Every city and town are full of banks and other lending institutions. So a question might cross your mind, why don’t I just get funding from a bank to buy houses? In the real world, it’s not that simple.
There are a few circumstances and challenges that pop up that prevents me from getting the money, even if I am more than capable of orchestrating a transaction and paying the bank.
I will talk about a few situations why bank loans are not ideal for me and why Private Money Partners present a much better opportunity for me instead of traditional lending firms like banks.
The #1 reason is TIME. We a deal runs across my desk I need to move at lightning speed to make the purchase. Similar to sales at your local department store downtown. You get the picture. The application paperwork is horrendous and then you have to play the waiting game…sometimes for weeks.
The real estate marketplace moves too fast to have wait on a bank’s approval. It is much easier to make a call to a Private Money Partner who’ll probably just have the funds wired from his or her Self-Directed IRA account to my closing attorney’s office. Easy peezy!
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).