Search for properties, send out rapid offers with a contingency clause (so that you can pull out at any time). Hit as many properties as you can. Speed is key, because you can analyze the offers AFTER due to the clause. And this can help you beat other investors in the market. Use hard money to finance the deal - cash offers will also make it more likely that you will win the deal over other investors.
Why? Because the homeowner won't have to worry about a check bouncing in 2 weeks... and... they get the cash right away. You want to make sure you dodge the hard money lenders that are actually selling bank loans. You can tell if Freddie Mac or Fannie Mae is sub-letting the loan (I think that's what it's called?) to this hard money firm or w.e company it is if the interest rate has a random interest rate like 19.32%, etc.
Typical hard money lenders that aren't just selling off bank loans use rounded decimals on their interest rates (usually). So it would be 19%. Some hard money lenders won't even check your credit or even care as long as the numbers on the deal make sense. If the value is there, they will loan.
How do you find hard money lenders? Google Maps, auctions, REIA meetings, etc. If you're at an auction, network with people. Grab their card first and put it in your pocket, then ask if they're a hard money lender after. Then ask who their hard money lender is. Reason why you put the card in your pocket is so they can't take it away after.
Then it doesn't matter if they don't tell you or not. Just go to the county registrar and find all the properties recently sold by that person. From there you can trace down the hard money lender that covered the mortgage.
I mean, this won't make you a billionaire... but it will help you get started (hopefully). This is just what I've learned from a client of mine.
Why? Because the homeowner won't have to worry about a check bouncing in 2 weeks... and... they get the cash right away. You want to make sure you dodge the hard money lenders that are actually selling bank loans. You can tell if Freddie Mac or Fannie Mae is sub-letting the loan (I think that's what it's called?) to this hard money firm or w.e company it is if the interest rate has a random interest rate like 19.32%, etc.
Typical hard money lenders that aren't just selling off bank loans use rounded decimals on their interest rates (usually). So it would be 19%. Some hard money lenders won't even check your credit or even care as long as the numbers on the deal make sense. If the value is there, they will loan.
How do you find hard money lenders? Google Maps, auctions, REIA meetings, etc. If you're at an auction, network with people. Grab their card first and put it in your pocket, then ask if they're a hard money lender after. Then ask who their hard money lender is. Reason why you put the card in your pocket is so they can't take it away after.
Then it doesn't matter if they don't tell you or not. Just go to the county registrar and find all the properties recently sold by that person. From there you can trace down the hard money lender that covered the mortgage.
I mean, this won't make you a billionaire... but it will help you get started (hopefully). This is just what I've learned from a client of mine.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
