What is Wholesaling?

- - Getting Started

how-to-wholesale-real-estate

It’s when a wholesaler puts a property, normally distressed, under contract and assigns or resells the property to another investor. The end buyer investor uses cash, lines of credit or hard money loans to close on the transaction, which allows for quick closing on properties that sometimes need repair.

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The 2016 Mastermind

- - Entrepreneurship

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This is me and some of my most successful clients and partners golfing today at the famous Coeur d’ Alene golf club.

The times have changed, but the real estate climate remains profitable. What’s more, is this week has given me an opportunity to reflect. Today, 7 people have joined me here in Coeur d’Alene Idaho for our Mastermind session.

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Why do people borrow private money?

- - Getting Started

 

"WHY" 3D text surrounded by question marks. Part of a series.

While institutional lenders are very picky about the borrower and the property, private money lenders look at the appraised value, the borrower’s experience; not credit, the equity in the property, and the exit strategy. All conventional banks are going to underwrite you as a borrower. Private money lenders underwrite the deal for the collateral or the security. It’s a very different ballgame.

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THE BORROWER, THE LENDER, THE BROKER

- - Entrepreneurship

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This is an excerpt from the new book “How To Master the Art of Brokering Residential AND COMMERCIAL Private Money”:

To understand private money brokering you need to understand relationships among the three key roles, why they are involved in private money lending, and some key characteristics that can help you find likely prospects. In a nutshell we are talking about someone who needs money, someone who has money and someone who brings those two together. Let’s go into more detail about each participant: the borrower, the lender and the broker.

Who is the Private Money Borrower?

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Meet the Loan Processor

- - Communication

Yesterday, we talked to Bill Koder about how to ensure that the borrower and the broker do their part to make sure that loans close quickly. They key was organization and timely delivery of the necessary documents.

Today, let’s take a look at what “loan processors” do seeing that they’re also key to getting your loan closed in a timely fashion. If you have closed a loan, you may or may have had a discussion with Haley Welton; our loan processor. We took a minute to ask Haley what the main issues or objections that causes a loan to be stopped or slowed down.

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Out of State Free and Clear Owners

- - Flipping

(FILE) A for sale sign sits on the front lawn of a home in the Washington, D.C. area.

This is one of my personal favorites. If the property is vacant, abandoned, and in disrepair, and it’s owned free and clear, and the owner lives out of state, they do not love this property and it is blatantly obvious from the condition. If there is an underlying mortgage against the property that is current, obviously they see enough value in the property that they continue to pay the debt service monthly. If the property is in disrepair, they continue to pay the mortgage because they don’t want to lose the property to foreclosure, but they probably lack the monies necessary to go in and fix it up and retail it for maximum profit.

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How Does COGO Capital Work?

- - Getting Started

HOW-DOES-IT-WORK

A real estate investor identifies a great real estate deal in a good equity position. The real estate investor puts the deal under contract and fills out an easy one page application, which you can view at www.cogocapital.com. COGO Capital then reviews the application and contacts the real estate investor for additional information. COGO capital researches, reviews and assembles all the due diligence items, which includes title insurance and a third party appraisal. Secured Investment Corp provides the loan package to a select lender’s network. One of the lenders who likes the parameters agrees to lend on the deal. Secured Investment Corp. then works with the select lender to wire funds to an outside escrow agent who prepares closing documents which are sent to a closing agent. Loan is closed and Secured Investment Corp sets up serving payments. Borrower makes monthly interest payments into the serving company who then pays the lender. Borrower pays off the loan and the lender and the borrower do it all over again. It is a constant cycle. 

We have also put together what we call our high yield fund…………

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