Real Estate Lending: Finding Funding Recap
December 16, 2014
As our Finding Funding journey comes to a close, I wanted to do a brief recap of the previous article discussions. Over the past several weeks, we’ve discussed several different funding avenues for real estate investors. As we end this series, I wanted to recap the different avenues of funding and where one can locate these lenders or lending options.
Remember this important reminder: it’s critical that whatever information you bring to the potential lender is legit. Whatever it is that you can do to separate yourself from the competition, DO IT!
So, where does one find all of these lending options?
Hard Money Lenders – HML:
Visit my website at www.andrewcordle.com/lender where my team spent countless hours locating and listing lenders in every single state. Our list of lenders is the most comprehensive list on the web that’s freely available for all real estate investors.
Cash/Credit Card:
This is established monies you already have or credit that you’ve built previously. If your credit score is a downfall, there are several companies out there that specialize in helping. They help both repair your credit and open doors to future lending options. For the best in the business, visit Pathway Financial at https://www.pathwayfinancial.org/ or by calling 1-877-72-FUNDS.
Private Money Lenders – PML:
As we discussed in previous blogs, PML’s are tricky to find. They’re usually people who are in your immediate circle of influence.
Self-directed IRA/401k – SDIRA:
There are many nationwide and local IRA/401k companies in your area. Research these companies as they often have local events where investors become clients or just to rub elbows, network, and build bridges with other investors of like-mind.
As I type this article, my team and I are preparing to sponsor the 2014 Equity University Networking Conference in Orlando, FL, hosted by Equity Trust. I’m spending thousands of dollars to sponsor and attend this annual event in order to network. Maybe we’ll see you there next year?!
Joint Venture Agreements – JVA:
JVA’s are very popular and can be found in your circles of influence, local REIAs, business networking events, Meetup groups, etc. If you were looking for money, instead of attending events for rehabbers, wouldn’t it be wiser to do as I’ve done in the past and attend events for lenders? If there’s one hundred rehabbers and only one lender, the odds are in the lenders favor and they can be as selective as they want. However, if you attend a lending event where there are one hundred lenders and only a handful of rehabbers, who’s odds are favored now?
Do you see my point? This is how I find such great lending opportunities. This October, I will be sponsoring another event just to locate more joint venture opportunities. I’ve attended these events for years and have purchased well over $5 million dollars in single family home purchases. It works and I’m living proof. Two of my favorite events are held by pitbullmortgageschool.com and aaplonline.com.
If you want money, you have to go after it. It’s not going to find you. You have to work to get it so TAKE ACTION!
How do you present yourself in a way that attracts lenders? I use three simple things that provide me quite the advantage – and you can do them too:
Project Binder – this is a binder that I maintain that shows the most recent flips that I’ve completed and sold. This binders includes before and after pictures, all numbers, legal documentation, material costs with receipts, contractor invoices, etc. I use this to show the potential lender that I’m organized and have all of my ducks lined-up. This was really big for me when I started out and I still use it to this day.
Bankers Book – This provides the potential lender with my financial snapshot. I print this at a professional print company for lenders who are interested in working with me. It also includes my current resume, my credit report, my flips, my goals, bank statement, proof of funds letter, and my tax returns. Delete any personal information like your SSN. This becomes a snapshot of your recent investing past. You are providing them something they’ll be needing anyway, but you’re doing it right out of the gate – which makes you stand above your competition.
Andrew Cordle Rehabs Revealed Magazine – to see a copy of this magazine, visit http://andrewcordle.com/rehabmag. These magazines are professionally made and include one of my recent flips in color with all pertinent information.
I could literally spend hours upon hours on “Finding Funding” but we don’t have that much time. Therefore, the purpose of this aeries was to provide you a quick glimpse on how to find funding for your deals.
I hope this series has been a help to you and that you’ve enjoyed learning from it as much as I have enjoyed writing it for you. If you have any questions, comments, or concerns, please do not hesitate to contact us support@andrewcordle.com or leave a comment below.
Get out there and Find some Funding!
