It goes by a lot of different terms. You’ve probably heard it referred to as, “Private Money,” “Equity-Based Financing,” “Bridge Financing,” or “Creative Financing,” and for the most part, they all mean the same thing.

It’s non-traditional financing that relies on the property’s merits, rather than your personal qualifications. These types of loans are often secured by a note and deed of trust in first lien position on the property.

This means, if you have a great deal, you can find the money to do the deal and ASSET BASE CAPITAL wants to be your funding source!

There is this misunderstanding that the only people who use hard money (or OPM) are the people who have bad credit, bankruptcies, short sales, and foreclosures on their record and can’t get access to cash any other way. While this is true in some circumstances, many very successful real estate entrepreneurs use hard money each and every time they buy a property.

Why would real estate investors with liquid and sizable cash reserves on hand still prefer to use OPM (Hard Money Loans) every day of the week? Why would heavy-hitters, with gobs of personal cash, regularly use OPM?

Habitual, hard-core Deal Makers understand that if they leverage their own cash reserves, they simply tie up their own money for 6-12 months. This makes it impossible to buy more properties based on the amount of money in their bank accounts, which serves as proof that they can service loans on varying cash-flowing properties.

By leveraging OPM, they keep their own money liquid, which means they can do more deals, more often!

I’m here today to talk to you about how to use private money.

Now, in today’s market, a lot of people are buying real estate or wanting to get into real estate. But one of the things that are holding them back is money—plain and simple.

How to Get Started
We love those TV shows, you know the ones, the fix-and-flip shows, and all that great stuff.

But how do we really get involved?

How do we get started?

Now, a lot of you would argue that we’ve got to go find a real estate deal, which I agree with.

We’ve got to go out and find a deal.

We’ve got to negotiate with a seller and get a deal under contract.

For most private money lenders, that’s one of the first questions they’re going to ask, “so you have a deal under contract?”
Why?

Well, they don’t want to waste their time going through numbers and going through the whole process if you don’t have a deal under contract.