You know you can do the deals. You can locate the right [tag-tec]properties[/tag-tec] at the right prices. There’s just one problem. Money.
Banks won’t talk to you, especially if you are located in a city undergoing a down market such as Detroit. But aren’t those good conditions for investing?
As we’ve said in earlier posts, we think the best investing occurs during the down markets. Here are at least two good ways to get around the money problem.
1. Scout out your local real estate investing club.
You can usually find hard money lenders in these groups who will not only be more accessible but are willing to listen to your proposals. You can also find more private investors who better understand what you are doing. Some of them may be more than anxious to invest for a 12 percent return on their money. You can also find these people among your relatives, friends, and general contacts. A couple of good deals and you’ll have these folks knocking at your door.
2. Don’t forget the main thing banks want most- an exit
Bankers are probably among the most conservative, practical group of folks around. They need to know they will be covered should your deal go south. In other words, if you can convince them you have collateral to back yourself up in the form of property or money, they will, most likely, talk to you. This gets easier after you can present a good record of accomplishments.
If you’re not to that stage yet, don’t fret. Go back to #1 and get your money from outside banks first. Some investors do not deal with money coming from banks at all.
There’s an art to borrowing money. Just like anything else you do on this planet, once you’ve proven yourself doors fly open.