Non-Traditional Lending You NEED to Know About!
Listen in to learn more about Asset Based Lending with Timothy Hero! Click Here for the audio only version on the Lady Landlords Podcast! Real Estate Investing is a puzzle. All of the pieces are there, we just have to play the game and piece them together. One of my favorite things are REI is that the strategies are all proven and duplicatable. It's up to us to decide which path is right for us and our portfolio. So let's talk financing! Fundamentally, we need to identify a property and then we have to pay for said property. This week, I want to address that paying part. Many times, first time investors feel they have to save up tens of thousands of dollars before they can buy their first property. Many also feel they have to have perfect credit or a solid W2. Others are worried that their current rentals will add too much debt for them to get approved for another loan. But, I'm here to tell you, that's just not true! There are so many different types of loans and lenders that we must educate ourselves on all of the options. That way, when we find a deal, we can pick our financing from our toolbox and voila! Here are 3 tips to consider when looking for financing:
1. Evaluate what type of Lender is best for you Traditional, Non-Traditional, Conventional, Owner Occupied, Asset Based, oh my! With so many options, make sure to learn the differences between the different types of financing so you can be confident in the strategy that you are using. Download a FREE copy of the Lady Landlords Financial Cheat Sheet here. This way, when you are looking to connect with lenders, you can feel assured that you are speaking to the right person. When we come from a place of knowledge and confidence, we have a great chance of success! Need a crash course in Creative Financing? Watch our recent workshop here! 2. Be Prepared for a Partnership. Real Estate Investing is a relationship business. You have heard this time and time again. And why? Because it's true! With financing clearly being an integral part of buying rental properties, it makes sense to have our lenders on speed dial. Connect with them. See what you can do to make their lives easier and watch the rewards it brings you. For example, I was recently presented with an AMAZING off-market deal (Thanks again to networking!) I knew I needed to move quick on it. I reached out to my lender of choice for this deal at about 8pm last Friday night and I had the pre-approval I needed in about 5 minutes. The reason I was able to make that happen is because I always keep my financials updated for my lender so it's a no brainer for him to know if something can work or not. Want to connect with my trusted lenders? Get their contact info here! 3. Know your numbers. Want to know my other secret for building a relationship with your lender? You guessed it! Know your numbers! When I sent that email to my lender late last Friday night. I didn't just say, "Hey, I need a pre-approval." That would've created an endless back and forth email chain when time was really of the essence. Instead, I clearly listed out the cost of the property, what my down payment would be, what the rents were, and all the other pertinent information that I knew that particular lender would need to know. Since we have done many deals together, he can trust by this point that I know my numbers. Yes, of course, they will be verified down the line, but giving all of the information upfront makes the whole process smoother! Not confident on how to run your numbers accurately? Join the Beginner's Group Coaching program starting February 1st to become a Deal Analyzing Expert in no time! Register here now as space is limited! Happy house hunting!