The Power of Private Cash in Real Estate Investing

By on February 22, 2011

The Motley Fool warned real estate trust investors this morning about an ugly four letter word to watch out for in the coming months – debt.

As Brian Richards reported, the trusts with high-to-capital ratios need to keep a close watch on the trend in debt levels.

Aren’t you glad you don’t have to worry about following debt ratios and trends as a real estate investor who uses private money to fund their deals? Now, I know there’s a difference in investing in real estate investment trusts and brokering your investment deals, but they are similar beasts.

Working with private investors to syndicate your real estate investments is a much less complex strategy for getting rich than looking at all of these indexes, ratios and trends. I’d much rather work with someone’s cash to return 5.5 to 8% to mine and their pockets than watch tickers and guestimates by analysts.

You see, the power of syndication and pooling private money is that we are working with CASH. I think that’s a much prettier word than debt. Plus, it’s a much more powerful word when it comes to getting deals done.

Are you ready to learn more about syndication and pooling? As part of Private Money month on The Investor Insights, I’ve put together a video series that breaks down how to get deals done with private investors and that pretty word – CASH. Visit this link to get the simple facts on syndication and pooling private money.

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About Susan Lassiter-Lyons

Susan is the author of Mortgage Secrets for Real Estate Investors and founder of the award-winning real estate blog, TheInvestorInsights.com. A real estate investor since 1994, Susan has raised $26.2 million in private money and participated in more than 600 transactions as an investor, broker, lender, syndicator and advisor. Susan is a dedicated trainer and her training, seminars and coaching programs have transformed the lives and businesses of thousands of real estate investors worldwide.

7 Comments

  1. Pingback: How Private Money Makes Real Estate Investing A Breeze | Real Estate Investing News Watch Blog Aggregator

  2. Gerry

    February 23, 2011 at 6:13 am

    I now believe there is no such thing as Private cash or Private lenders. I have been all over the Internet, blogs, articles, etc. All I ever find is self promotion for someone selling something. I have never found REAL Private money. As an example I know someone in need of $40,000 offering 7% for a 10 year term, backed with a 1st place lien on a property valued at $98k. No takers. I myself have looked for private cash for the past 3 years, the only place I found it was friends and family.

    • Susan

      February 23, 2011 at 10:01 am

      Hi Gerry. Sounds like you’re frustrated. I have raised millions in private money so it’s definitely out there. My Private Money Blueprint students raised more than $11 million just in the last 12 months. I can tell you that you’ll never find it on blogs and articles. Building relationships is the core of raising private cash so you’ll have to start doing that and presenting deals the right way.

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  4. Pingback: Three Keys to Getting Private Investors Onboard

  5. Van

    November 10, 2011 at 5:15 pm

    I see a lot about borrowing private money from other investor who are lending you money in their self directed IRA and I see lots of examples of people who use their own self directed IRA’s to finance 100% of the purchase price on a property. Can I use my own self directed IRA as a down payment (25% of the purchase price) and then finance the balance with traditional financing or other private money? Thanks!!

    • Susan

      November 10, 2011 at 6:18 pm

      Hey Van, yes you can use your SDIRA to fund the downpayment but you’ll need an IRA non-recourse loan to fund the remaining balance. They go to 70% LYV so you’ll need 30% from your IRA. The bank I recommend is North American Savings bank at http://www.iralending.com/

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