Real Estate Investment

Posts Tagged ‘mortgage investor’

When a Real Estate investor calls on a private mortgage lender, most of the time, the lender is likely to refuse to sell his/her private mortgage notes. When the private mortgage lender is not willing to sell the notes, it does not yet mean that there is no deal.

How to respond to private mortgage lenders not willing to sell?

If someone says no to you, what should be your response? Response to no comes in many forms. But, in the case of private mortgage investors, if a private mortgage notes lender says no to the investor, the response to no should be:

“may I leave my name and phone number with you should your circumstances change in the future?”

This response to No is also popular in the sales professions. If someone is not interested right now, maybe he or she will be interested sometimes in the future. It does not hurt to just leave your details with them. Sales professionals learn early on that no does not always mean no.

It just means ‘not right now’. No can also imply an invitation to explain more. Nice sales people learn to read the body language and the tone of voice to decide when to keep talking and when not to.

Retain the information on private mortgage notes lenders who say no

When a private mortgage notes lender says no to a private mortgage investor, it is not a total lost. The private mortgage investor should retain the information on the private mortgage notes lender who says no now. The private mortgage investor can stay in touch with the private mortgage notes lender. He or she can even contact the private mortgage notes lender every few months with a postcard.

While on the phone with the private mortgage notes lender, the private mortgage investor can even ask if he or she could keep in touch with the private mortgage notes lender in case his or her situation changes.

Private Mortgages as investment can be very lucrative. When you know what to do to make money with Private Mortgages, it is easy to repeat the process and make even more money. The ability to negotiate is key to investing in Private Mortgages.

How to profit from Private Mortgages as invesment?

The first step in investing in Private Mortgages is to locate an interested private mortgage lender. A private mortgage investor needs to establish that a private mortgage lender is interested in selling his/her private mortgage notes as well as found another Real Estate investor who is interested in buying the notes. Once an intersted seller and buyer are found, the investor needs to:

• Get an offer for the private mortgage note from the interested private mortgage buyer
• Call the private mortgage notes lender with the offer less the commission of himself/herself.

For example, if the private mortgage buyer offers $100,000 for the private mortgage note with balance $120,000, the investor should call the private mortgage notes lender and say:

“My partner and I would be willing to pay you $95,000″

Then the investor should let the private mortgage notes lender respond. Be SILENT while the lender is thinking about the offer. Do not even breathe! See, Contacting Private Mortgage Lenders.

Each time a Real Estate investor calls a private mortgage lender or a private mortgage note holder, the lender may either be willing to negotiate, listen to the proposal and agrees to sell, see Private Mortgage Lender Willing to Sell, or he/she is unsure of the situation and needs more time to decide, see dealing with private mortage lender, or lastly he/she is opposed to selling, see Private Mortgage Lender Not Willing to Sell.

The objective of a private mortgage note investor is to pocket the difference between the price the buyer is willing to buy and the price the lender is willing to accept. The larger the difference, the more profit for the investor.