Becoming A Real Estate Investor

Real Estate Investing FAQ

Q.  How do I get started in real estate investing?


A.  The best answer I can give to this question is, get educated. You can’t get to where you are going, unless you know how to get there. Buy a real estate course from a guru and study it… all of it; then think about all you have read and re-read it again! After that I recommend joining a real estate club to meet others with the same interests as you.

Finally, make a written goal. Without a written goal, it will take you 10 to 20 times longer to obtain your destiny. I tried it 3 times without a written goal and I just wasted my time. A written goal is the answer to success, trust me on that!



Q.  How does real estate investing work?


A.  Well it’s a process of investing your time, money and effort in buying, selling and/or holding Real Estate. Now with that said, in time, some, all or little of the above needs to be invested; it just depends on you ( I only invest a little time and effort now). If you think smart and get educated in the Real Estate investing business, eventually you will likely give very little effort and/or money to make thousands of dollars in an extremely short time period.



Q.  Are there loans for real estate investing?



A.  Yes! There are a variety of loans available for real estate investors. The most common are: Hard Money, H.E.L.O.C, Private Money, Investor Mortgages and Seller Financing loans.  



Q.  How can I get a grant for investing in real estate?



A.  The answer to this question is, I’m not sure, I’ve never gotten one. Some State’s and City government offices offer grants for community clean up’s of neighborhoods. Check with your local government City offices about these programs.

If you know of or hear of any of these programs, please shoot me over an email and tell me about them so I can pass the information on to everyone visiting here.



Q.  Do you recommend real estate investing courses for beginners?



A.  Absolutely!  I’m a firm believer in learning everything you can about investing in real estate. You will eventually find a niche in what you learn and you will likely focus most of your time and effort on that niche while earning most of your fortune there.

Tim Taylor offers a great course for beginning real estate investing, click on the link in our home page and check out his money back guaranteed course. I like Tim’s course because of his great money back guarantee, as much as his real estate investing course.



Q.  What is a silent real estate investor?



A.  A silent real estate investor is generally someone who doesn’t work the front lines of the investing part of the real estate business. They like to keep private from the public. As an example: let’s say you borrow from a lucrative friend, who loans you money to buy a rental home for cash. Although he/she dose not actually do the transaction or get involved with the seller, he/she owns the property until the note is paid back. By that I mean, if you don’t pay him/her back with interest for the loan as agreed, the lender (silent investor) can foreclose and take the property from you. However since you will be paying back their money with interest or profit, “right!” then that’s what you call a silent real estate investor.

Most Hard Money Lenders borrow from silent real estate investors. There are many more examples of silent real estate investors but you will learn them as you begin your journey into the greatest business I’ve ever known, becoming a real estate investor.




Q.  What are private real estate investors?



A.  Well, in layman’s terms, that’s you! If you’re not buying property as a big hotshot company, then you are a private real estate investor. Now that doesn’t mean you shouldn’t be smart and protect your family and assets by placing your purchases into some sort of entity such as an L.L.C. or trust. You are just buying property privately, as an investment from mostly single family homeowners. 

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Private Lending - How to Finance Real Estate through Private Mortgage Lenders

Financing your real property deal through a private mortgage lender is not difficult however; it will involve some simple steps with documentation that will include a Promissory Note, Mortgage, Certificate of Insurance, and a Disclosure Statement. It is also a good idea to consider any federal or state security issues (SEC) which occasionally transpire through the private lending process.

When considering financing through a private lender, you must first locate a private lender with an interest in your particular real estate venture. Private lenders are ordinary people who are willing and financially able to fund your property venture by means of their own assets. You can locate private lenders through networking with others in the business, asking for referrals, or making a public presentation to a group of potential private money lenders.

Assuming you have located the private mortgage lender, you will need to set up a meeting to negotiate the terms of the private mortgage loan. Keep in mind that the private lender you choose can secure funds for you through a commercial institution or through personal assets such as bonds, stocks, or cash. You will want to negotiate terms that will present a win-win situation for both you and the lender.

The Promissory Note and the Mortgage document: The Promissory Note and the Mortgage document the terms you have agreed upon with the private mortgage lender. The Promissory Note explains in detail the terms in which the lender has agreed to fund your real estate venture as well as the terms you have agreed upon to borrow the money. The Mortgage outlines the terms of your performance as the borrower and generally is filed with your local county office by an attorney to insure that the filing process is done correctly.

Certificate of Insurance: The Certificate of Insurance is obtained from the insurance agency of your choice and should be provided to your private mortgage lender. The property insurance should include a title to your lender and a title to you as the borrower. It should also outline the exact terms of coverage with regard to property type and causes of loss such as flood, basic, broad, special, or earthquake.

Disclosure Statement: Use of a Disclosure Statement is always a good idea in a real estate transaction due to the fact that investing involves uncertainty and risks. The Disclosure Statement will outline the risks to your private mortgage lender, as well as your plans for use of the property and any possibilities for change during the course of the transaction. This statement acts as assurance that both you and the lender are aware of the possible risks involved before you enter into the real estate transaction.

Federal Regulations: You will want to check the federal regulations as well as those for your particular state with regard to what is termed as issuing a Security. In many cases, when you work with a private mortgage lender, it is considered issuing a Security under SEC guidelines. To avoid any problems, you may need to register with your state or federal SEC if you do not fall under certain exemptions.

Deciding to fund your real estate venture with a private mortgage lender is a relatively straightforward process and can open the door to diverse opportunities for future opportunities that would otherwise be complicated with conventional lenders.

I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here . Mike Lautensack is a full-time real estate entrepreneur and creator of the Private Lending Presentation Kit. To learn more about this kit go to Private Lending Presentation Kit.