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MIG exists to serve the Memphis-area real estate investment community. Our mission is to provide our members the education, training, motivation and networking opportunities that will further the ethical investment in real estate.

 

If you think the price of education is expensive consider the cost of ignorance.

 

 

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Heard About Private Money?

Heard About Private Money?
By Kevin Perk
Posted on 4/02/2015 4:29 PM

 


Real estate investing is something that has, for me at least, been filled with many “aha” moments.  These are moments where my eyes were opened to a new idea or way of doing things, where I finally grasped some concept, or where something worked the way it was supposed to.  I guess my first “a ha” moment was when I discovered real estate investing.  Another was when I collected my first rent check.  There have been many others, but let me tell you about one specific moment that has really helped me expand the amount and type of real estate investing I was able to do.  That moment was when I discovered the power of private money. 

 

 

Early on in my investing career when I needed funding for a deal I simply went to a bank to get a loan.  These were the days before the real estate crash and the money was flowing.  I never even considered using anything else.  Why should I?  I had acquired plenty of properties with plenty of bank loans.  I thought that this was simply the way things were done.  And of course you can invest this way.  But I will tell you this, bank loans can be expensive, time consuming, exasperating and even fickle

 

 

To get a bank loan you need appraisals, lawyers, flood certifications and of course the banker also gets paid with doc fees, preparation fees, loan fees, etc.  All of this comes out of your pocket.  Banks also want every kind of form ever devised.  They want taxes, personal financial statements, rent rolls, statements, etc., etc!  Filling out all of these forms and getting them together can be a job in itself.  And when you really need the money, when the deals are basically falling out of the sky like they were in 2008 and 2009, banks will often get out of the market and stop lending possibly leaving you high and dry.

 

 

Now do not get me completely wrong.  I still use banks.  They do serve a purpose and I have some very successful banking relationships.  But the beautiful thing about real estate is there are many different ways to do it.  And this is where my “a ha” moment comes in that I was telling you about.  I found a different way.

 

 

Several years ago MIG invited Alan Cowgill to give a presentation.  As a faithful MIG member I came and listened to his presentation.  It was all about finding and using private money to fund your real estate deals.  Prior to hearing Alan speak I had never really thought of the power of private money, never really thought of where or how I could find it and never really thought what it could mean for my business.  Alan gave me one of the biggest “a ha” moments of my real estate career.

 

 

Suddenly, a whole new world seemed to open up before me.Alan Cowgill Course

 

 

What if, I thought, there was a way to get money to find my real estate deals that was cheaper to use, less time consuming and all around easier to work with?  Private money was something I had to look into.  I bought Alan’s course that night and devoured every word.

 

 

That was one of the smarted things I ever did.  Buying, reading and utilizing Alan’s course took my business to a whole other level.  I now understood what private money was and how it worked.  I now understood who might have it.  I knew the questions I needed to ask prospective lenders.  I knew what documents I needed to have and I now had them. 

 

 

Even so I was still nervous asking people for money, but with Alan’s course I felt prepared.  So I asked.  And I am not ashamed to tell you that I since have raised significant amounts of money and bought several properties with private funding.  And there is plenty more out there. 

 

 

How would that change your business? How would that change you?

 

 

Looking back it was easy.  But it would not have been without Alan’s course.  Sure it cost me a few dollars at the time, but look at what I got in return.  Do you think the cost of Alan’s course was worth it?  I do.

 

 

Could I have learned all of this stuff Alan offers in his program for free somewhere on the internet?  Maybe.  But the amount of time and effort needed to compile all of the information and proven resources that Alan offers made the price seem very reasonable.

 

 

Do I sound like a commercial?  Yes and I know that.  But I am one of you, a fellow MIG member for over 10 years now and I am proof that Alan’s system works.  It worked for me and it can work for you.  I am more than happy to write these words about Alan and his course. 

 

 

Alan will be back at MIG this Thursday night. 

 

 

So ask yourself, where do you want to take your real estate investing career?  What could private money do for you?  Think about it and think about investing in your real estate business.  Think about investing in your future.

 
 Kevin Perk
Smarter Landlording