Here’s the subject of a recent email sent to me, in summary:
“I want a million dollars.”
Ya…. Don't we all?
In this market, real estate opportunities just keep on growing. The practice of lenders "bundling" large numbers of distressed properties and selling them for huge discounts is gaining more and more favor.
And, it seems, as I result, I am asked on an ever-increasing basis if myself or someone in The Club would "front" the money to buy them. Well, not the money exactly, but show proof-of-funds, so that an investor can take down these gigantic deals. Interesting how the investor seems to always be the person who has very little experience!
Hello... What? Do I look like I just fell off the turnip truck?
Why is it that I never get approached by seasoned investors - those who know the financing game - to borrow a cool $1,000,000.00 with the promise of 50% to 100% returns just so that they can get into these deals?
Why? I'll you why... because experienced investors know that, to take down large multi-million dollar deals, you must first line up the financing.
To try to do it any other way is a waste of everyone's time and causes the investor to lose integrity within their market. Experienced investors don’t get experienced by going off half-cocked!
So... it seems that only the inexperienced investors are trying to hit what would be the longest grand slam in history by pursuing deals that they are ill-prepared to be pursuing... even if they are offering 100% returns.
And in today's market... this is what I would characterize as a "get-rich scheme"... only everyone seems to lose, rather than make money on the way to getting rich.
OK... so now we've talked about deals worth millions... let's talk about smaller deals. Deals that you and I can expect to take down on any given day. Bread and butter deals.
Where does the money come from and how do we get it? Well, in exactly the same way as the big time investors do - we create relationships with lenders. So that when we have that perfect deal, our lenders are standing at the ready with money to lend.
It seems so simple, yet so many investors miss this crucial point... and lose out on many deals because of it.
During our last Help Days we spent at least an hour discussing financing... with a focus on private lender relationships and how to create and cultivate those relationships.
As a result, one participant – Stephanie, who invests in York, PA, shared this result:
“We talked a little about loans on Saturday. I had commented on how I couldn’t find any banks in York, PA that did a "debt-service loan." Because of the Saturday meeting, I remembered that I had a new contact in York and asked him for any
"small local savings and loans" in the area, as suggested at your meeting. He gave me the name of one, and they have the product I am looking for. I am meeting with the bank rep next week and hope to be able to get several loans from them."
Way to take action, Stephanie. The Club is throwing out the pitches (useful information), and you, Stephanie, are swinging for the fences. Keep it up!
Now, I can't promise that we will spend a lot of time on finding and creating relationships with lenders during our next Help Day. I can promise you that we will cover a wide variety of topics. Including the one that YOU most want the group to focus on.
That is – IF you show up on this coming Saturday, February 7th, from 10 AM to 2 PM.
I just ask that you register, to let me know you’re attending.
I urge you to set aside some time this weekend and plan on attending. If this can produce results for Stephanie for her most pressing need, watch what happens when you bring the issue that you most want handled...in front of this very resourceful group.
Oh... by the way... I'll even spring for lunch.
See you there.
Pete
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