You are looking in the wrong places … - Posted by Merle
Posted by Merle on October 28, 2000 at 15:56:53:
Isn’t it amazing how we are such creatures of habit and how we tend to copy one another?
Post after post describes these high cost private sources for funding. 3 points and 12% interest, etc.
We have used private funding for 16 years. We’ve never paid more than 11% interest … presently paying 9%. Never paid a point to any of them.
There are (I believe) millions of dollars sitting out there in CD’s, savings accounts, and other low return investments. The owners of these funds would love to earn higher rates … but they are afraid to try anything other than the traditional “safe” methods.
We have not used banks for financing for about 15 years. We’ve purchased more than 300 (lost count) properties … presently have 121 houses … all financing witrh private investors at 9% interest.
Stop looking for “investors” and start looking for folks who need to earn more money on their savings. People who wouldn’t know “hard money” if they saw it. Advertise your rate … tell them what you do and how you do it.
I reads once that many people have a weight problem because they allow the menu to control what they eat. And, guess what! Menus are designed to sell food! The restaurant owner doesn’t care about your weight problem … only his pocket book.
Take control of your business. You decide what will work for you. If you can’t afford to pay 18% interest (and who can?), then advertise the rate you can pay. Look for the person who will accept a lower rate.
We have not experienced a shortage of loans since we began. Where do you find these folks? Well, first of all, they are not reading the investment ads. And especially not the real estate ads. They read ads pertaining to their life and their day-to-day needs.
They read publications offering special consideration to retired people. They read garage sale ads. They go to senior citizen clubs and organizations.
They want safety first! They want a higher return … but only if they can believe their money is completely safe and secure. Just make sure that whatever you offer them does exactly that and you will soon be turning away money. I turned away just over $100,000 this past week. We are not buying any more houses til after the holidays.
Read some of the other posts I’ve written about our investor program. Do a search for “Merle.” I don’t sell any books, tapes, or courses … but will be gald to answer your questions … either posted or email. All answers posted here.
Think! Think! The money is out there!