Finding IRA Money Lenders
Where are all these people who have IRA’s with lots of money?
People with IRA money seem to have a limited amount in their IRA (duh). It always seems to happen that once you get to know a private lender who is easy and fun to work with, they have reached their maximum lending criteria. Understand I am making fun of myself! This happened to me because I turned a loan down today for $150,000, because I was also tapped out in my IRA. I had lent out my IRA money to below my comfort level. (you must have extra, so you can foreclose if it is lent from an IRA). Well, I just happen to have a lot of opportunities to have a very prosperous new year and in need of $500,000. I have deals that when I close will make a very nice profit for both me and the private lender. So, what do I do? Go back to the basics! Agh! This article will let the lenders out there know what to look for when making a private loan to a successful borrower and to the borrower what is important to the lender and the possible questions they may ask. This is not a complete list of questions but will allow the reader to make a better decision and to be a better borrower.
How do you find private lenders with IRA money to lend? Start by asking your friends and family for the investment into your project. Create a marketing campaign, network with potential IRA holders. Talk to people! I have been able to use investors’ money often and been able to support them in their dreams to financial freedom. I have discussed with them the new opportunities to build that nice nest egg. I have talked to them about the safety and security of the investment and how the money will be “churned” over throughout the year in various properties. I explain to them it is not the interest rate, but the speed of churning over those dollars that provides a great return on their nest egg dollars.
Be prepared to provide answers to their many questions. Now the reason why I am bringing up each of these questions, is if you write down your answer and have it ready when the question pops up, your chances of getting the private loan is good. If you don’t then you probably will not get a returned phone call, email, text or investment in your project
Here is the list of possible questions you should be prepared to answer:
- What is the return I will receive on my money?
- What is the loan to value?
- What position is the loan in?
- Do you have a scope of work?
- How do you mitigate your risk?
- Who is your contractor?
- Who is your realtor?
- Do you have 3 months of reserve in your bank account? Verified?
- What is your exit strategy?
The process of raising capital is a never ending search. If you like people and want to earn a great income, then churn 1 million dollars twice a year for 10% profit. It will make you life easy and pleasurable.
Something I hope you are interested in doing.
