How To Find Private Lenders From Public Records
|How do you find private lenders? Private lenders are the key to keeping the bucks flowing so you can keep your investment machine chugging along. And amazingly enough, they are incredibly simple to find - if you know where to look. Fortunately for you, I'm about to tell you. |
Why Investors Need Private Money
Before I do, let me tell you why you need private money lenders. First and foremost, you will pay less money for your investing dollars. Hard money lenders have their place, but why pay anywhere from 12 -15% plus points if you don't have to? Private money lenders will accept anywhere from a 4 - 10% return on their money.
Private money lenders also allow you to acquire properties without banging your head against lender-imposed limits. Many investors don't know there is a limit to how many mortgages you can have before commercial lenders decide you are too much of a risk. The limit has been as high as ten mortgages and as low as four. Seriously? If you're an investor, a portfolio of 8 - 10 houses is a starting point, not your investment ceiling.
Best of all, private lenders, especially those you have built a strong relationship with, can pull the trigger fast. They know you, they know how you evaluate deals and they can sign a check (or send a wire) without blinking.
How Do You Find Private Lenders
So how do you find these investors? I like to shop close to home. Having private money investors from my local area has a couple of benefits. First, it's easier for them to meet me, see that I'm a real person and take a look at what I've done. It creates a comfort level when someone is handing me money. In a manner of speaking, they know where I live. Another benefit is that their money is close by. Picking up a check or getting money into my title company's escrow account is just easier when everyone is local. Sure, I'll take long distance money, too! But local is a good place to start.
Go online to your county Clerk of Courts office. If you can't access the records online, you're going to have to get your butt down to the Clerk of Courts office. It will be worth the trek, I promise you. It seems like every county is set up a little differently and some are easier to work with than others, but here's the basics: 1. Go into the "Search Records" function. You may need to sign in, click to agree to their terms or jump through some other minor hoop. It's all good.
2. In most of the search forms, you can set the parameters of what you're searching for. In my local database, I can search by last name, document type and/or category and dates. I set my search for "MORTGAGE" records and I set the search dates for the past four years or so. A lot of people were lending money in the run-up but they are not lending money now. In order to save time, I only search for dates after the economy crashed, from about January of 2009 to the present. These people still have money to put out.
3. In some counties, you need to enter a name or the first three letters or a name. Don't let this stop you. I go with common names: Jones, Smith, Harris, Turner, Johnson. I type in the first three letters (or the whole name if it's required).
4. Scan the search results for names. Ninety percent (or more) of your search results will be traditional lenders -- banks and known mortgage originators. That's fine. You're looking for the names of individuals or what sounds like a small company.
5. When you find an individual name, click on the document and bring up the mortgage. The amount the private person has loaned is usually on the first page. This gives you an idea of how much money they like to loan. It almost always includes the address of the person loaning the money. Copy it down!How To Approach A Private Money Lender
I put the names and addresses of private lenders, as well as the amount they have loaned on an Excel spreadsheet. From there, I send out a simple letter, introducing myself as a local real estate investor and telling them a little bit about me, including the fact that I work with private investors. I give them my contact information as well as my website address so they can see what I do. Then I simply ask if they'd like to be informed of any investing opportunities that I come across.
I always follow up with little "touching base" notes - at least every other month. I don't clobber them with a credibility kit right off the bat or press for money right away. Think of it as a dating game with someone you really like and don't want to screw up on. Go slow, don't scare them off and let them see the value of what you do. True players have their own parameters of what they look for in a deal. If you can, meet for coffee and talk about what they like to invest in and what kind of returns they like to see.
There's a FORTUNE sitting in public records - all the money you will ever need for your deals. But if you don't ask, you don't get. Why are you still looking at this page?? Click on over to your local Clerk of Courts site NOW.
|As a veteran of the armed forces (NAVY), Cody learned that ethics, honor, and commitment can tell a lot about a person. After being released with an honorary discharge, he attended ASU, receiving a degree in Finance (Magna Cum Laude). Cody then received his real estate license 3 years after he first began investing in real estate because he was tired of working with horrible Realtors that were just trying to make a quick commission.|
Cody began focusing on different strategies to help clients Avoid Foreclosure. Cody worked with underwater owners arranging short sales. This led to the development of his Reverse Short Sale Secret. Cody continues to buy and sell millions of dollars worth of real estate every year. In addition he has created a series of free real estate investor training tools for new investors.
Cody trains and mentors a handful of dedicated investors. When it comes to succeeding in real estate investing, Cody grows daily and helps others to do the same. Cody breaks the silence on methodologies that have launched successful real estate investing careers. He explains the top four ways to amass real wealth using real estate whether you are a new or a seasoned investor. His approach is sound and his presentation is clear and concise.
Cody Sperber is recognized as one of the young guns of real estate investing. He thrives on encouraging and educating fellow investors. Cody Sperber's philosophy is to give you all you need to be successful before he ever requires anything on your part more than the commitment to learn.
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