Interest rates are low and now is the best time for qualified lenders to purchase real estate with financing. The problem is that not everyone can “qualify” for loans to buy property. Conventional U.S. lending will only allow people with credit in the States to get up to 10 mortgages.. what do you do if you wanna keep shopping? Also, many clients are purchasing U.S. Real Estate from overseas. Foreign investors want to leverage their cash, but can’t qualify for U.S. financing without an established credit in America.
The solution is Private Financing. Private individuals with money to lend- who are not getting good returns from bank checking accounts or CD’s and who are looking for an alternative to the stock market- can make their capital available to investors seeking to buy real estate. This method provides safe, steady returns backed by a tangible asset- the real estate itself.
This past February, Alex Craig and Jeremy Veldman joined Robert Helms and Russell Gray of The Real Estate Radio Guys to discuss the topic of Private Mortgage Lending.
The title of the Podcast is: “Fast, Flexible Financing- The Power of Private Lending” 2/26/2012
The Real Estate Radio Guys have been in business for several years and have had many reputable guests on their show including- Robert Kiyosaki, Presidential Candidate Herman Cain, and Steve Forbes. Veterans of the Real Estate Investing Industry, Robert Helms and Russell Gray under stand the nature of investing and the critical role that private money plays in helping investors grow their real estate empires.
We discuss with veteran Real Estate Entrepreneurs Robert and Bob Helms the power of private financing and how it is a “game changer” in building your Real Estate empire. We also discuss how it is a true “win win” scenario in that the investor-buyer wins by acquiring a property with leverage and the private mortgage lender also wins by having their investment secured by a piece of property that they are a first lien mortgage holder of. The private lender gets steady rates of return, monthly, and has the opportunity to truly invest PASSIVELY in real estate without the challenges of being a landlord.
We also discussed some of the programs we have available at Memphis Turnkey Properties for investor-buyers seeking financing with property acquisitions. Currently, we offer a 35% down mortgage financing program where buyers (particularly foreign buyers) can purchase a property with as little as 35% down. The balance of the purchase price is financed with private money. This is an attractive solution for international clients seeking to buy U.S. property with leverage. This is also an attractive scenario for private mortgage lenders as they are lending to an individual who has put a 35% down payment on a property and has “skin in the game” making them less likely to walk away if something goes bad. Private mortgage lending is an opportunity for individuals with cash to invest who are seeking higher rates of return than traditional investment vehicles backed by something tangible.
Check out the podcast and let us know what you think.
We had an absolute BLAST with Robert and Russell and we wanna thank them for giving us the opportunity to be on their show. It was a great experience to be with experienced veteran Real Estate Entrepreneurs who have been in the business for years and have a lot of knowledge to share. We hope you find the podcast helpful.
If you have question/comments, please visit the CONTACT US page.
Thanks for listening!
Jeremy Veldman/Alex Craig