How to Get Private Money for Your REI Deals in 7 Days FLAT

Just opened my email box to another killer testimonial this morning …

You’ve gotta check this out. This dude bought our Private Money Blueprint (PMBP) on Feb 18th … and within 7 days, locked up $100K in private money. And not only that, he got 3 referrals!

Check out the screen shot of his email …

Did you notice that his lender told him, “Let’s start with $100,000 and if it looks good, we’ll go big time.”

How about that!

This is another example of real world every day people getting private money in today’s market.

Happy Private Money Getting!

Patrick & Trevor
The Private Money Blueprint Team

** These private money results are not typical. The “average” person doesn’t take any action, and therefore, gets no private money.

All Eyes on the Job Market

by Tim Krulia – Private Money Blueprint CFO

As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s an article I found which is all about the job market and other economic news…

This coming week is packed full of big economics news with the “main event” coming on Friday when we get our February job’s report.  This article is great because it lays out the economic indicator news that’s to be reported each day of this week.  It also has a little nugget of info about what’s going on with Greece and their financial mess.

How’s this for great news!!!

On the upside, the fourth-quarter reporting period has been positive, with earnings jumping 201% from a year earlier and 16% from a year earlier without the financial sector. Last week’s revision to fourth-quarter GDP growth was better than expected, with the economy rising at a 5.9% annualized rate, the fastest pace in six years (Twin).

Even if the expert’s expectations for the reports this week are mixed; we’ve had something to be pretty happy about.

I’m still hoping that we’ll keep the unemployment rate under last month’s figures.  If you look at the chart (below) of the past decade there is certainly a peak that’s forming right now.

I’m still super hopeful that this next round of unemployment numbers comes in lower than last month’s 9.7%.  If bit by bit, the unemployment rate keeps trickling down (even if it’s just a 10th of a percent each month), this marginally good news COULD go from something only economics geeks like me blab about to mainstream excitement.

Let’s say over the next 90 days the unemployment rate keeps falling (even by the slightest of margins), the media will probably take hold of it and do what they do best; make mountains out of mole hills!  I hope this all comes to pass because I could easily see the media reporting this “GREAT NEWS” (well, not really considering the unemployment rate would probably still be over 9%), and pound it into all our recovery hungry heads that the recession is over and it’s time to get back to spending!

Think about it, it would likely drive consumer confidence and we’d see recovery on both the consumer side and business side. Maybe it’s a bit artificial, but the spending could drive more job creation and drive us right on out of the current struggles.

As soon as this happens, we as investors will be happy to see mortgage applications increase, nudging housing demand back a little, thus increasing home values a bit.  Interest rates would start to go back up a hair (but not necessarily for private money loans because we are independent of the dang banks, of course), banks would get a bit more profitable (great for Wall St.) and then POOF….we’re really truly on the road to recovery in the real estate market.

One other thing to note about my little hypothesis is that in this recovery relay race, we’d finally take the baton back from the government and they would be able to slowly retreat from all these expensive stimuli packages.

What do you think?

Private Money On Demand Training – Private Money Through Public Records

So, you think you’ve tapped out your “warm market” and are already networking like crazy? (the reason we say “think” is because theres always new networks and “circles of influence” you can tap… ALWAYS).

Well… how about finding private lenders in YOUR MARKET who are ALREADY PRIVATE LENDERS for other real estate investors?  That’s what the PMBP P.M.O.D. Training and “Swipe and Destroy” Methods are all about.

In the training below you’ll learn:

• How to use the public records to find active private lenders in your area
• What to search for in the public records to bring the lenders from “behind the curtain”
• What to do (and NOT to do) to contact these lenders to stay SEC compliant
• What one “clearinghouse website” to go to find your public records online (this is a cool tip)
• How to build credibility w/ your private lending prospect
• How to “covertly” get lenders into your program by getting them on your cash buyers list
• … and more cool actionable stuff.

Financing Buys Better Deals… NOT!

by Tim Krulia – Private Money Blueprint CFO

As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s an article I found that reinforces the concept that cash is king, even in a buyer’s market.

Hey there my friends, this week’s spotlighted article is titled, “Homebuyers Finding that Cash Really is King; Even in Buyers’ Market, Many Can’t Close Deals as Investors Snap Up Homes.”  The later half of this week’s article is a tangent of comments made by the author in the article. If you’re into studying unemployment, you may dig this hard core.

If this article doesn’t edify the fact that private money is a smarter route to take for an investor to acquire real estate than traditional methods, than I don’t know what does. Check this stat out from the article!

“Across the country, some 22 percent of all previously owned homes sold in December were purchased entirely with cash, up from 16 percent a year earlier.”

I guess this is no real news to the Private Money Blueprint family because we know that cash is absolutely king in the real estate world. I guess there’s just more people that are getting wise to the facts and using cash instead of banks. The author of the article hits the nail on the head mentioning that buying with cash gets investors better deals vs. financing because it doesn’t require a bank’s approval & its way faster and easier!

Here’s where I’m going to run off on a tangent and jump on my soap box a bit. There was mention in the article of an underlying issue brewing from the contents of this article. The author notes in the article that as inventory of homes for sale drops, it’s harder to get good deals unless you are a cash buyer.

What About The Drop In Inventory?

Duh, cash is king, we know, but what about the drop in inventory?

I think we’re going to start seeing inventory decrease more and more in 2010, but not as much for the author’s reasons (holding up foreclosures for hopeful mortgage modifications). Instead, I think we’ll have the job market to blame as it rebounds (finally).

Keith Hall, Commissioner of the Bureau of Labor Statistics on Friday, February 5, 2010 announced before the Joint Economic Committee (US Congress) that, “The unemployment rate declined from 10.0 to 9.7 percent in January“.

I think that if our government plays it right, we may have just come off our unemployment peak for this recession! What do you think?

Unemployment Stats…

Check out this Unemployment Rate chart from the Bureau of Labor Statistics.

I know it’s too early to tell and all, but I like what I’m seeing. The government is starting to really get it right in my perspective!

Did you listen to the emphasis on job creation in the State of the Union speech the other day? How about the possible $5,000 tax credit given to employers for each new employee they higher up to $1/2 Million per company that’s on the table in Washington?

It goes without saying that if you’ve been reading my columns I am a staunch believer that job creation and lowering the unemployment rate is the #1 driver that’s going to get our economy back to solid ground.

Finally, we’re looking to set aside something like $33 billion for job creation as a stimulus instead of giving $800+ billion to the banks last year (who aren’t as important to us private money guys anyway). If the government can get this stimulus passed and others follow, I’m excited for my optimistic educated guess of unemployment recovery in our midst to turn into reality.

Where this all looks like it’s leading is a potential uplift in the real estate markets… a slow one… but potential uplift.  However, a huge factor in moving properties on the market is the availability of financing for the end buyer (which banks are still very tight with their money)… but when you have the cash (not necessarily your own… but funds from private lenders) available to buy properties today you’re ahead of the game and can capitolize on the best deals, the quickest, with the most profit spreads.

————————————– Highly Recommended ————————

HOW TO GET PRIVATE MONEY IN TODAY’S MARKET – I you’re serious about having a profitable real estate investing business that gives you personal freedom with less stress like many of our students… head on over here to learn how we’re able to get private money (over $11,400,000 in private money in the last 18 months alone between us and our students)… Go here now.

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Foreclosure Rate Comparison: FHA Loans vs Conventional Loans

by Tim Krulia – Private Money Blueprint CFO

As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s a video I found that compares the foreclosure rates of FHA loans and conventional loans.

Clark Howard is a famous consumer advocate who basically gives people great tips about how to spend or not spend their money.  This video is from Howard’s HLN TV show that aired a few days ago. Go ahead and check out the short video and come back to read the rest of the article here.

Back in my college years I worked at one of the Mid-West’s largest mortgage lenders.  This bank has a strong ethical reputation and is still doing great business today.  My job was mostly funding conventional and FHA loans.  By far most of the loans I worked on were “A paper” conventional loans, but there was the occasional FHA deal that popped up.

This was at the time that Sub-Prime loans were starting to get really ramped up.  One big difference between FHA loans and Sub-Prime was that FHA’s interest rates were most of the time WAY better for the borrower even though they both would approve borrowers with bad credit scores.

Where an average Sub-Prime 2 year ARM was starting at say 8 – 10%, FHA may have been close to half that rate!  If you had low credit scores and didn’t have much down payment $ to drop on the purchase of a house the decision was obvious; try for an FHA first.

Of the tens of dozens of FHA loans I worked on I remember seeing one closed FHA loan where the borrower’s middle credit score was in the mid 400s!  Don’t ask me how.  Yeah, I did a double take on that one and quite a few others.  The thing is though; there were lots of FHA loans that came though that had really low credit scores.

To comment on Clark Howard’s video, I’m not very surprised that FHA loans have gone to foreclosure in greater proportion than conventional loans.  It just makes complete sense because there were lots of REALLY low credit scores that were approved by FHA that probably wouldn’t have ever made it through as a conventional loan.

The great comment that Clark made is that he touches on FHA homeowner assistance or relief.  So if a borrower is having trouble making on-time payments, they can apply for help.  There is still a process of applying for assistance and as Clark says it may be getting easier to be given help, but it’s not automatic.

I don’t know to what extent it may be but there’s undoubtedly a red tape process to go though with FHA before MAYBE getting some help.

Here’s an interesting perspective on FHA, conventional & Sub-Prime.  Private money recruiters don’t need any of those options to begin with so let’s not worry so much about how to get FHA homeowner relief or a conventional loan modification.  I’d really enjoy seeing the statistic of how many private money “mortgages” went into foreclosure compared to FHA, conventional or Sub-Prime.  My guess is that private money loan defaults are a fraction of these other types of loans for one very simple reason; flexibility of terms.

If circumstances change for the worse and the private money borrower can’t fulfill the repayment obligation, the borrower and lender could probably just change the repayment terms.  That could potentially be as easy as making a single phone call!

Some banks will do modifications under somewhat peculiar terms for only people that fit into a certain shaped box.  It might just be staggering to see how much less private money lending may have vs. traditional lending of experiencing payment delinquency or foreclosure.  All that boils down to is that if our assumptions are true than, private money lending is LESS RISKY.

Again, I don’t have the stats to back up my estimation so if anyone has ever seen that statistic, please share it with me so we can share it with the community!  Man, it would sure be a great selling point when you’re out there recruiting private dough!  Wouldn’t it?

Private Money Power Persuasion Phrases that Convert Prospects to Lenders

Wouldn’t it be incredible if you could make a few simple changes in how you communicate your private money lending program and double even triple your conversion rate?

Heck yeah it would!

Well, I’m about to tell you – what took me years to learn through trial and error and countless hours of study in sales, marketing, psychology, persuasion, communication – 3 word-for-word “private money getting” power persuasion phrases … phrases that immediately disarm your prospect, gather needed information, and put you in the most powerful negotiating position possible: the reluctant role.

While these power persuasion phrases may sound simple, do not mistake associating simplicity with small value.

Remember as Albert Einstein said,

“Everything should be made as simple as possible, but not simpler.”

Or as Leonardo Da Vinci put it,

“Simplicity is the ultimate sophistication.”

Put these simple private money lending power persuasion phrases to work for you … and start getting the private money, the cash you need for your deals.

Private Money Lending Power Persuasion Phrases

Watch the video below …

That was a small clip from my private money getting presentation I did recently at Josh Brown and Lou Castillo’s event. I’ll be releasing more private money videos soon … so stay tuned!

Put your questions, comments, and feedback in the comment area … and let me know how I can help.

Happy Private Money Getting!

~ Patrick

P.S. Want more great private money getting videos? Click Here to Subscribe NOW!

Interest Rates Flat and Mortgage Applications Down 10.9%

by Tim Krulia – Private Money Blueprint CFO

As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s an article I found that raises an interesting question about the relationship between interest rates and mortgage applications.

This week’s article is a little fun because it also comes with a WSJ.com video interview of Dave Blitzer, Chairman of the Index Committee at S&P. The article’s title is “Week-to-week mortgage applications down 10.9%: MBA, Interest rates charged on fixed-rate home loans virtually flat last week,” written by MarketWatch reporter, Amy Hoak.

Just to make sure we’re on the same page, the MBA (as referred to in the title of the article) in this case isn’t referring to a Master’s Degree in Business Administration; instead, it is the Mortgage Banker’s Association.

“The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., MBA invests in communities across the nation by ensuring the continued strength of the nation’s residential and commercial real estate markets; expanding homeownership and extending access to affordable housing to all Americans and supporting financial literacy effort.”

– Source: http://www.mbaa.org/AboutMBA

They also have a pretty kickin’ conference every year that our company used to attend when I was working in the mortgage business. It’s an excellent arena to learn about the cool inside scoop of what’s happening in that industry.

The MBA is reporting something pretty interesting from an economics perspective in the article. The number of applications taken in a week gives us a barometer for demand in the market for mortgages. If applications increase, we know that there are more peeps out there looking to buy or refinance their houses (increased demand), and of course if applications fall, we know that demand lowered.

Normally, we look at interest rates and see a consistent inverse relationship between interest rates and demand. As an example, if interest rates rise, we would expect demand to fall because it becomes more expensive (thus less attractive) to borrow money. Interest rates haven’t really fluctuated up or down so we would expect applications to also be consistent. The nuts and bolts of the highlighted article reports that interest rates have been flat but there’s been a drop off of mortgage apps by 10.9%!

How can that be you may ask? Well that’s the question the video interview attempts to ask. Go ahead and check it out here. Let me know what you think by leaving a comment on the blog.

Let me know if you think that a big part of this anomaly has to do with the shortage of supply of people out there that can qualify for a mortgage. I bet there’s a huge gaggle of Americans who want to buy, have tried to apply for a mortgage, were straight told to go fly a kite and have quit trying.

In theory, if there were a perfect supply of properties and demand of people looking to buy them, then what happens when there’s an increased number of folks that can’t qualify………..what makes up that gap? Well, I’d assume that the result is an oversupply of properties for sale, which drives the prices down of that commodity. The lower prices are what we as investors like to hear because it gives us a continued opportunity to buy better deals.

This anomaly in the market that was reported in this article is great news for the investor that uses private money because it leads to better deals to be had & since we are independent of the banks, they don’t hold us back from going ahead and gobbling them up!