Want Private Money For Real Estate? Know The 5 Key Secrets

Private money is the Holy Grail for Real Estate Investors in these challenging economic times.With banks stiffening credit guidelines and limiting their loans to only 70% to 80% of the property's purchase price, private money lenders are needed to fill the gap.

And even for the subject to investors, they may get a "free house", but the funding for rehab, minor fix up, holding costs (while trying to get a buyer or tenant), etc.demands private money, unless they want to rapidly deplete their own bank accounts-and that's not a sustainable business model

As for rehabbers, it used to be that they could tap in hard money private loans for 60-70% LTV from hard money lenders.

Now, even hard money lenders are looking more closely at credit, and the real estate investor had better have private lender funds for back up, in case he goes over budget or needs money for interest payments.

There is clearly enormous wealth-building potential with real estate investors able to pick up properties for $0.20 to $0.50 on the dollar from desperate homeowner and lending institutions needing to unload hundreds or thousands of REO's.All one needs is the money!

So, how can we find these private investors?And more importantly, how does one convince these potential private investors to make a private investment of $10,000's or $100,000's in your real estate project?

Now, if you want to raise a lot of private money, you have to be speaking to High Net Worth individuals with $millions in assets and the desire to invest it in a new venture.Whether these people are friends and family or whether they are accredited investors or Angel investors that you may not know, they share some common attitudes about money and investing.

So, if one understands the private investor's attitudes, and can enter that conversation, the only thing left to do is to ask for the check and start putting that private investment to work.

There are 5 Key Secrets the real estate investor needs to learn and understand, if he or she wants to be successful in borrowing private money for real estate.My colleague Bob, uses these secrets to buy nice homes in bulk (10 at a time), and turn them over for 6 figure profits.Simply put, without utilizing these 5 key secrets, no catchy phrase or elevator speech is going to bring the desired success.

Remember, private lenders are not motivated like homeowner about to lose their house.Nothing bad happens if the private lender doesn't invest his money.

So here are the 5 key secrets:

1) WIIFM
2) The 2 ROI's
3) Risk-Reward
4) Credibility
5) Trust

Here's what they mean:

WIIFM stands for "What's In It For Me?

" A private money lender is going to expect an extraordinary return on his/her investment compared to their other options.And the story, to put it bluntly must excite the private investor's "greed glands".

The 2 ROI's: As Will Rogers once said, "I am much more concerned with the Return OF my Investment, than I am the Return ON my investment.The private lender needs to have confidence in your exit strategy that will get his money back when promised.

Risk-Reward: Private Lenders of money got to be wealthy by being very careful about the amount of risk they would accept for any investment.So, unless you structure your private offering so that the risk is acceptably low relative to the reward, your chances of getting the money will be slim.

Credibility - this is a stumbling block for many real estate investors as they struggle to answer the private money lender's question: "why should I invest in you?" And here is the great secret: It's not about you, it's about your business!Learn how to structure your business so that it brings you credibility even if you have little real estate experience.

Trust - Ultimately, if you want that private money, your private lender must feel that you can be trusted to do what you say.With friends and family, one may have a head start on this.With private money lenders who have a more distant relationship, you must invest the time into building that trust.

About the Author

We help real estate investors find Private Money

Lenders to fund million dollar private mortgage investments in their real estate deals (in business 10 years).

Go To www.InvestorWealth.com

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Have You Tried Setting up A Paper Recycling Business

One of the easiest - and in fact one of the oldest ways of making extra money - is by collecting old newspapers and selling them to a recycling plant in your locale.

Believe it or not, you can develop a very respectable income collecting and selling paper to the recycling centers.It certainly does not take any education, specialized training or experience; it's as simple as saving your old newspapers and turning them in to a central collection depot.

Some "paper recyclers" are making more than $100,000 a year in this business.If other people are doing it, then there's no reason you can't do it!About the only equipment you'll need is a pickup truck or trailer that you can pull along be hind your personal car.We even found one "old timer" who was collecting paper in this era with a pushcart!While interviewing him, we found that he was deliberately choosing not to expand, although he very definitely could have.

The prices being paid for paper these days by the recycling centers will astound you (and remember that the quotations we give here may have escalated sharply since our research).For instance, old news papers are commanding $50 per ton and more; used cardboard, $75 a ton; and high grade office paper as much as $120 per ton.This kind of money for used paper that you can generally pick up for free can move you onto Easy Street in a hurry.Everything, of course, depends on how well organized you are, and how hard you work at building your business.

Make no mistake about it; we live in a paper world.Americans use 200 million tons of paper each year - for everything from daily newspapers to books and cardboard boxes.After quick use, we throw away at least 100 million tons of this paper, almost all of which could be recycled.This means that there's about 8 billion dollars worth of paper out there that can be collected and recycled each year.So if you are looking to start a business with real profit potential, what are you waiting for?

Just look around your own home, in the garage or basement, for instance.What do you do with the old newspapers after you've read them?How about all the mail you get each week?Chances are this waste paper just piles up in some corner of the garage or basement until one of the kids asks if he can haul it off for the school or Cub Scout paper drive.Or maybe your wife and kids get ambitious some weekend, clean out the garage and haul it all off to the collection truck at one of the local shopping centers.(We said maybe!)

It's true that selling stacks of newspapers you've accumulated during the past couple of months or so won't make you rich.

In fact, it's doubtful your own accumulation of paper will add up to a ton a year and that certainly won't amount to much in extra income.But think about the tonnage involved in the stacks of old newspapers you could collect from your relatives, friends and neighbours.You could easily collect a l00-pound sack of old newspapers from the people in your neighbourhood each week - and that's your immediate neighbourhood.

And then think about the total extra income you would have when you have hauled all this paper down to the recycling depot.If you're serious, and get yourself properly prepared, you can easily make $300 or more every weekend, and it won't involve all your time.Some planning and effort on your part are the prime requisites.

This business takes organization, some energy on your part, and at least in the beginning, your time.But if you put forth the effort as we have outlined, there's no reason you shouldn't easily realize a very comfortable income with your own RECYCLING BUSINESS.

About the Author

Uchenna Ani-Okoye is an internet marketing advisor and co founder of Top Affiliate Programs

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How to Delegate for Success at Work

If there were a single zero-cost initiative, one that you could implement immediately, that would motivate your people, improve team morale, grow team skills appreciably, increase productivity and profit, reduce your stress level and free up your time, would you go for it Whether youre an executive, a manager or a team leader, the following information will be beneficial to you.

There is such an initiative and, by the time you have finished reading this strategy, you will have a plan in place to implement it for yourself.The secret is delegation.

Take out a pen and paper and follow these simple steps to quickly draw up a delegation plan, one that will allow you to maintain effective control of all your tasks while still delegating effectively.

Look at What You Can Delegate
Recurring or routine tasks are the obvious candidates for delegation.
Draw up a list of all tasks you undertake on a regular basis.List them under three columns - Task Name, Time to Complete, and Special Skills.Mentally work through your week, hour by hour, day by day.If you need some reminders, pull out your planner or To Do lists and look for clues there.Or make a commitment to track yourself during the next week and record the tasks you undertake.

Then, review that list for suitability to delegation.Are there any tasks you used to do when you were in a more junior position If so, why isnt someone more junior doing them now Which of these tasks could be undertaken by absolutely anyone Are there any tasks on the list that require special skills that are in greater abundance in your team than in you All of these tasks are prospects for delegation.Now, draw a line through anything that is not a suitable candidate for delegation.Besides the obvious, these include personal tasks, such as collecting your dry-cleaning, HR issues such as reviews or disciplinary matters, or management of crises that you are paid to handle.Whats left are tasks that you can delegate.

Plan Your Delegation
Draw up a brief description of each delegatable task.
List why you undertake it, how you and others have done it in the past, when it must begin, when it must be complete, and what the outcome must be upon successful completion.This last point is key - you must have clear goals for the task, goals that are defined in an absolutely unambiguous manner that will make them easily communicable.What specific results must the delegate achieve in completing the task You know you have a successful task description if a stranger could pick up your description and understand what is required.

Decide Whom to Delegate to
You can delegate to utilize an existing team members skills more effectively, or in order to develop new skills in a team member.
Either match an individuals proven skills to the requirements of the task or match in terms of the particular skill growth that you want to see in any given team members.

The first thing your delegation candidates will ask themselves is "Whats in it for me" Identify why the task is important and how it contributes to the overall success of the group.People need to feel that what you ask them to do is truly meaningful.Then, determine what growth or development they will personally achieve from developing competence in completing this new task.

Well done You now have a delegation plan that you can begin to implement immediately.To put it in motion, you will need to do the following:

Delegate Each Task
Dont do this in two minutes over coffee, or as you pass in the corridor.


Accord the exercise the time necessary to explain the what, how, where, when and why of the task; whats in it for the team member who will take on the task; and how and when you will review progress and completion.Take time to sell the task and youll motivate these individuals to successful completion.Demonstrate your confidence in the selected candidates, reassuring them that you will be there to provide support should the need arise.If the task is particularly challenging, provide the security of more frequent reviews, with clearly agreed-upon milestones of the progress expected.This is essential to providing you with confidence that you still have control of tasks you have delegated.

Pass Ownership
Accountability without power is de-motivating.
Pass the new delegate the necessary authority to complete all aspects of the new task without coming back to you.Be clear, however, in setting the upper and lower limits of this authority in a manner that leaves no room for misunderstandings.

Review the Delegation
When you delegate a task, you agree to specific review points.
Be sure to undertake these reviews, providing advice and course correction as required.If there are problems, identify the root causes.Is it lack of confidence, lack of skills, or something else Work with the delegate to see how you can jointly address the difficulty.Encourage the delegate to come to you not just with difficulties, but also with his or her own ideas on how to overcome them.Dont be tempted to review progress more regularly than you agreed to, or to encourage "reverse delegation," where the delegate is at your desk every five minutes asking what to do next.

Celebrate Success
When a delegated task is completed successfully, be sure to recognize the delegates achievement.
Provide him or her with feedback and be sure that the success is known within the group.

Do it Again
Every so often, go back and review all of the tasks youre undertaking with a view to passing on as many of those tasks as you can.
If you are paid to manage, then manage - dont do.

You dont have to spend money to get greater productivity and profitability, or to improve motivation, reduce your stress level and free up your time.You just have to delegate.Pass it on.
About the Author

Jim Sirbasku is co-founder and CEO of Profiles International, a leading provider of human resource management solutions and employment assessments for businesses worldwide.

For more information, including the original publisher, download the entire

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