewealthtoday.com/

P. S. I only have 125 lines available for this call, so please get on 5 minutes early so you don't miss the call.

P. P. S. We also now offer a limited number of people one-on-one private coaching to grow and expand your real estate investing business with private lending - If interested please click here and fill out the form and I will call you to discuss your needs.

To sign up for this FREE tele-seminar on: Tuesday, August 18, at 8:00 PM Eastern simple click here ===> http://www.realestatewealthtoday.com/PMS-Signup.html

Rate of Owning Homes is Plunging

A recent USA Today headline states "Rate of Owning Homes is Plunging - Analysis forecasts drop to 1985 levels".

Homeownership in this country peaked at about 70% in 2005. Since that period the homeownership rate has declined to 67.4% this year and is projected to continue to drop dramatically to pre 1980 levels of about 63% by 2020.

During the late 1990's and early 2000's there was a strong push by our government to increase home owners with the view that home owners improve neighborhoods and the American quality of life. They pushed the mortgage industry to find ever more ways to make it easy to get a mortgages and buy a homes. In hind sight, we know we push too hard and were putting people into homes and mortgages they could not afford. These folks should have remained renters and
avoided all the foreclosure headaches.

This process is now unwinding and we have all seen the dramatic impact it has had on the financial and mortgage industries. But what does this all mean for you and I. It means more and more people will be renters.

The impact of going from 70% to 63% in the homeownership rate means about 23 million people will become renters versus home owners over the next decade. That is right - I said 23 million new renters.

The home building industry has already seen this trend and is shifting to building more apartments and condos versus houses. We also saw data this month that the average size of new homes is down 15% to about 2300 sq. ft. versus 2600 sq. ft.

This is very good for people catering to the rental market and has huge implications if you want to buy real estate for renters and hold for long term wealth. Landlords and property managers will be on the right side of the market for a generation or longer. This is very bullish for rental real estate once some of the current dust settles.

For more information on our upcoming FREE Tele-seminar titled Property Management Secrets for Real Estate Investors please go to
http://www.realestatewealthtoday.com/PMS-Signup1.html

Inspirational Video...

Just wanted to shoot you the link to this 1 minute video
I found on Youtube today... great way to start the weekend and might inspire you.

To view go to http://www.youtube.com/watch?v=RmTxr7OsPj0

Short but inspirational...

Also do not forget to sigh up for our Tuesday Night Teleconference Tips where we do free 1/2 training calls every Tuesday evening at 8:00 eastern and all calls are free.

Go to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html

Have a great weekend

Mike

http://www.private-lending-secrets.com/

Discover How to Find High Net Worth Investors For Your Private Lending Program

The key for real estate investors to finding high net worth (HNW) private lenders is first the marketing image and then a consistency of purpose.

Marketing Image

It's essential to know that most affluent potential investors are NOT attracted to the typical private lending marketing. I receive loan requests all the time from friends, investors and others and most are very ordinary and uninteresting. Very few seem interested in getting to know me or my investment needs.

Affluent investors are not going to respond to the same marketing you use for middle-class mom & pop investors. It takes a unique marketing edge to attract HNW investors.

We all have association links in our brain. Those associations will cue us to make snap judgments based on past experiences.

Take the affluent investor...

Most of their advisers use the personal approach in selling services to them. Have you ever seen the business card of an investment banker or wealth adviser? Was it riddled with "Earn 12% Interest.." and their entire pitch front & back?

Was it printed on bright green card stock?

So do you think the wealthy investor will give much credibility to your fluorescent business card that's printed with 400 words?

Be sure to have quality marketing materials that show you in a professional light.

Consistency of Purpose

It is very important that when marketing to HNW people that you have a consistency of purpose and stay with your marketing. If you plan to send one or two marketing pieces to a HNW with no further follow up you might as well not do any and save some money. You need to have 7 to 15 steps in your marketing plan to HNW.

They will almost never respond to the first couple marketing pieces. These type people are busy and need to see your message on a repeated basis. You should plan repeated marketing step over at least one year period with many different types of marketing including post cards and letters.

But is very important that at some point your marketing tries to get a one on one personal meeting with the HNW person and that is where the real deal will be made.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

Real Estate Investors - Learn How to Avoid Hard Money Lenders and Discover Private Money Sources

One of my coaching students recent asked me how to raise money for real estate deals since she was having NO luck raising money through hard money lenders. In fact, she had just paid some "guru" $25,000 to take a course and the whole course was about how to raise hard money.

Once she and many of the other students in the Guru's class start talking they discover that no one was having any luck raising money with money hard lenders. They quickly learn that most hard lender money are out of business. The few that remain have such high lending requirements that the deals made no sense when you have to put up 50% of the proceeds, sign personally, put up cash reserves and pay interests north of 25%.

She was very confused and upset to pay this kind of money to get information that was grossly outdated and useless in today's world.

I quickly explained that the answer of how to raise money for real estate deals today is to use "private money" not hard money. The difference is with private lending you are dealing directly one-on-one with a private person who may want to invest in your business. You are not dealing with banks or hard money lenders who have no money in today's post financial crises.

Private lending is a consistent source of money to purchase discount real estate deals that you can go back to again and again and again. The more you use private money lenders, the more money that will become available as you as you develop that relationship.

It is important that real estate investors understand that for the next several years you will need to use and develop a private lending program as other sources of money will dry up and be very difficult to get.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

Private Money Lenders - Where to Find Them and Grow Your Real Estate Investing Business

To locate private money lenders people have employed many different successful techniques.

For instance I heard of a real estate investor that found their investor standing in line at a grocery store. It was a long line and he started up a conversation with an older gentleman standing behind him. The topic came around to real estate after the gentleman asked what the investor did for a living. As soon as the investor said he was a real estate investor the gentleman perked up and said how ironic because he was looking for an investment since the stock market had tanked. It is as easy as that. Now that investor is a millionaire and retired at 35 all because he had the guts to talk with someone while standing in line at the grocery store.

Answer ads placed from for sale by owner properties is another excellent way to find private investors. Having an excellent real estate agent on your side will help you greatly research these properties before you waste your time and the sellers asking for a loan they cannot provide. Most multiple listing services provide agents with a way to see if the owner owes anything on the property and how much and to what bank. Weeding out the properties that do not qualify in the comfort of an office is much better than after you have spent the time and energy to plan an offer and get the earnest money agreement to the seller only to have it rejected because they owe too much on the property.

You can still go to another private money lender, instead of working with the home owner but it makes your life a lot easier and makes your business run a lot smoother if you can know before putting in an offer on a property the exact situation the seller is in. This gives you so much more purchasing power because now you can plan your offer to satisfy what the seller needs and also what the property can provide. This also makes your offers a lot more successful so you are not wasting tome on investments that will never make you any money.

The biggest and best techniques when working with private money lenders is to treat them with the respect you would a boss or a prestigious client and keep them informed of your decisions and you will have an excellent contact for years to come.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

Private Money Lenders - Where to Find Them and Grow Your Real Estate Investing Business

To locate private money lenders people have employed many different successful techniques.

For instance I heard of a real estate investor that found their investor standing in line at a grocery store. It was a long line and he started up a conversation with an older gentleman standing behind him. The topic came around to real estate after the gentleman asked what the investor did for a living. As soon as the investor said he was a real estate investor the gentleman perked up and said how ironic because he was looking for an investment since the stock market had tanked. It is as easy as that. Now that investor is a millionaire and retired at 35 all because he had the guts to talk with someone while standing in line at the grocery store.

Answer ads placed from for sale by owner properties is another excellent way to find private investors. Having an excellent real estate agent on your side will help you greatly research these properties before you waste your time and the sellers asking for a loan they cannot provide. Most multiple listing services provide agents with a way to see if the owner owes anything on the property and how much and to what bank. Weeding out the properties that do not qualify in the comfort of an office is much better than after you have spent the time and energy to plan an offer and get the earnest money agreement to the seller only to have it rejected because they owe too much on the property.

You can still go to another private money lender, instead of working with the home owner but it makes your life a lot easier and makes your business run a lot smoother if you can know before putting in an offer on a property the exact situation the seller is in. This gives you so much more purchasing power because now you can plan your offer to satisfy what the seller needs and also what the property can provide. This also makes your offers a lot more successful so you are not wasting tome on investments that will never make you any money.

The biggest and best techniques when working with private money lenders is to treat them with the respect you would a boss or a prestigious client and keep them informed of your decisions and you will have an excellent contact for years to come.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.

10 Reasons to Use a Professional Property Manager

1. You don't need to show the property.
2. You don't need to fix the toilet or do maintenance.
3. You don't need to answer emergency call in the middle of the night.
4. You don't need to get calls from the HOA when the tenant is breaking rules.
5. You don't need to do background or credit checks.
6. You don't need to do walkthroughs and inspections.
7. You don't need to handle an eviction.
8. You don't need to collect the rent.
9. You don't need to know all the real estate laws.
10. You can spend more time acquiring additional properties rather than managing them.

12 Powerful Tips to Getting Private Money

1) It’s Easy to Get

I recruited my first private money lender when I was 22 years old . . . and if you’ve ever seen a picture of me, you know that I look young for my age. Soooooo, when I signed up numero uno, I looked like I was 17.

People talk about getting private money like there’s a big mystery behind it and say, “Everyone that I talk to wants to hold on to their money right now and is worried about the real estate market.”

That may be someone’s conditioned response but when you educate them on the process, how it works, why it makes sense, and you ask them good questions to elicit their needs and goals, the investment opportunity sells itself.

Come on guys . . . if a 20 something college drop out that looks like a teenager can do it, you can too!

2) Private Money Is All About Personal Relationships

By personal relationships, I mean relationships that YOU build in order to get private money. I often times get asked what one of my private lenders would charge to finance a deal. And I have to tell them, that’s not what it’s all about.

Get out there, spread the word that you’re a real estate investor, that you have great investment opportunities, and cultivate rock solid personal relationships.

3) No Credit . . . No Problem

Private money loans are based on the property, not the person. When you have a great deal under contract . . . let’s say for $120K that’s worth $180K . . . the person that lends you the money is doing so based on you buying the property far under value.

4) Virtually Unlimited Quantity

A private lender is just an everyday person who lends money to you as an investment rather than investing the traditional way through CDs, mutual funds, stocks, and bonds.

Anyone that you know and everyone that you meet is a potential source of private money. Most people, especially in today’s market, are looking for good opportunities to invest.

You’ll never run out of private money prospects for your real estate investing needs.

5) Process of Harvesting Funds

Check out the article 4 Steps to Harvesting Private Money for Your Deals. It breaks down the process to … till the soil, plant seeds, nourish your field, and harvest the crop.

6) Go for the Formal Appointment

This is one of the vital pieces to the private money getting puzzle. Investing in anything is a serious matter and should be treated as such. Once you pique someone’s interest with your 30 second commercial, you go for the formal appointment.

This is where you meet with all decision makers to present your investment program and educate each prospect on your business model and how it relates to today’s market.

7) Use a Professional Presentation

The presentation that you present to your private money prospects should be professional and specifically crafted for optimal success. If you don’t already have one, you can download the private lender PowerPoint presentation that I cultivated over the years.

There’s a script included to show you exactly what to say and how to say it as well. Also, I’ve studied sales extensively and integrated an advanced sales process into the presentation. It’s some pretty powerful stuff . . . enjoy!

8 ) Make Your List

Here’s your first action step . . .

Now, this is a brainstorming session. Which means, do not attempt to qualify your answers . . . just write down what comes to mind. One of the biggest mistakes I see people make time and time again is to disqualify people.

I want you to write down the first five people that come to mind that you could set up an appointment to present your investment program. DO IT NOW!

If you are already reading this sentence, you didn’t listen to me. Please stop reading this and write down five people.

OK, now write the date by which you will have called them to set up your first private money presentations.

By committing to following through on this action step, you are on your way towards getting your next deal financed with private money.

9) Listen to Henry Ford

I thought I would bring in the wisdom of Mr. Henry Ford to help us out a little bit . . .

“If you think you can do a thing or think you can’t do a thing, you’re right.”

This is powerful advice! Your expectations will play a major role in your success or failure at getting private money. The simple fact that there are thousands of investors all across the country that use private money to finance their real estate deals should be proof enough that you can do it too . . . regardless of age, race, your network, your net worth, or any other excuse you may come up with.

10) Follow Up Until They Buy or Die

The key to my success over the years at building my base of private lenders was aggressively following up with people (after I had shown them the PowerPoint presentation) until they lent me money on a deal or told me to get lost . . . and the latter never happened.

After you formally present to someone, you will have gathered some much needed information from your prospect about their needs and goals. Now as you follow up with them, only present deals that match the criteria that you gathered at your meeting.

And use my philosophy when you need to get a deal financed . . . “Ask until.”

11) Where to Find Private Money Prospects

One of the best places to find potential private lenders is at your local real estate investment club meeting. Often times, these meetings are filled with people who have heard real estate investing is lucrative and want a piece of the action but don’t really want to go through the process of learning how to do it themselves . . . that’s where you come in!!

Educate them on how they can get involved investing in real estate without having to do anything other than writing a check.

Also, check out this article on the 4 Types of People Most Likely to Lend You Private Money.

12) Business Card Reversal Trick

This is where you use the back of your card for a marketing message that piques someone’s interest in your investment program without you having to bring it up in the first place.

Here’s what you do . . . on the back of your business card, have a phrase like, “Learn How to Make High Returns Backed By Real Estate! Email at _____ For More Info …”

Now, when you hand out your business card, you’ll have people ask you what this means. Instead of you just telling people about your investment program, people are asking you about it . . . which is where you want to be.

- Patrick & Trevor