Tag Archives: private lending

How to use private lenders for your real estate deals

Eliminate the banks and you will succeed in today’s market.
By Jim Ingersoll
  Enjoy this video clip where I discuss the value of using private lenders.

Want more info on private lending?

1.  Watch for my soon to be released book on private lending on Kindle
2.  Join me at http://coaching.creonline.com OR join my mastermind group by emailing me direct jim@investingnownetwork.com
3.  Watch for my soon to be released Brand New Product on Joint Venture Investing
4.  Come to my soon to be scheduled LIVE EVENT:  Flipping Academy Boot Camp

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Case study for cash flow and equity

By Jim Ingersoll
When you eliminate the bank from your investing equation, there are only two relevant parties in the transaction–the investor and the private lender. The real estate investor is the “catalyst” who does all of the work for the investment including:

  • Find the property and negotiate the sale at a great price
  • Manages the closing
  • Completes the property fix-up to make it “rent ready”
  • Manages the property (landlording)

The private lender is completely passive and does no work, but supplies all the money for the investment up-front at closing for the catalyst.  The funding includes all closing costs, all repair costs, and all funds required for the acquisition, so the catalyst has no money out of his own pocket.

When the catalyst works directly with private lenders,you have a winning combination for cash flow using a joint venture arrangement.  The best part of this joint venture is that both parties are critical to the overall success of the investment.

A Case Study for Cash Flow & Infinite Returns

The catalyst markets and finds a great deal on a 3 bedroom, 2 bath home at a 40% discount price point (60% loan-to-value ratio).  What that means is the purchase price and all fix-up costs will not exceed a total of 60% of the after-repair-value of the home.

Purchase price: (includes closing costs) $ 40,000
Fix-up costs: $ 20,000
Total investment required: $ 60,000
After repair value: $ 100,000

The total investment required is $60,000 and the after repair value of the property is $100,000, which leaves $40,000 of equity once the fix-up is completed on the property. The catalyst found the deal, negotiated it, and performed the fix-up, while the private lender funds the entire transaction expense of $60,000.

In my market here in Richmond, VA, a house like this one will be a typical 3 bedroom, 2 bath house in a working class neighborhood. This house in Richmond will rent for $950 per month creating a nice income stream for the joint venture investment.

The catalyst used none of his own money to get monthly cash flow and an infinite return.

The primary on-going expenses associated with holding real estate are taxes and insurance. In Richmond, the taxes and insurance combined will be about $150 per month for the house in this example which leaves $800 net rental for the on-going monthly income stream for the joint venture.

The $60,000 investment has now been used to pick up $40,000 of gross equity and a $800 monthly income stream. I hope you are wondering how this gets applied back to the members of the joint venture because the answer is… any way that the Private Lender and Real Estate Catalyst come to terms.

For simplicity sake, let’s assume that the two joint venture members agree to a 50/50 split in this venture.

With a 50/50 split, the $800 monthly income stream is split so that both members receive $400 each month; along with this monthly income stream both members also will share the upside equity at some point in the future.

What Did Each Member Earn?

Let’s make one last assumption to show how the ultimate return can be easily calculated for both members of this joint venture.

Let’s assume that both members hold onto this investment property for five years then sell it for $100,000, which is today’s value of the house. What did both members earn on this joint venture?

Private Lender earnings:
$400 per month for 60 months: $ 24,000
Upside equity split of the total $40,000: $ 20,000
Total return over the five years: $ 44,000
Total investment made: $ 60,000
Annualized return for private lender: 14.66%
Real Estate Catalyst earnings:
$400 per month for 60 months: $ 24,000
Upside equity split of the total $40,000: $ 20,000
Total return over the five years: $ 44,000
Total investment made: $ 0
Annualized return on investment: Infinite

Everyone Is Happy

The private lender made a very strong return of 14.66% annually and his $60,000 investment turned into a $104,000 at the end of the five years.

The real estate investor (catalyst) used none of his own funds, enjoyed $400 per month in cash flow and an overall return of $44,000 over the five years. The catalyst enjoyed an infinite return because he used none of his own money in the investment.

How many houses would you want to buy and hold this year and earn $400 per month on each house? I challenge you to establish a plan and invest in yourself, so you can easily structure investments similar to this one.

 

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Are You Striking Gold In Today’s Real Estate Market?

By Jim Ingersoll
Are you ready to take strike GOLD in today’s market?

We are in still in the perfect storm, but how long it will last is anyone’s guest.  Last month I was meeting with Daniil Kleyman who is the founder of True Vision Analytics which produces the awesome real estate evaluation software platforms such as rehabvaluator.  Daniil is also a very active investor buying and holding a lot of property right now.  He made the remark that HE does not want to get to the end of this current real estate cycle and look back wishing he had bought more investment real estate.  How about you?  Are you prepared to capitalize right now, before it is too late?

Can you find the very best houses available?

Do you know how to financially evaluate a great deal by knowing the four numbers that make or break every deal?

Do you know how to find all the private money needed so you can buy as many houses as you want and not have to look back in a few years wishing you had done it?

Do you know how to transition from transactional income (flipping, wholesaling, etc) into residual income streams that work for you 24/7 and 365 days a year?

Are you really ready to move forward and create your very own financial friends network that replaces your bank?

I hope so, I do not want anyone looking back in a few years wishing they had prepared themselves and MOVED FORWARD with their real estate investing.

Why invest in real estate now?

MONEY!  Right now is the easiest time to create your very own funding solutions using private lending.  If you are ready to buy houses with other peoples money and leverage real estate, you will not want to miss this event.

FINANCIAL FRIENDS – Are you looking for private lenders?  Make a list of people that you know personally who could benefit from working with you on real estate deals and INVITE them to this event as your guest.  The very easiest way to create private lenders for your own deals is to educate people on how the whole thing works.  Once they see how safe and secure real estate is along with the upside double-digit returns you can easily partner with the people you bring to this event.

WHOLESALERS AND FLIPPERS – Now is the time to transition from transactional income into long-term wealth building and steady, reliable cash flow streams.  Don’t miss the opportunity to see how to do it.

REALTOR’S – Tired of the frustrations of dealing with so many picky buyers?  Tired of the huge hurdles thrown at every transaction from bank under-writers to get deals closed?  You will want to join us and see how you can easily add cash flow income streams and wealth building methods into something you are already an expert in… Real Estate!

Investors –  Many people are tired of earning less than the inflation rate in certificate of deposits, many are tired of watching their 401k accounts sink like the titantic.  Invest in yourself and see how you can invest your retirement into real estate and create double-digit returns safely!

 

Strike GOLD NOW before you miss the opportunity!

Jim

 

 

 

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Top 3 Reasons to use private lending for your real estate deals

By Jim Ingersoll

What is holding you back from buying real estate?  Many new investors are jumping into the market in 2012.  For most investors, the issue is the funding.   They want to buy houses, but do not want to go to the bank to get the shake-down and attempt to get a new mortgage on investment real estate.  They realize that banks today will want 20 – 25% down in order to get a mortgage.  How many houses can most investors buy if they are required to put 25% down?  Not enough!

            Just a few years back we had the opposite problems.  Inventory of distressed housing was low, prices were high and bank financing was loose and easy to obtain.  Which market would you rather operate in?  Today’s market provides much better opportunities for investors if you are ready to fire your bank.

Instead of just having the skills to rehab a house; today you need to have the skill set to rehab your financing.  That is a direct quote from my good friend David Phelps.  Is he right?  Yes, he is.  How can you rehab your financing?  Start with eliminating the need for a bank, learn to structure seller financing and build your financial friends network.   Here are the top 3 reasons that you should use Private Lending and build your own financial friends network.

  1. No Need For Your Own Money (OPM)

Even though real estate prices have come way down compared to a few years ago, houses still take a lot of money to buy them.  I give an example in my latest book, “Investing Now,”  about how you can buy a house for the price of a car. Investing Now by Jim Ingersoll The house will produce rental cash flow and the car will be a financial liability.  Even though you  can buy houses as cheap as cars in today’s market, but that is still a lot of money if you are paying cash or having make 20% down payments to get bank financing.  You must learn to use other people’s money to ensure your success in real estate long-term!      As a real estate investor your returns will be infinite if you do not have any of your own money in the deal.  An infinite return is a great goal for your next transaction and will allow you to continue buying more houses without running out of funds when you learn to eliminate bank financing and use other people’s money.  Want to learn to structure deals with private lenders, never need a bank and earn an infinite return?  I am sure you do so it is time to invest in yourself to learn how to do it.  Join myself David Phelps, and John Groom August 17-18 in Richmond, VA for the boot camp that will change your financial life forever!  Register right now, use promo code FREE50 to save $50 and remember your spouse or partner or potential financial friend can come with you for FREE.  Here is the registration link so you can register right now with this link
Freedom Without Banks Boot Camp Registration

 

      2.  Faster than a speeding bullet

Today’s market is definitely heating up and many foreclosures and distressed properties are receiving multiple offers.  Whether buying houses from banks or direct from sellers (like I love to do), the speed of your closing can be very critical.  Purchasing houses that are in distress situations often times require a very fast closing.  If you are relying on bank financing you will find the process to be full of hurdles that continue to slow down your closings.  These hurdles come in the shape of credit applications, loads of personal financial documentation, rent rolls and leases for other properties you own, credit reports and appraisals.  Each of these hurdles represents an opportunity for delays in closing.  When you are buying distressed real estate you must be able to close on time and without hassles.  Each of these bank-financing hurdles can lead to a lost transaction.  Are you ready to gain momentum and eliminate the delays in closing your real estate deals?  Make 2012 the year you eliminate banks from your investing equation!

 

3.   No More Loan Officers To Deny and Delay

  Today’s mortgage regulations have led to increased under-writing guidelines that can become problematic for many investors.  Each under-writing requirement can lead to a bank saying “no” to funding your real estate deal.  Additionally, when you buy with bank financing you put all your other assets at risk with full-recourse loans, personal guarantee’s, potential rent assignments, etc.  You get my point!  Eliminate banks, eliminate hurdles that lead to killed deals that won’t close and eliminate the risk that banks create.  Learn to create seller financing, buy and hold real estate with joint ventures and create your financial friend network.  Next time you find the best deal of your life that must close in 7 days, you won’t worry about not having the money for the deal and you will be ready to add rocket fuel to your investing model!

            Make 2012 the year you eliminate banks from your investing equation!

How many houses would you like to buy this year if you did not need any of your own money and did not need to be concerned with getting a bank mortgage?  When you eliminate bank financing from your investing strategies you will be liberated to buy as many houses as you want without using any of your own money.  Freedom to buy as many houses as you want will get you off to a great start in 2012.  Are you ready to create your own personal financial freedom path?  Now is the time to register and join myself and Mr. H Quincy Long in Richmond, VA.  Don’t delay on the one event that could change your financial path forever. 

Register right now with this Link:

Cashflow For Life Boot Camp Registration

Please leave questions, comments and hit the “Share” button to tweet this message and share on Linked-in, facebook, etc.

To Your Ultimate Freedom Without Banks!

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Merry Christmas from Jim

Ho Ho Ho!

I hope you have enjoyed your Holiday Season this year and spend a lot of time with your families!

Everything is on-sale at this time of the year and the good news is that also includes housing ha ha.

I am thankful that we can all enjoy a fantastic real estate market.  Also, shout of thanks to those who have

been purchasing my DVD home study courses that are also ON-SALE on my investing now website!

 

I have a lot of announcements coming soon including a LIVE event and updates on my new book which

I am spending a lot of time writing right now during the holidays!

Happy Holidays to All!

Jim

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Choosing your real estate friends and Partners wisely

Investing in real estate is a team sport.

The best opportunities and
best deals are not listed on some exchange
board or found through mutual funds, private
or publicly traded investment trusts.

I recommend investing in only secured
real estate investments – where your
capital is secured by a specific property
that you can control (you can have control
whether you are an active or passive investor
– the important part is the control).

Passive Investor

you have capital to invest but you don’t want to do the ‘heavy
lifting.’ Good news!

Because of the lack
of conventional financing today, your capital
can be invested with low risk into secured
real estate transactions right in your own
local market – or any market that you
desire. Secured by 1st lien mortgage
positions – with returns 3-4 times what the
banks are paying.

And as a “lender,” you don’t have to deal with tenants or
contractors.

You make your money by being “the bank.”

Active Investor or Catalyst 

You’ve got time or knowledge or
both. You know how to find the good deals
and manage them. You just need capital.
Good news!

Your passive friends in the
paragraph above are looking for you! And
unlike a bank, they don’t change names
every two years!

All that’s missing is how to put Passive
and Active together  and that is the key to a great joint venture.

It combines the best of both worlds of a passive investor with money and

the skills of a great catalyst/active real estate investor.

When combined these forces create awesome returns for each other!

What is holding you back?  What is missing?  Leave me a comment and share this posting with your facebook, twitter, linked in and Pinterest friends!

 

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Buying in the perfect storm

I was at my local bank branch this week

sending out a wire transfer for a closing.

The young banker (in his 30’s) asked me

more about what I do and how I buy property

today.

 

He then mentioned his grandfather who had

posed the question to his banker grandson,

how can I get a higher return on my

investment savings today? (Bank savings

and CD rates are 2% or less today).

His grandson, not being well-versed in real

estate opportunities, told his grandfather,

“Well, you’ve got to be active about your

investments and get into buying and

selling.”

 

Hmmm….not bad advice but not everyone wants to be

involved with transactional income —  but many people want

PASSIVE INCOME from their investments.

They don’t want to flip

properties or be the active landlord of

multiple tenant properties.

So what’s the answer, Jim?

Register NOW

and join us at the Ultimate Freedom Without

Banks Bootcamp!

Just click on this link to find out more:
Ultimate Freedom WITHOUT banks boot camp

“It’s the perfect storm.  Real estate is

on sale, credit bank financing is all but

gone, and yet there is literally trillions of

dollars sitting on the sidelines in low or

no-interest bearing accounts looking for a

viable investment home.”

 

What’s missing?  The knowledgeable investor

– the “catalyst” or orchestrator who

can put the deals together, matching private

money deserving buyers and unsold property

inventory to solve a major financial problem

that the conventional markets can’t solve.

Does that sound like opportunity to you?

Whether you are a seasoned active investor or

a passive investor looking for solid secure

investments without doing all of the work, my

friend David Phelps and I have put together

a very special Boot Camp that will change your

investing model and financial future… forever!

 

Join us August 17-18, for

when we reveal the

strategies and tactics that we are using

today acquiring multiple properties at huge

discounts without bank financing and

providing incredible opportunities for

ourselves and others to maximize

Self-Directed IRA’s for tax-free

investing.

 

Just click on this link to Register Now
Ultimate Freedom WITHOUT banks boot camp

Look forward to seeing you next week!

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Chaos to cashflow.

Thoughts on our recent headlines?  “Fears drive storm of selling” “U.S. loses top credit rating”  “Stocks plunge worst since ’08”

 

 

 

 

 

 

 

First – thanks to those of you who have already registered for this one day Event!

There is a lot of Chaos in our financial markets these days and a lot of people are hurting because of it.  401k accounts, IRAs and stocks are dropping like a rock.  Unemployment is not getting better…

The hallmark of a Entrepreneur is to be able to figure out how to capitalize in any market and any economy.  The good news is that as a real estate entrepreneur you can make it happen today because real estate is on-sale and readily available at big discounts.

Follow this link to register NOW:
Sign up today, just click here

Join me on September 24th from 9:30 – 5 pm at the Hilton Homewood Suites in Glen Allen, VA.  Here are some the of topics we will cover:

✓ Investing the right way to maximize returns, cash flow & Equity to give your financial’s some rocket fuel!

✓  Investing in Real Estate Without Tenants, Time or Toilets

✓  Putting together a plan that will earn you millions

✓ How to provide sky rocket returns

✓  Using Retirement accounts for real estate investing passively and make your balance increase super fast

✓  How to find create win-win transactions with sky rocket returns for everyone (without needing a bank)

✓  How to solve money problems for those who don’t know where to invest today

✓ How to buy real estate to maximize monthly cash flow and net-worth

✓ Buying real estate with maximum leverage and maximum returns

✓ Develop a plan for investing for our new economy

✓  The easy way to predict your future course based on your decisions today

This full-day session is for both the real estate investor looking to capitalize today along with those who are confused on how to invest today and avoid the stock market!

The cost is $169 per person or sign up 2 at a time for just $249

In case you missed it, here is the registration link (scroll to bottom of the page and sign up today)

Sign up today, just click here

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Secrets of Private Lending… Revealed next week!

Want to learn to buy houses with out banks? Learn how to find all the money you need for real estate? How to structure win-win transactions? YOU must sign up ASAP or miss the opportunity! I will be presenting a 4 hour course on the secrets of Private Lending in Richmond, VA on August 13th from 9:30 to 1:30 pm.

This is NEXT saturday and sign ups end VERY SOON.

Meeting Location: Keller Williams West End University of Phoenix Suite 150
6600 West Broad Street, Henrico County, Virginia
RREIA Meeting Fee
$70 Non-members (General Public)
$35 for Members of RREIA (Bring ID Card)

How much could you make if you could buy all the houses you wanted and either wholesale them, flip them or keep them as cash flowing rentals? THE NUMBER ONE thing holding everyone back is the lack of funds. Banks make it hard for investors to get loans so why NOT learn to eliminate the Bank and capitalize TODAY?

Check it out and sign up asap: Sign up today, just follow this link:

Sign up today, just click here

Have you checked out the new YouTube videos we uploaded this week? Tons of great content ready for you:

Have you checked out the new YouTube videos we uploaded this week?

Tons of great content ready for you:

Video’s, just click here

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Why Private Lender’s Need Real Estate Investors & The Most Powerful Force EVER!

I love great quotes, don’t you?  What do you think of this quote from Albert Einstein?  Seriously I would love to hear your thoughts, so leave me a comment please!


“The most powerful force in the universe is compound interest”

In my latest book, “Cash Flow Now” I have an entire chapter on this quote because it is SO IMPORTANT to your real estate investing strategy and your ability to ELIMINATE banks from your investing equations.  Email me, Jim@investingnownetwork.com to request my free special report on buying houses without banks.

In case you forgot what compound interest is:  “Compound interest arises when the interest gets added to the principal, so that  the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding interest. A retirement account, for example, may have its interest compounded every year: in this case, an account with $100,000 initial principal and 20% interest per year would have a balance of $120,000 at the end of the first year, $144,000 at the end of the second year, and so on.  Millions of people are earning 2% or less in money-market accounts and CD’s so it is important to know what they are earning.

Using the same $100,000 in the previous example and a 2% return, the retirement account owner will have $110,408 in 5 years and $121,899 in 10 years.  IF the retirement account owner could find a way to earn 10% interest, he would have $161,051 in 5 years (more than $50k gain over the 2% return) and $259,374 in 10 years (more than $130k over the 2% return mark).

I wrote a blog earlier this year (check it out on our site at www.investingnownetwork.com) about everyone having a money problem where I suggested that some people do not have enough money and some people have so much money but don’t know how to earn a great return or fear the possibility of losing it quickly in bad investments like the stock market.  If you know how make money in real estate by collecting income producing properties or can flip houses for capital gains, then you can help solve the problems that millions of people who are afraid of losing their money right now and are sick and tired of earning that 2% in a CD or money market account.

As a successful real estate investor you should have no problem finding a half-price house right now, fixing it up and renting it or flipping it.  You can find ways to provide a fantastic, safe return and solve a problem for someone with money sitting on the sidelines right now.  The private lenders working with me are earning a lot more than a 10% return and are making a killing in this market.  They have a nice, safe and passive investment and I do all the work.  It is a nice win-win scenario where we help each other and both mutually benefit.

 

Take a moment, leave me a comment, ask a follow up question OR help me a lot by sharing this blog post to facebook, Twitter, Linked In, etc.

 

Happy House Hunting!

Jim Ingersoll

www.investingnownetwork.com


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