Key Point: When you work with private lenders always strive to under promise and over deliver.

The bottom line is to look at what you are offering from the lender’s perspective. What would you be looking for if you were going to loan money to a real estate investor? What security instruments would you want to see in place? What assurances on time would you find appropriate? How would you want them to handle challenges along the way? What would make you want to do it all over again? When you think like this, your pursuit of private lending will be much more productive, profitable, and repetitive.

The idea of using private lenders is nothing new in the world of real estate investing. Successful investors have been raising and using private capital for decades and it is only now starting to filter down to the novice investor as being something of great importance. Does this mean that it should be something you look at carefully? Absolutely. How fast do you want your business to grow? There’s the slow route and the progressive fast track and private lending can quickly put you on the fast track to success.

Like any business decision, the choice to pursue private lenders comes with its upsides and downsides. The upsides are pretty clear, as there is a virtually limitless supply of capital that is out there for the taking. The downsides are few but the use of private capital does usually require that your business be a little more organized to have the most success raising funds. For example, your credibility kit and business plan are of high importance to a potential private lender, even if they might not be as important to other clients.

As far as managing the funding you do secure, be bold but also be smart about it. When making offers, consider that the quality of the deal doesn’t just affect you. When you are setting a budget for the deal, it is good practice to imagine yourself in the shoes of the private lender that is funding your deal. I find that when you look at private money as if it were your own, your decisions remain on a better plane and you are less likely to take unnecessary risks. People get funny about money sometimes but don’t let that in any way discourage you. This is a wonderful resource to pursue, and when you pursue it intelligently, the sky’s the limit.

As we approach another weekend, you may have some time to sit and reflect on different strategies to use for your real estate investing. May I offer some invaluable reading material?

Check out what I’m talking about at www.freemakemoneygift.com/Invitation.html