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How to Learn Real Estate and Be in Control of Your Financing

Jul 9, 2008
This article will give you a quick primer on the ins and outs of private lending. When you are working towards becoming a strong real estate investor, having private lenders will allow you to do some deals that others could not. Think about going to buy a new car and the discount you may be able to negotiate if you write a check on the spot. Having private lenders allows you to be that one with the check.

Using private lenders is easy. You simply have to establish a relationship with other individuals who have access to liquid money. You are able to work with these individuals because the interest rates you will pay them will be higher than the rates of return they normally will receive at the bank.

You will also put a lien against your property for the amount they lend to you. Think about this from the private lender's point of view: they have a secured interest in a property with a higher rate of return than they can find at the bank. When you normally buy a house with private money, you often get a great deal, potentially eighty cents on the dollar or better.

When working to find private lenders, you will want to advertise what kind of rate you are paying. People will not believe that you are serious until you put a potential rate into the paper. This is how many real estate investors are able to get private lenders. By putting an ad in the newspaper, you are able to allow those individuals with excess cash to raise their hands and say they are interested. This makes it easier than you calling your friends and family. By lining up private individuals ahead of time, you are able to have access to money when you find the good deals.

To file a mortgage is easy. You will simply get a document from your lawyer or from your office supply store, fill it out, and then have the mortgage recorded at your county recorder's office. This will give your private lender peace of mind that he or she is safe and comfortable with the transaction.

Think about the simple steps you have just accomplished: putting an ad in the paper, waiting for people to call you, finding good deals, and recording a deed. This does not cost you a great deal of money and you are able to make sure you find the deals you want. Think about the benefit of going into real estate deals now with the mindset of a cash buyer!
About the Author
For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access
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