Mortgages for real estate investing have always been harder to obtain from conventional mortgage lenders and banks. However due the recent credit crisis it can be even tougher than ever to get conventional mortgage loans for your real estate investing business. Fortunately private money lending has emerged as an incredible way for those flipping real estate to fund their deals.
Many use the terms ‘hard money lending’ and ‘private money lending’ interchangeably when it comes to real estate investing. There are many hard money lending companies across the US that offer asset based mortgage loans for flipping houses. However in order to really get access to the maximum amount of funds and better terms savvy real estate investing companies and individual investors are turning to true private money lenders which are simply other individuals with large amounts of cash to invest. These private money lenders do not want the hassle or to take the time to be involved in active real estate investing and can benefit by making loans with solid returns.
Unfortunately many new to real estate investing find it difficult to find private lenders or entice them into making loans. Of course the biggest obstacle is building trust with a stranger who you are asking tens or hundreds of thousands of dollars from. However, if done right you can easily position yourself to be sought out and easily attract many private money lenders wanting to loan you their capital for your real estate investing projects.
Taking the extra time to make sure your website has a polished, professional look and feel will go a long way. Then consider creating a professional looking prospectus type proposal that shows that you have taken the time to develop a real system. However most the most powerful element you can add is real case studies and examples of your real estate investing successes and the returns that you have achieved for yourself and others. To attract and reach private money lenders you can choose between investing in Internet marketing like PPC campaigns, article marketing and forum posting or acquire lists of individuals that are prime candidates and reach out to them via email and direct mail.