Institute Of Mortgage Lenders

The unknown lenders: The role of mortgage banks in the Chicago metropolitan area …

Institute Of Mortgage Lenders

Private Lending: How to Finf the Right Private Mortgage Lender

Although conventional lending institutions have long been considered the popular choice for obtaining a property mortgage, the increasingly fast paced environment has prompted real estate investors to turn to private mortgage lenders to fund their property ventures. This is due in part to the snags and red tape in the convention mortgage lending process and the increased competition in the global real estate marketplace.

Connecting with private mortgage organization that can sometimes be tricky due to private lending being integrated with conventional lending institutions when it comes to the advertising industry. On the flip side of the coin, some private lenders are also conservative about advertising due to probable issues with the SEC on the state and federal levels.

So, how do you cut to the chase and connect with a private mortgage lenders who will finance your next property venture?

Locate a Private Mortgage Lender: Private mortgage lenders are potentially all around you. They reside in your community, they may live in your neighborhood, you may find them through investor associations, perhaps they advertise, or maybe some of your friends can refer you to someone they know. The bottom line is if you look around you, private lenders are virtually everywhere.

Marketing Strategy: Connecting with a private mortgage lender requires a marketing strategy on the part of the borrower. You will need a networking strategy to locate potential private lenders and then you will need a marketing plan as well as a business plan.

Your audience will be private mortgage lenders that are interested in earning a high interest rate on their investment which will be secured by real property along with a loan-to-value ratio that does not exceed 75 percent.

You can choose to market your venture by inviting a group of potential private lenders to a presentation that you have prepared, that pitches the real estate venture to your potential investors or you can opt for other marketing strategies. Other strategies could include advertising high interest on investments, circulating your business card, networking with other real estate investors, mailing information, or locating prospects by word of mouth.

Use Multiple Lenders: As you make connections with private lenders, keep in mind that you may use more than one lender to finance a single real estate venture. In some instances, one lender may be unable to fund the entire deal. In this case you can negotiate one private lender to fund the first mortgage and the other lenders may act as second mortgage holders.

Whatever route you take to connect yourself with a private lender, creativity in marketing and offering your investors a better rate of return, are the keys that open the door to an endless array of real estate investment opportunities.

About the Author

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 http://realestatewealthtoday.com/FREE-eBook.html .
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.

STOP paying YOUR MORTGAGE? – England.?

Apparently I`ve heard that on the 1st March, 2008, everyone in England is going to stop paying there Mortgage payments for 6 months, in protest of mortgage Inflation….Is that right? and would that have such an adverse effect on mortgage lenders that they themselves might end up in serious financial difficulties? Its one way I suppose of getting the various Institutes to realise they are charging too much interest and people are simply not going to put up with it anymore? I wonder what the Govenor of the Bank of England would have to say?

As a mortgage broker I have not heard of this and would like to point out that this would be extremely unwise. Not paying your mortgage will have a severe effect on your credit rating and your future ability to get a new mortgage or remortgage. Ultimately defaulting on your mortgage will result in repossession and your name will be entered onto the Council of Mortgage Lenders register of repossesions. Unlike the normal 6 year limit on credit records the register is for life and your name will never be removed.

A mortgage is secured on your home unlike any other form of unsecured consumer debt. If you don’t pay your credit cards a bailiff can come and take your belongings but not your home. If you default on your mortgage you are likely to lose everything!

Matthew Trott – Charcol

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