Financial Advisor

Private Money – Who Do I Make The Check Out Too?

The one question that always comes up from private money sources

“Am I writing a check directly to the real estate investor? Or do I write it to
an escrow/title company or attorney? “

This is an important question to ask BEFORE you trust your hard earned money
in a private lending transaction. Make sure that the company you work with has
you write your check directly to the escrow/title company or the attorney handling
the closing of the transaction. If the investor asks you to write them a check
directly… be wary and walk the other way.

If your an Investor and your looking to use a private money source.

Consider these points

1. When your first starting out, you’ll need a plan. If you try to wing this people with the money have money for a reason. They are cautious!

Trying to fumble your way through this will only get you disappointment.

2. Your plan should include things like a reputable title/escrow/attorney that has done transaction like this before. Most title companies will even
write up the note/mortgage for you. Make sure you know what to look for in the note/mortgage. Beware, these are boilerplate documents and can have verbiage in
them that could burn you in the end.

3. Have a PowerPoint presentation or at least a script. A 15 minute professional looking presentation can do wonders when recruiting new private money sources.
The key is learning what and what not to say in the presentation. Someone that says they need to think about it is probably confused and a confused mind will always say no.

If you would like more tips on private money like this one visit: http://www.investorsclassifieds.com/private-money

Private Money – Who Do I Make The Check Out Too? / Author: Ken Spohn