Yesterday I met a guy lets call him Stan who had a sad tale to tell. Evidently, Stan applied for a Harley-Davidson loan and was turned down by some scrawny kid in the loan office. Stan was understandably frustrated, but he could have prevented this by using private money for real estate investing.
The thing is, Stan is a long-time real estate investor with a very active credit file. Mortgages going on, mortgages coming off, every time Stan buys or sells a house (which is frequently) his credit gets whacked with a new loan or inquiry. So, now that Stan wants to buy something for himself, he has to kowtow to some obsequious little snot of a loan officer. Poor Stan.
Stan wouldnt be in this situation if he had made a little effort to set up a network of private lenders. His credit report would pass the closest scrutiny because private loans wouldnt appear on his report, and private lenders usually dont run credit reports.
Private money for real estate investing is like having a golden ticket. Private lenders make loan decisions based on their relationship with YOU, and based on how good the deal is, not on your credit report.
So, your credit wont be weighed down by a whole bunch of mortgages and inquiries when you want to borrow money for something other than real estate, like a boat, car, RV, or a Harley.
Isnt that why youre investing in real estate in the first place? A little extra to afford a few luxuries? Absolutely, and when the time comes to spend some of it, you dont want to hear some pimply-faced kid say, Im sorry, do you?
I think I know the answer to that question already. So does Stan.
Reason 4 to use private money for real estate investing? Keep your valuable credit available for other things.
If you want even more great information on reasons to use private money for real estate investing then try http://www.private-money-real-estate-investing.com/why-private-money.html for more.
Now, go make more offers!
There are lots of great reasons to use
private money for real estate investing. For more on
private money for real estate investing try http://www.private-money-real-estate-investing.com.
