Kansas City, MO, July 26, 2018 --(PR.com
)-- “We hear horrible stories of lenders getting scammed because of lack of knowledge in the industry and the reluctance for people to spend a few dollars getting expert advice,” said Kim Tucker real estate investor, private borrower and private lender, and the co-founder of MAREI. “We are taking the opportunity to share the Good, the Bad, and the Ugly with our members at our August meeting so they can be better participants in a private transaction.”
Private Money Defined: Going by many different forms of private money, private lender, private partner, and more, private money is just that a funding source for real estate investment (or other investment) from a private individual that the borrower knows personally and that knows, likes and trusts the borrower and their investment enough to put their own money or credit into the transaction.
The Advantage of Going Private: Private Funding is so much easier than working with a traditional lender in that there is not typically a credit check or an appraisal process on the home so the transaction can close that much faster. And unlike working with a Hard Money Lender who wants points plus interest, a private money lender is typically cheaper, although they could cost more, depending on what the private parties negotiate. Some want interest, some want a flat fee, some want a part of the profits.
Why Would Someone Lend to You: Think about it, the average person has two places to park their money, in the bank earning virtually nothing or in the stock market that can be very volatile. If a real estate investor comes along that has a proven track record of real estate investment and can offer them a decent return that far beats the bank, but is less risky than the stock market.
What If I Don’t Have a Track Record: Most private money lenders and partners want to work with an investor who has completed a few deals, although some will lend to a brand new investor if the deal is sound. If you are brand new to real estate investing and have no track record of your own and have no experience at all in the industry, the next best place to find funding other than your own bank account is to work with the Institutional lenders at your local REIA group.
Where and When: Join them Tuesday August 14th from 6 to 9 pm at the monthly meeting of Mid-America Association of Real Estate Investors at the Holiday Inn at 8787 Reeder Road in Overland Park, KS. To learn more and to register to attend, please visit www.MAREI.org. Members and First Time Guests attend free. All others can join, pre-register for $15 or pay $25 at the door.
Mid-America Association of Real Estate Investors (MAREI) is the only Chapter of National REIA in Kansas or Missouri and has been serving members in the Kansas City Metro since 2004 with a monthly meeting every 2nd Tuesday of the Month. Offering opportunities live and online to network, learn and to build wealth through honest, ethical, real estate investment.
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