Your Skin: What’s your contribution?
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by: jkstrahan
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We get multiple requests each day from people looking for a variety of loans. However, what most people seeking these loans don’t understand is, just because they are dealing with a private money lender doesn’t mean they will get money just by asking for it.
I’m not your mommy…
Most of the time the call goes like this:
Caller: Hi, I need a private money loan for a property I am buying from the bank.
WealthGiveAway: Okay… Tell us a little more.
Time frame; purchase price; loan needed; rehab funds needed; etc?
Caller: Well, I am buying it from the bank and it is worth $750,000, but I am able to buy it for $500,000. So, I need a loan for $500,000 to buy the property and then another $100,000 or so to rehab it.
WealthGiveAway: Okay, How much money are you putting into the deal?
Caller: None, I’m completely broke. That’s why I’m calling. I need a private money loan for the whole purchase price. But, the property is worth $750,000.
Let’s stop the call right here.
This is where most applicants lose contact with reality. First, just about every lender I know is going to want the borrower to have some “skin in the game.” Translation, you have to put some cash into the deal for us to be involved. Yes, I know, you believe that the property is worth $750,000 fixed up or even more than you are paying for it. Without something to keep the borrower honest and tied to the property (aka: Cash into the deal), lenders will walk from the deal. Using a private investor to obtain funds doesn’t mean that you simply ask for the money, tell the lender that you are getting a smoking deal, and then they cut you a check.
I don’t think so.
1. You need to put up collateral or cash.
2. You need to excite us with the possibility of a quick turn around time and the profitability of the deal.
Always. Always. Think first how it will benefit us. Desperation comes across loud and clear every time.
Do you see? We want to loan out our funds again and again to you and others.
Think about your private money partner first and you cannot lose.
Copyright 2009 Kathy Strahan
About the Author
If you need money for your business or investments, Kathy Strahan is the premiere private money partner able to lend you a few hundred dollars to a few hundred thousand dollars without all the red tape and bureaucratic rules of traditional lenders. Kathy works with entrepreneurs like you with any credit score, any legal opportunity and can move quickly. Secure your profits with her money at wealthgiveaway.com
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