Real estate investors can raise money and get access to private lenders easier than you may have thought. The secret to getting the money you need quickly is NOT to use traditional lenders or hard money lenders.

Yes, I'm telling you this straight out, even though I typically help borrowers get financed with these types of lenders. Here's why...

Many investors contact me seeking funds for their repo or rehab projects. While hard money lenders and a few rehab loan niche lenders do have money to loan, many times the investor or project does not fit the lending criteria of the lender.

Such issues as the borrower’s liquid assets; credit score; income documentation; location of the property; minimum loan amount guidelines and the like result in the lender saying, “NO” to the request.

In my endeavor to help real estate investors find other ways to raise money for their projects, I have discovered three excellent strategies for getting the money you need without hassle and quickly, namely:

1. Building Your Own Corporate Credit
You can have access to $200,000 or more in 45 to 90 days.

2. Get All the Money You Want From People, Not Banks
Private lenders (regular people), who want a greater return on their money, than what their CD’s are giving them are ideal private lenders.

Also, people with self-directed IRAs are great private lenders looking for a better return on their money. These are the people who will beg to lend you money into the millions (no kidding) on your terms.

3. Social Lending Websites
Specialized websites are matching up private lenders (regular people) with borrowers to fund their real estate or business projects.

Be sure to download the White Paper Report on these 3 top ways to raise to money by clicking on the image above. I have much more detailed information in the white paper.

These Alternative Money Sources Have Many Advantages

Using these strategies for raising capital, you no longer need to jump through the hoops of hard money lenders for “loan approval” or max out your personal credit cards to raise money to buy that fixer-upper or spend money on repair costs – all the while jeopardizing your personal credit.

The strategies I recommend will also turn you into a CASH BUYER. That is a powerful position to be in. It can mean the difference between getting your offer accepted over other competitors that need financing and can’t close as fast as a cash buyer.

Strategy #1: Building Corporate Cash Credit
Real estate investing can and should be run like a business. As a business you can build business cash credit for all types of business related expenses. Imagine having $200,000 or more at your fingertips to buy a property for cash based on your sole opinion that the project is a good deal, not an underwriter’s opinion.

Use business credit to pay for rehab costs without using your personal credit or making any personal guarantees.

Use business credit to raise down payment money for larger commercial properties. Use business credit to pay for vehicles, equipment and anything else you need to run your real estate business.


More Benefits of Business Credit:

Separate your business credit from your personal credit.
Stop providing personal guarantees on business credit.
Create a new clean business credit profile.
Have a higher personal credit score by keeping business credit out of your personal name.
Convenience of doing business on credit instead of cash.
Establish credibility with vendors.
Have peace of mind, knowing business creditors can not attach your personal assets.
Increase cash flow by using credit instead of working capital.
Create a credit profile with the largest business credit bureaus in the world.
Get credit in the business name without ruining your personal credit and without personal credit checks.
Save thousands of dollars in interest payments by getting the best interest rates.

Click on the Button above to learn more about building business credit to invest in real estate.

Strategy #2: Get All the Money You Want from People, Not Banks
Could you use an unlimited supply of money to do all the residential and commercial deals you can find? If you answered, “YES,” then the easiest way to raise money (without credit or even a job) is to get it from regular people, not banks...and you’ll get it faster, easier and without limits as to how much you can borrower – think what you could do with that kind of borrowing power!

Using private lenders gives you all the advantages of Strategy #1: Building Corporate Cash Credit. However, using this second strategy of private lenders gives you a bigger advantage, and that is being able to raise an unlimited amount of money quickly, into the millions.

Now you may think that raising private money is as simple as asking your friends and family for money or putting an ad in the paper, but it is not as simple as that.

This strategy needs a proven turn-key system to work.

If you make the wrong first impression on your potential private lender, you’ll be dismissed as an amateur or fly-by-night – and it will be difficult to ever reverse that perception. Lenders need to trust you to complete your renovations, make timely loan payments (if there are any), and pay off the loan balance as agreed.

A proven private lender system will make your phone ring off the hook with prospective lenders, win their trust and create a limitless supply of money – ready to be loaned on your terms.

Click the Button above to learn more about getting all the money you want from people for all your real estate deals.

Strategy #3. Social Lending Websites

Across the world social lending is being utilized as an alternative to traditional bank and personal loans. Social lending sites connect individual lenders and borrowers through a peer-to-peer network that is streamlined, efficient, legally formatted, profitable, and most importantly - helpful.

Social lending sites provide an opportunity to reduce loan rates and loan costs for borrowers and provide a rate of return for lenders which may beat investment alternatives.

Case Study: Entrepreneur Tim Murphy went shopping for financing late last year to open a retail gourmet-popcorn store. Armed with experience running small companies and a detailed business plan honed with the help of his local small business development center (SBDC), Murphy was optimistic.

"I went to national banks, regional banks, small banks - everyone advertising that they want to help the little guy get started in business," Murphy said. "There were about 12 banks I made presentations to. All 12 turned me down."

Frozen out at the banks, Murphy went online to check out a suggestion from his SBDC business consultant about person-to-person lending. He found LendingClub, one of several Internet ventures that directly connect borrowers to individuals with cash to lend.

Murphy put up a LendingClub profile describing his business plan and seeking a $25,000 loan. Within two weeks, he had it, cobbled together from 74 lenders investing amounts that ranged from $25 to $12,450, at a 12.49% interest rate. Tim Murphy opened its doors in Marietta, Ga.'s Historic Square in April.

Download the White Paper Report for more details and a list of social lending websites. Scroll back to the top of the page and click on the Download the PDF image.

Best wishes in your goals to build wealth through real estate investing. I’m confident these three recommended resources will help you raise money for all your deals and also help you avoid costly mistakes and dramatically shorten the learning curve.

Naomi M.