Need the cash for your real estate deal, but don’t know where to get it? Don’t think you’ll qualify for a bank loan?
While discussions about private money and private money lenders are sometimes met with confusion, misinformation and sometimes skepticism, this very real way to fund your deals can mean the difference between closing fast with no cash or credit of your own… or not closing at all.
Jay Conner, best-selling author of the No. 1 business book The Masters Of Real Estate: Getting Deals Done in the New Economy, recently shared a wealth of knowledge to Deals & Dollars Weekly about how to make private money work for you, borne from his own experiences as a real estate entrepreneur.
In this lesson, Jay answers your most asked questions, including:
With an 800 credit score and never having missed a loan payment, you would think banks would bend over backwards for a guy Jay Conner. So, you can imagine to his dismay after a long relationship and $1 million credit line that the bank would suddenly deny him the funds he needed to close on two properties in the midst of the Great Recession.
“[The banker] clears his throat, and he said, ‘Well, Jay, we had to collapse your line of credit.’ I had never heard of a line of credit being collapsed before, but it didn’t sound good,” Conner said.
“They had no reason to cut me off other than, the banker said, ‘I’m sorry Jay, we’re not making loans to real estate investors anymore with the economical climate as it is.’”
For entrepreneurs like Jay, it could have meant disappointment. For others, defeat.
Yet, even as the global financial markets were hurdling towards collapse, Conner soon discovered a way to attract more than $2 million in shaky and stable markets alike without ever having to go through a credit check, worry about personal income, or qualify with the bank again.
“My definition of coincidence is God’s way of staying anonymous, and I was introduced to this incredible world of private money,” he said.
Six years after his banker denied him the cash he needed, he and wife Carol Joy celebrate more than a decade in a real estate business that boasts a seven-figure income set on autopilot in eastern North Carolina.