Atlanta Real Estate Investors Alliance Blog
Learn How to Borrow All the Money You Need, For All the Deals You Have!
3125 Presidential Pkwy, Atlanta, GA
Hi, my name is Don DeRosa and I am a full time real estate investor who uses private lenders to fund all my cash and creative real estate investment deals. On Saturday, March 25, 2017 from 9AM to 6PM at 3125 Presidential Pkwy, Atlanta, GA, I am teaching a Private Money Workshop to teach you how you too can raise all the private money you need to fund your deals. Register Now!
So why are private lenders so important to my real estate investing business? Because using private lenders gives me the flexibility and the speed to grab up deals other investors have to pass on.
Here are just a few good reasons to use private money to fund your deals:
Having private lenders allows you to close quickly. If I had to close on a house today I could have a certified check for $25,000 within two hours. Why? Because I have private investors ready, waiting, willing and able to send me a check at my call. If I didn’t do that, I’d have to pass on a lot of deals because I wouldn’t be able to find the money fast enough. Even if you’ve got bank financing lined up, you can’t close as quickly as you can with a private lender.
You can buy houses that the banks aren’t willing to finance. If a house needs a lot of repairs, banks will not lend on it. Let’s face it, banks are picky! Recently one of my buyers was rejected for a bank loan on one of my houses because the house didn’t have carpeting. I had to go put carpet in it so we could close. A private lender doesn’t have to operate by the same narrow policies.
You will not survive the cash-flow game if you use your own money. Like it or not, it takes money to make money. If you depend on using your own money, sooner or later you’re going to run out. You never need to run out of private lenders!
You can make all-cash offers more readily if you have private money. And that means you can get the houses at a huge discount. You can say: “Look, I’ll pay you cash and I’ll close quickly, but here’s my cash price. Take it or leave it.” And your competitor? He comes to the same seller, saying: “I’ll buy your house, but I want you to do owner financing. And let’s spread it out over five years. I’ll give you cash some now and some later.” Which investor do you think is going to get the deal? I am, because I’ve got cash in hand!
Exit strategies will be much quicker and more profitable, because you can make better offers. If you can buy a house subject to the existing financing and only bring $10,000 to the table, you’ll have your choice of exit strategies. It’s not your money, so you don’t have to get out of the deal as quickly. You can hold on to it for a month or for twelve months. It doesn’t matter, because it’s not your money.
You can negotiate more flexible terms with private lenders You’ll pay less than you will if you borrow from a bank or other money lender. You can negotiate simple interest instead of compound interest, or you can make one payment at the end instead of paying every month. And you can negotiate the amount of time you have the money.
You can take on more loans if you borrow from private lenders. If you use bank financing, at some point you’ll be told you’re maxed out and you can’t take out any more loans. And that limits your income. With private lenders, you don’t have that limit.
You avoid closing costs by using private lenders. Have you ever seen a HUD statement from a person that got conventional financing? The fees on that HUD statement are astronomical. When I do a subject-to loan with a private investor, my average closing costs are about $1,100 regardless of the size of the loan. All I’m paying for is my attorney, some recording fees, and title insurance. That’s it!
No credit report is required with private loans. Even better, not one of these loans shows up on your credit. And that means you can buy higher-priced homes, and more of them. Meanwhile, your credit becomes squeaky clean, which helps you in other parts of your life. I buy ten or more pretty houses every month. None of them are on my credit. I could buy a hundred a month if I had that many houses coming at me, and if I had the funds available.
Join us at the Creative Deal Structuring Workshop on Saturday, April 1st from 9:00 AM to 5:00 PM at 3525 Piedmont Rd NE, Bldg 5, Ste 100, Atlanta, GA with Leslie Mathis where she will show you how to structure real estate transactions using little or none of your own cash and credit. When you find a seller with a real estate problem that you can’t solve by buying for all cash at a discount, Creative Deal Structuring gives you many more tools in your toolbox for you to solve their problem… giving YOU more ways to PROFIT!
At the workshop, you will learn:
- Different Deal Structures Defined And Explained
- 3 Ways You Can Make A Profit Using Creative
- Deal Structures
- Testing Your Sellers For Motivation And Flexibility
- Collecting And Evaluating Your Numbers
- Structuring Your Deals For Maximum Profit
- Interactive Learning Gives You Best Environment
- To Practice What You’ve Learned
- Real-Life Examples You’ll Be Amazed By!
- Answer your questions and more!
Come spend the day with Leslie Mathis on Saturday, April 1st and learn creative ways to buy properties other than paying all cash. Register Now & Save!
PLEASE NOTE: Early registration expires on Wednesday, March 29th at midnight. You can join Atlanta REIA at http://membership.atlantareia.com and save on tuition fees.
ACT / REACT Workshop
with Jon & Stephanie Iannotti
We wanted to thank everyone who attended the ACT / REACT Workshop with Jon & Stephanie Iannotti this past Saturday. We also wanted to give a BIG THANKS to Jon and Stephanie for coming to Atlanta and spending so much time with us. It was a PHENOMENAL EVENT!
We got such good feedback and every one learned so much about how to structure creative deals as well has how to do the deal when the seller wants full price and all cash. I think everyone’s favorite part of the event was listening to Jon talk to sellers live and make deals happen right there in class.
Many of you took advantage of purchasing Jon and Stephanie’s home study course on the ACT / REACT Strategy. However, a few of you didn’t because of the lack of a payment. It came to our attention after the event was already over, that Jon & Stephanie forgot to mention that we do have payment plans available for their training products and can do a two or three payment plan with you. Jon & Stephanie have agreed to honor the special Atlanta REIA pricing for the remainder of this week so you take advantage of a payment plan.
For more info on Payment Plans for the Iannotti’s ACT / REACT System, please call Chrissy at (678) 701-7160.
Let’s Make a Deal!
with Don DeRosa, Barry Beers & Guest Panelists on March 8th @ 6:30PM at Hudson Grille in Sandy Springs, GA
No Charge to Attend for Members or Guests
The Let’s Make A Deal (LMAD) group is back with an ALL NEW format that is all about making deals happen! Let’s Make a Deal is subgroup of the Atlanta REIA that will meet on the 1st & 3rd Wednesday at 1:00PM and the 2nd & 4th Wednesday at 6:30PM at the Hudson Grille located at 6317 Roswell Rd NE, Sandy Springs, GA (map). This group is all about making deals happen at the meeting which means Buying, Selling and Trading Wholesale Deals and Creative Real Estate Deals before, during and after the meeting!
Each month we will have a 3-5 person panel who will quickly pre-screen your deals and decide if they want to buy them from you on the spot. If someone on the panel wants your deal, you can have it under contract before you leave the meeting. If everyone on the panel passes on your deal, you can make it available to the entire audience. If we don’t have time to present your deal to the panel and the audience, after the meeting is over there will be plenty of time to network with other buyers and sellers and share your deals.
Here is our schedule which is subject to change from time to time, especially around the holidays. Be sure to check our calendar for the most update dates and times.
- 1st Wednesday at 1:00PM at Hudson Grille
- 2nd Wednesday at 6:30PM at Hudson Grille
- 3rd Wednesday at 1:00PM at Hudson Grille
- 4th Wednesday at 6:30PM at Hudson Grille
If you are a new or experienced investor looking looking to buy or sell houses, this group is for YOU! Be sure to bring your deals, property flyers, business cards, contracts and Let’s Make a Deal!
You can also join our Let’s Make a Deal Facebook Group and post your deals here:
The March 2017 Edition of The Profit Newsletter, the official newsletter of the Atlanta Real Estate Investors Alliance, is now available for download. There are 52 pages this month full of upcoming meetings, workshops, webcasts, educational articles and other valuable information for your real estate investing pleasure and success. Download it and check it out!
The Profit is Atlanta REIA’s digital, interactive newsletter for serious real estate investors delivered as an Adobe PDF file to read on your PC, Mac, Smart Phone, iPad or other mobile ready devices. Many of the articles and ads in The Profit contain many hyperlinks you can click to get more information online! The high res version of The Profit is “print ready” for those who want to print the newsletter on their home or business printer.
A little history. Back in 2007-2008, not only did the Real Estate market change, but so did our entire economy. With the near total melt down of our economy, Real Estate took a huge hit. The Banking/Lending industry all but shut down making mortgage loans.
This made it very difficult for us to do business. Up to this point we were doing just about every creative technique out there for they were all working. We were doing Subject To, Lease/Options, Private Money, Rehabbing, REO’s, Wholesaling, Wholetaling, Commercial, Building Spec Homes, etc.
Lending was way too loose, but that was what was making it easy to sell properties. In fact, it was so easy, some even crossed the line and put home owners into homes that they knew they could never afford, but were able to obtain these easy to get loans. We of course could not do that. Read More→
Value is subjective to each party of any real estate deal and value doesn’t have to be determined in dollars. Today people have been taught that the dollar is the only way to determine value. Let me give you an example of what I mean. When you go to the grocery store and go through the checkout lane with your chosen product that costs nine dollars, you give the clerk a twenty dollar bill; you are expecting eleven dollars in change back. This is what people today have been taught how to determine value, in dollars.
Dollars don’t have to have anything to do with value, here is an example. A lady who lives in my area was struggling financially, having trouble paying her rent every month because she was unemployed and couldn’t find work in her field. This lady was dealing with much stress because she owned property in New Hampshire that was vacant land that didn’t make her a penny. As a matter of fact, the cause of your stress was because the property taxes for her property in New Hampshire were due and she didn’t have the money to pay her property taxes. She had a real dilemma. Read More→
When I first started in real estate, I spent over $250,000 flying all around the world attending boot camp after boot camp, learning all the different ways I could get involved in creatively buying, selling and holding real estate. It seemed like it was always the same group of people flying around the world with me and taking the same training. The only difference I noticed was that many of the people who had attended these trainings had never even made an offer on a property. They never used the knowledge that they received and just kept on going to more and more seminars. And as we all do, we exchanged business cards with individuals we met at these meetings. At that time it was my husband, step-son and I attending all of these trainings. When I got home from many of the meetings, I would get telephone calls from individuals who still didn’t understand the process of the training they received. Read More→
When you are looking to make offers, remember your obligation is to the most important person in your company; the shareholder. Most often, the shareholder is you. Have your list of what a profitable deal looks like, armed with your REIA Comps information and some courage your list can be successful.
The key to meeting your goals and having your success as an investor is a thorough understanding of VALUE. Understanding the value of a potential investment property is the basis for profits. Taking stock in the real estate market and learning how to properly analyze the market is paramount. This enables you to make a maximum profit when buying real estate for flipping or reno and sale. Read More→
Last month I wrote about beginner’s rules and the first presentation a person could do when looking to raise capital. I talked about the mistakes that I made early on. I just changed the names to protect the innocent, me.
I want you to think about being able to raise private money from local sources, business people, retirees, and people who have money sitting in banks or accounts that are barely earning them a .01% rate of return. If you are one of those people, then we need to talk.
So, picture yourself walking up to people and building a relationship. Is this scary? Is this awkward? Is this a cake walk? Read More→
This is probably the biggest tip I tell wholesalers all the time. When you are interested in a property, make the offer! That’s it!
It’s such a simple tip. See property, have interest in it. Make an offer. Yet for reasons continually inexplicable to me, too many investors simply don’t make the offer!
I recently sold a deal that I got seven offers on within 24 hours. The irony is I had it at a higher price in purpose for a test I was running and no one offered on it. When I lowered the price, all of sudden everyone was interested. When I sold it, several of the others said ‘that was a good deal!’ To which my response was, ‘it was but you could have had it sooner had you just made the offer.’ The look on their face was shocking as if to say ‘you mean we can offer a bit less than the asking price?’
Let’s clear this up right now… Read More→
Sure, there are reasons – good reasons – to not own rental property: tenants, vacancies and repairs, to name three. But have you ever spent time thinking why owning investment real estate might be a good idea?
Last year, my father-in-law was rushed to the hospital with what doctors thought was a massive stroke. When the ambulance arrived, he was taken directly to ICU where a ventilator was inserted, and to prevent further injury, he was given medicine to induce a coma.
Kim and I had to live at the hospital for several weeks. Gotta tell you, an ICU’s waiting room is full of interesting life lessons. Read More→