Finding Good Investment Real Estate Loans

Finding good investment real estate loans is not easy, but not impossible either. There’s a trick to finding all of the good ones.

Any real estate investment loan you find in a bank is going to be rigged against you… How else do you think the bank profits? They know that giving you a mortgage loan refinance on a real estate investment property will be risky but profitable in our economy, so they add on huge fees, and if you fail to make any money on your venture, they still want those huge fees.
 
Meanwhile, most hard money lenders will be more flexible in terms of only needing their cut when you see a profit… But oh boy do they want a cut! Their fees make the bank look downright generous, and that’s the price you pay for the lowered apparent risk.

So where do you find a decent real estate investing loan?

Ask your local real estate investment club. –Don’t ask them for their favorite bank to lend you money, or for an ‘honest hard money lender’ to make the loan… You shouldn’t be interested in those unless you weren’t in it for the money anyway.

Ask the person you find there if HE or SHE wants to back your investment personally.

Think about it… Who goes to those meetings? Sure there are a few nobodies who are trying to break into the group having never invested themselves before, but overall, the majority of Real Estate investors excited enough about it to actually attend a club for it are the very ones who have invested before successfully… Which means they have access to large sums of cash.

So here’s how you do it. Look online until you find your local big city real estate investment group. Go in person one day and ask the person running the club for his or her opinion of your investment property. You shouldn’t give the address out of course, but tell them which part of town it’s in, how much you can grab it for, what repairs it needs, and so forth, and if that person knows enough to become president of the club, then they’ll certainly know if you’ve got a good deal on your hands.

If the prez’s funds are tied up at the moment, his or her response will be along the lines of “Try Mr. Grizwold over there in the blue shirt… He loves deals like those.”

After you talk to a few people like that, you’ll either know if your property isn’t that great of a deal, (therefore you might think twice about purchasing) or you’ll easily find someone that’s willing to offer you a better rate than the bank or hard money lender would for any investment real estate loans.