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The one question that always comes up from private money sources



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By : Ken Spohn    99 or more times read
“Am I writing a check directly to the real estate investor? Or do I write it to
an escrow/title company or attorney?“

This is an important question to ask BEFORE you trust your hard earned money in a private lending transaction. Make sure that the company you work with has you write your check directly to the escrow/title company or the attorney handling the closing of the transaction. If the investor asks you to write them a check directly… be wary and walk the other way. If you're an Investor and you're looking to use a private money source consider these points:

  1. When you’re first starting out, you'll need a plan. If you try to wing this, people with the money have money for a reason. They are cautious! Trying to fumble your way through this will only get you disappointment. You may wan to talk to someone that has done these types of deals before. Doing this wrong can get you in some serious trouble and can have long term negative impact.

  2. Your plan should include things like a reputable title/escrow/attorney that have done transaction like this before. Most title companies will even write up the note/mortgage for you. Make sure you know what to look for in the note/mortgage. Beware, these are boilerplate documents and can have verbiage in them that could burn you in the end.

  3. Have a PowerPoint presentation or at least a script. A 15 minute professional looking presentation can do wonders when recruiting new private money sources. Always look professional. Remember first impressions are hard to forget. Showing up in ripped jeans and a T-shirt will probably not get you the money you are looking for. The key is learning what and what not to say in the presentation. Someone that says they need to think about it is probably confused and a confused mind will always say no. Say “I understand you want to think about it. Which part do you need to think about?”.
If you would like more tips on private money like this one visit: http://www.investorsclassifieds.com/private-money

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