342: How to Buy Real Estate WITHOUT The Banks (Private Money Explained)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 23 November 2023

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

Need flexible funding for your deals? Private money could be the answer. Whether you’re looking to dodge the bank or want greater control over the terms of your deal, that’s exactly what this creative finance option can provide. Our hosts can vouch for it! Welcome back to the Real Estate Rookie podcast! Today, we’re taking a deep dive into private money—the creative finance solution that allows you to fund more deals without huge down payments or stellar credit. Tony and Ashley share how they discovered private money and why it’s their go-to financing option today. If you’re looking to borrow funds, our hosts will show you how to find private money lenders, how to structure your private loans to benefit both parties, and why this financing solution is the PERFECT stepping stone for a future investing partnership. In this episode, you’ll also learn about the three essential documents for all private money loans, as well as how to approach your lender about structuring a deal. But that’s not all—this masterclass is for the private money lenders, too! Tony and Ashley discuss ways to protect yourself in a deal and how to ensure that you get your money back. Finally, you’ll learn when not to lend private money! In This Episode We Cover: How to get 100% financing for your deals using private money The differences between traditional bank financing, hard money, and private money How to find a private money lender for your next real estate deal The three documents you NEED for any private money partnership The best ways to protect yourself when lending money Crucial tax advice for those using private money for their deals And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Ask Us Your Investing Question Apply to Be a Guest on the “Real Estate Rookie” Podcast Private Capital Explained: The 4-Second Pitch to Unlock Unlimited Funds (Part 1) w/ Amy Mahjoory Private Money Explained: 5 Simple Ways to Find Private Money (Part 2) w/ Amy Mahjoory Private Money Explained Part 3: The “Credibility Pieces” Lenders Love to See w/ Amy Mahjoory & Josiah Hein Private Money Explained Part 4: Rates, Returns, and Protecting Investors w/ Amy Mahjoory How to Buy a Rental Property with NO Money OR Credit w/ Pace Morby Making $71K on ONE DEAL After 5 Failed House Flips and Six-Figure Debt w/ JP Desmet Generate Your Own Loan Amortization Schedule: Bankrate EZ Financial Calculators App Books Mentioned in the Show Real Estate Partnerships by Ashley Kehr & Tony Robinson Check the full show notes here: https://www.biggerpockets.com/blog/rookie-341 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 342.
0:05.0	My name is Ashley Kerr and I am here with my co-host Tony J Robinson.
0:09.8	And welcome to the real estate rookie podcast where every week, twice a week we're bringing you the inspiration,
0:15.2	motivation, and stories you need to hear to kick start your investing journey.
0:18.4	And today we're switching it up just a little bit.
0:21.4	You guys don't get a bunch of questions from the Ricky audience today, but you get to hear for me,
0:25.9	from my experience, and Ashley's going to kind of interview me today to talk all about private money lending.
0:31.3	Yeah, we're going to do a deep dive into everything
0:34.7	and anything you need to know about being a private money lender
0:39.3	or getting money from a private money lender.
0:43.0	We're going to talk about putting together the contract,
0:45.9	the amortization schedule,
0:47.8	what kind of document you need to file with the county clerk
0:51.4	to kind of make it official.
0:53.8	So we're going to go through those documents that you need.
0:56.0	We'll give a little tax advice as to things you should consider for your taxes.
1:01.2	And then Tony also tells us how much money he had to pay out of pocket to a
1:08.5	private money lender when his flip it didn't sell.
1:12.5	So it's a jaw-dropping amount of money, Tony.
1:16.7	So makes you listen for that.
1:20.2	And I think it's a great example as to the kind of character and trait that you should look for when you are investing with somebody too.
1:28.0	And we definitely talk about scenarios where you can protect yourself and also what kind of standards you should have for the person
	...

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