Advantages of Using Private Lenders in Real Estate

Once you have your own business, you can get loans from banks, partners and you can use creative techniques to get money from sellers. But once you are self employed, it will be hard to get loan from banks to purchase properties.

Banks might take more time to process your loans and get the job done especially for old houses which needs to be rehabbed. This could be a drawback for people who are involved in rehab business. By the time you wait for bank loans, you could have got money from private lenders and have bought, fixed the house and sold it for a profit.

Private lenders will have money all the time and when a good deal is available, you can grab the deal while your competitors are waiting for bank loans. You could have closed the deal while your competitors are waiting for bank loans.

This major benefit will help you purchase a property soon without any delay. The other benefit is that you can make monthly payments with an interest rate just like you pay in banks. Even some private lenders don't ask for monthly payments and you need not pay them until the property is sold. This benefit will result in improved cash flow and you need not make monthly payments.

Pros of Using Private Money in Real Estate Investments

There are lot of advantages of using private money in real estate investments. If you are not sure about the reasons to use private money, please check here:

* You can get the money easily at a discount
* Credit check is not needed and it won't appear on your credit report
* unlimited funds
* you can control the money and have your own rules
* you can help your friends and family when needed
* more cash flow
* flexible
* Get more confidence in making offers
* saves you money
* cheaper than having a partner
* gets you more profit in brokerage business


When you find a deal you should move fast and grab the deal. Many investors would have missed deals while waiting for loan from banks. Once you have private money, you can go ahead and make an offer as soon as possible.

Tips to Consider Before Investing in Real Estate

Many people would like to stay in apartments but when it comes to investing they go back because of the lack of knowledge. Finally they end up investing in single-family homes and few other first time buyers will go for apartment or condos because they doesn't require more efforts as such houses. People who enjoy certain lifestyles will go for apartments because the security will be high.

When you are thinking of purchasing an apartment, you need to consider the following tips to get the best profit out of that investment. The things to consider are:

• Price
• Number of units
• Location of the building
• Condition of the building
• Maintenance expenses

Price and the number of units are the foremost things to consider because its always good to analyze the budget when investing in apartments. The other things which you need to consider are:

• age of the building
• Sq. footage of units
• Features and Amenities
• Assessment of the property
• Whether pets are allowed
• Gross expenses
• Net income
• Monthly Rents and average rents in the area for similar properties

Apart from these, you should also consider the demographics, crime, transportation facilities and neighborhood.

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Flipping Properties for More Profits

Real estate is a business which is bought and sold every day. With just little information many people become real estate agents and help facilitate a sale by finding a buyer for a seller hereby getting commission.

Getting a real estate license is very simple but to succeed in the strong competition among other real estate agents requires a lot of hard work and struggle. They need to continue education classes and follow the guidelines set for them.

Flippers are investors who buy properties with the intention of selling it for a profit. A flipper will only spend short time with a deal and the profit potential will be much more than the agent's commission.

Three Types of Flippers

Scout

Scout is a person who finds and sells deal for a profit. Their job is to gather information and provide it to others for a fee. This fee depends on the price and profit potential of the property. Scout can make about five hundred to one thousand dollars on every deal.

Dealer

A dealer locates a property and signs a contract with the owner. Apart from providing information, he has control over the property and he gets more profit and assumes more risk than a scout.

The Retailer

A retailer buys the property from a dealer and fixes it up to sell it for a full price. Compared to other flippers, retailers invest more money and can make the largest profit on a deal than others. A retailer takes months to realize his profit whereas a scout or dealer makes money within few days.