Hard Money Lenders

By Mandy Sheckles
Don’t be afraid to ask for money. Ask other real estate people where they get their cash. Once I was at a title company for a closing where there was another real estate investor that just happened to be waiting in the lobby the same time I was. I asked him where he got his money. He reluctantly gave me the name of his “money man,” but stated that he did not have his phone number with him. I then inquired about the man’s terms. The terms were that over the length of the loan of twenty years, the interest rate was fixed and no additional expenses were attached. That is a sweet deal for a rehabber. I then persistently called the real estate guy on a daily basis for two weeks to ask for the money man’s number, with my calls always rolling into his voice mail. The rehabber would not return my calls because he did not want to give up the source of his cash. This is very common in the real estate business. If the cash supplier begins to work with other people, this means that there is less for you. I decided to change tactics.

The next time I went to the title company, I asked them where the other investor’s money came from. BINGO! One of the title ladies told me about the money man and how he funded several real estate investors. She was able to look in her organizer and give me the money man’s phone number within a matter of seconds.

(Attorneys, title workers and real estate agents are excellent sources of information. Create a network and use it!)

I gave the money man a call. Initially, he asked me several hard questions about why he should invest in me, what made me a good risk, what was my track record, what were my goals, etc. Luckily, I had been through this before and had been expecting the questions. I was able to satisfy him with my air of confidence and my specific goals. I walked in liked I owned the place, and he didn’t give it a second thought.

Mandy Sheckles is a property rehabbing guru from Indianapolis, IN.

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