The success mantra of real estate investment lenders is different from other professionals. They consider the following things for their real estate investment:
It is a fact that nothing happens until you make a decision regarding execution. You need to plan what you need to do. Just like most other efforts in life, procrastination can spoil your ruse. You can carry out all the homework, go through all the best-selling real estate investment books, attend all the seminars, and listen to all the experts. Unless you get into the world of real estate investment and execute whatever you have learned and planned, you will get no success at all.
2. Support Systems
A strong support system works as a lever to real estate investment. And it requires smart use of time and money. This can be your informal relationship with a mentor. That means someone you know who has been successful in real estate investment. Remember that your support system, whether an informal one with an acquaintance or a paid relationship with a successful real estate investment lender, will go a long way towards helping you overcome the common and not-so-common issues all real estate investors face as they go about making their living.
3. Informal Mentoring
Under this type of support relationship, you are advised to follow the advice and guidance of a real estate lender who has demonstrated success in the world of real estate investment. Typically, this professional should be your friend, acquaintance, or relative. Ensure that they have what it takes to teach you what you need to know. Otherwise, you are wasting your time.
4. Professional Mentoring
A real estate professional can provide invaluable help, whether you are inexperienced or veteran. Some fundamentals you can expect in this paid relationship include the following:
- Financial advice: Your paid real estate coach should be able to provide you with financial advice. This would include details on working with private lenders, banks, and other sources.
- Group: Interacting with your coach in a group environment via a format like Google Groups or individually via live chat.
- One-on-one: Talk one-on-one to your coach during a regularly scheduled phone call.
This is a broad concept and involves the following things:
- Private Lenders: These are the folks with whom you have already spoken, and now you want to move the ball down the road.
- Finding Deals off Market: Using direct mail, scripts, dialogs, postcards, and other methods optimizing efforts to find off-market deals.
- Postcard Marketing: This is a great way to do marketing of your real estate business. You can unveil an aggressive postcard campaign targeted to the following recipients:
- Real Estate Agents: Realtors are a great source of help and information.
- Motivated Sellers: The people who have hot properties.
- Marketing to Select Private Lenders: Targeted to private lenders who are pre-disposed and ready to do business with you. If you’re raising money for yourself, you want private lenders who are pre-disposed and ready to lend to you.
- Marketing to General Population of Private Lenders: This would be a dedicated campaign to contact potential private lenders and investors.
Funding is one of the most complicated elements in all property investments. Whether you have already established relationships with a range of funding sources like private lenders, banks, credit unions, and other sources of funds, or you are trying to establish those relationships, it is important to learn more about this important task.
- Private Lenders: These are the individuals with whom you should be trying to establish a business relationship. They make a wonderful resource for borrowing money to buy investment properties. Make sure to familiarize yourself with the laws applicable to marketing to private lenders before you begin. One of the best advantages of many lenders is they are asset-based rather than credit-based lenders. This clarifies that as long as your deal remains solid, your credit score is not as important as it might be with credit-based lenders, such as banks.
- Institutional Lenders: Credit unions, banks, and other institutional lenders are credit-based lenders, meaning they are much more concerned about your credit history than ordinary private lenders. To borrow money from them, you must have an excellent credit history and a solid track record of paying your bills.
It can be more difficult to get funding from an institutional lender because of their rigid, credit-based lending policies. Many property professionals try to avoid this route and focus on establishing and maintaining relationships with private lenders.
At Loan Workout Group, we are one of the best real estate investment lenders. We have the unique ability to move quickly on real estate mortgage transactions. We have a team that will take the proper steps to get your property evaluated. And, we will customize your loan based upon the property’s value in the current marketplace. We will make it easy to finance all of your fix-and-flip, rental properties, multifamily, Ground-up construction, and all other real estate projects you may be working on.
By now, you must have become familiar with the success mantra of real estate investment lenders. Take lessons from them to make one of the best investments in the real estate sector.