Hard Money Loans for Real Estate Investors: Do’s, Don’t’s, Scams, and Shams

Hard Money Loans for Real Estate Investors:  Do’s, Don’t’s, Scams, and Shams

Hard Money Loans for Real Estate Investors: Do’s, Don’t’s, Scams, and Shams

With virtually anyone being able to claim they are a hard money or private money lender, how do you determine if you’re dealing with a scam or a legitimate lender?  This analysis will help you quickly qualify a potential lender. a) References are the number one key to qualifying lenders, contractors, real estate agents, tenants, and other people in our industry. If you would agree that the best marketing is word of mouth, consider that it is also the absolute best way to avoid being scammed.  The major players in our market have multiple references and happy customers to back them up.  I apply this logic to everyone I hire/do business with.  If I’ve never heard of you, I’m taking an unnecessary risk and I owe it to myself to conduct extraordinary due diligence before I give you the green light.  There are too many honest vendors out there to choose from that can provide references.  Avoid the unnecessary risk and the trail of tears. b) Location of the lender should be considered. While there are big national hard money lenders out there that have multi-state footprints that can be good choices, the small out-of-state lenders should be avoided.  Real estate investing is a local game and you should network and know the local players anyway.  In Houston, all of the hard and private money that you could ever need is more than likely less than a 45 minute drive away.  There is no reason to give the time of day to some out-of-state small fish that no else has ever heard of. c) Competitive Interest Rates and Points...
How I Apply US Army Values To My Real Estate Business Daily (And How You Can Too, Regardless Of Your Industry!)

How I Apply US Army Values To My Real Estate Business Daily (And How You Can Too, Regardless Of Your Industry!)

Companies and individuals have to figure out on the front end what values they are going to uphold.  Values are the guiding light that a brand is founded upon and helps the customer differentiate qualities and quantities.  They allow us to present the same product consistently.  They serve to let us know when we are off course like a compass.  They tell us, “This is how things are done here.”  For example, McDonald’s and Ruth’s Chris Steakhouse are both famous and successful restaurant chains but there is no way that anyone could ever get the two mixed up as far as quality.  I’m not knocking Mickey D’s but no one I know has ever said, “You know what, I’d like to go to get a 5 star Big Mac and I expect to pay $50 for it.”  McDonald’s is regarded as a low cost volume provider and everyone knows it and is fine with it.  They have their way of doing things (their values) and they make a lot of money doing it.  So what we’re really talking about here is figuring out who you are as far as strengths and weaknesses, making the appropriate corrections as necessary, and then consistently delivering the product that correlates to the brand that is derived from your values. When I went through Army basic training 16 years ago, our drill sergeants made us memorize the Leadership acronym which was laid out as follows: LDRSHIP Loyalty Duty Respect Selfless Service Honor Integrity Personal Courage Obviously, as a soldier, these terms revolved around service to the country, Constitution, and fellow band of brothers.  Well...