I met a guy yesterday -call him Stan- who told me a sad story. Evidently, Stan applied for a Harley-Davidson loan and was turned down by some scrawny kid in the loan office. This was a frustrating event that could have been averted if only Stan had used private money for real estate investing.
The thing is, Stan is a long-time real estate investor with a very active credit file. Stan buys and sells a lot of houses, mortgages come and go from his credit report, and every new application means an inquiry on his bureau report. Now, just because he wants to spend a little of his money on himself, he is forced to kowtow to some obsequious little snot of a loan officer. Poor Stan.
Stan wouldnt be faced with this problem if he had simply put forth a little effort to set up a network of private lenders. Stans credit would look as pure as the driven snow, because private lenders dont normally run credit reports, and private loans never show up on your credit bureau.
Private money for real estate investing is like having the keys to the kingdom. Private lenders make lending decisions based on the deal, and based on their relationship with you, so they dont need to pull credit.
Now, when you want to get yourself a Harley, or a boat, car, or RV, your credit wont be encumbered by a whole slew of mortgages and inquiries.
Thats why youre involved in real estate in the first place, isnt it? A little extra to afford a few luxuries? Absolutely, and when the time comes to spend some of it, you dont want to hear some pimply-faced kid say, Im sorry, do you?
I think I know the answer to that question already. So does Stan.
So, the fourth reason to use Private money for real estate investing? Keep your valuable credit free for other things.
Would you like more reasons to use private money for real estate investing? Try visiting http://www.private-money-real-estate-investing.com/why-private-money.html and you will find a wealth of information.
Now, go make more offers!
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