Real Estate Investment

Posts Tagged ‘Private Mortgages’

When a private mortgage investor has obtained the phone numbers for private mortgage notes lenders, he/she should make a phone call to each private mortgage lender. It is handy to have a phone script such as the one shown below when contacting private mortgage lenders. The private mortgage investor can say something like the script shown below.

What to say to a private mortgage notes lender

Dealing with private mortgage lenders on the phone

When confronting a private mortgage lender on the phone, the private mortgage notes lender will either say to the deal:

• Yes, see Private Mortgage Lender Willing to Sell
• No, see Private Mortgage Lender Not Willing to Sell
• Maybe, see Dealing with Private Mortgage Lender

On top of these three answers, you may get something like “it’s none of your business”, “how did you get my phone number”, or even “don’t ever call me again”. Don’t be discouraged. It is the nature of the game. Sales people get much worse responses than that yet some succeed.

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.