Comments on: How to Explain the “Worst Case Scenario” to a Private Money Lending Prospect

By: Anonymous

Anonymous — Tue, 16 Aug 2011 21:07:00 +0000

Hey Jeff,

In most of the deals that I do, I borrow enough from a private lender to cover all the cash needed to do the deal (purchase price, repairs, holding costs, etc).

We provide members in any of our training programs (PMBP, PMM, CSI, etc) full support for any questions they have… including helping analyze deals and make sure they make sense.

You’re welcome for the info.

- Patrick

By: Anonymous

Anonymous — Tue, 16 Aug 2011 21:03:00 +0000

Hey Jimc, thank ya. Glad you liked it man.

- Patrick

By: Jimc

Jimc — Tue, 16 Aug 2011 15:52:00 +0000

Nice job answering this question Patrick

By: Jeff

Jeff — Mon, 15 Aug 2011 16:12:00 +0000

Hi Patrick – it sounds like the investor you refer to is providing you with 100% financing as opposed to partial. Otherwise, I’m curious as to how you could provide a deed for partial financing – I would think that the property would default back to the seller if the deal fell through.
I’m also interested if you or members of your team would be willing to provide a sanity check on any potential deals that we have to make sure they make sense to you – is that something your team might be willing to do?
Thanks for all the info – I find it very helpful – Jeff.

By: Patrick_Riddle

Patrick_Riddle — Tue, 24 Nov 2009 13:32:05 +0000

Hey Eric … California is a note and deed of trust state. When I reference the deed, I’m referring to the title, the ownership of the property. That’s different than the deed of trust. So yes, it’s still going the extra mile.

Michel … nice advice. I like it.

By: Michel Lautensack

Michel Lautensack — Tue, 24 Nov 2009 00:09:30 +0000

I always advice my coaching student to answer this straight up and tell them like all business transactions there is risk and they should be in position to handle the risk but at the same time you minimize the risk by

1) Buying right and leaving plenty of cuhsion
2) Buying property insurnance if it burns down
3) Doing your homework with indenpendent 3rd parties who appraise the property for its final valua

If you dot hese thisngs and use good business judegment you minimize the risk and worse case

Mike

By: Patrick_Riddle

Patrick_Riddle — Wed, 28 Oct 2009 13:12:05 +0000

Thanks Richard … LOL …

I have an audio recording that I did with a short sales expert … I’ll email you the download link ….

~ Patrick

By: Patricia

Patricia — Wed, 28 Oct 2009 02:43:36 +0000

That was really good. Hey guys do we have anything on short sales. Thanks Richard

By: Eric

Eric — Tue, 27 Oct 2009 23:39:59 +0000

Hi Patrick,
I”m in California, a note+deed (not mortgage) state (at least for bank loans). Does that mean that by default our method would be to put a deed into escrow? Or is doing the deed thing still going the extra mile?

By: Richard

Richard — Fri, 23 Oct 2009 03:58:55 +0000

Patrick I do believe you could sell the Brooklyn Brige. Sir i wish my brain was that fast