I’m a total newbie to all of this, I’ve been doing research on real estate investing. However, there are a few things I’m not clear on as far as the logistics of the business as well as getting a list of buyers. My goal is to basically be a “real estate consultant” were I an the “middle-woman” between the seller and the buyer. I want to work with cash buyers only. I have never purchased a home before so I’m not sure if I have to have a real estate license to do what I want to do. Also I was reading your blog about getting started and you suggest that if someone is interested in getting involved in this business that they need to have all their paperwork on file in the various states they are planning to do business in. Is it possible to just have your business entity set up in one state and just do business in other states as the referring person?

Also because I’m new to all of this I’m not sure how to obtain the proper contractual paperwork that will guarantee that I will get paid in the transaction. Also financing is an issue as I don’t have a private money lender nor am I able to qualify for a loan incase I have to put up the money for the deal in the process of having the buyer in place. Hence the reason I want to learn how to have my cash buyers in place and ready to go and I just match up the properties to their specific investment requests. Is it possible to do that without a real estate license?

Also, are either of you willing to mentor someone like myself who is new to all of this but is interested in learning how to do this business?

Thanks in advance for your help and your response. I look forward to receiving a response from you all soon.

Tamishia Clayborn, M.B.A.

It seems to me that Thomas Kish says what he does about private lending in order to sell more of his “business credit” courses.

On the same page where you cut and pasted the info above, he said:

“Private Lending interest rates range from 17% to 29%.”

and “Private Lenders also charge “points.””

I don’t know what private lenders he’s talking about, but Trevor and I have gotten private loans between 6% and 10% consistently.

I have never paid points to a private lender before either. Most of my private lenders don’t even know what points are.

Mr. Kish must be talking about something completely different. Maybe he’s talking about some kind of institutional “private lenders.”

We’re talking about going out and getting funds from everyday people who want to make a better return on their investment dollars backed by real estate . . . better return meaning 6 to 10%.

“Does Private Lending sound like a good deal to you?

- Private Lending is expensive.

- Private Lending is harder to get than you think.

- Private Lending is not legal in some cases.

- Private Lending is a lose/win deal in most cases.

- Private Lending takes a long time and has plenty of paperwork required.

- Private Lending is just BAD.

So, why would you want to use Private Lending?

I have created a better alternative to the Private Lending sources most people turn to just because they don’t know other places to get money.”

The alternative being (Unsecured)Business Lines of Credit. He seems to make a good case to me. Do you have a counterpoint? When does it make sense to use private lending vs. business lines of credit?

Thanks for the comments man! Hey, I was once just getting started in real estate at one point… and now I’m just paying it forward with as much free info on real estate investing as I can… with a few top quality paid products mixed in to pay the bills for the site.

To get the powerpoint presentation head over to Patricks blog:

http://www.mustknowinvesting.com/freestuff.html

You can opt in and download the stuff there.

Let me know if you have any other questions.

Chat soon,

- Trevor

Patrick or Terry,
Heys, I thinks its great that you are giving out this free information. I am impressed to say the least. I have a host of questions and some of them have been answer through your posted questions and answer segment of your website. However, and maybe I have missed it, but I thought I heard someone ask about a presentation that you were giving and allowing people to download. Is this so and where can I down load this power point presentation? Or can someone send it to me? I have other questions, but 1st, I need to go through the videos that were sent. Thank you for your answers in advance. I will be in touch.

Stephen Stegall Jr.
515202.7563

I apologize about the huge delay in getting back to you….
I haven’t had access to my email for a few days and
I’m way backed up.

Anyhow, I don’t remember what I said in the video… but
I went ahead and put up a page w/ a 2 hour training video
that we just did in our Private Money Blueprint coaching
program for our students.

Here’s the link:

- Trevor

I watched all your videos and was in awe. I’ve been in commercial lending for years and it never crossed my mind to do something like this. I heard in one of your videos that you were going to make some slides or something like that available for establishing credibility during presentations or something like that. I looked for them high and low and didn’t see them anywhere. Did I misconstrue something or were they only available for a limited time? Please advise and know that what you’re creating here is such a huge avalanche of knowledge that will lead you both down a path to limitless prosperity. Lead with the seed, which you are doing, by helping new investors learn no matter what their knowledge or experience. This has truly changed the way I look at things and now the things I look at have changed monumentally for the better.

Thanks
JR Keeling

Thanks for the comments guys.

Yes, SEC compliance is pretty darn important… and not that difficult. In my state (Oregon) if you are taking private money loans “1 to 1″… meaning you have one lender for one deal… not multiple lenders to a deal… and you are not actually marketing… you don’t have to register or anything. They define marketing as anything other than personal networking basically… even a website.

But, in Oregon (and I’m sure many other states) one particular private lender can’t lend more than “x” # of loans in a year… or they’re considered a mortgage lender… and have to be licensed. In Oregon it’s something like 10 loans in a year (or at a time… I’ll have to refresh my mind to make sure)… which 90% of your lenders won’t touch.

In Oregon (and many other states are this way too)… once you start to take on multiple lenders for a deal… they require you to get “registered” w/ the state securities office… but in Oregon it’s only a few hundred bucks… then once you’re registered you can do any type of marketing at all… of course as long as the proper disclosures are on your marketing.

It would be 45 hours of video if I were to go through every state and their regulations… since all states are slightly different… which of course wouldn’t be a very effective use of my time since I have 2 businesses to run.

But… like I mentioned in Video 5, Patrick and I are going to be taking on a few students (between 10 and 20… we’re not sure yet) here soon and we can then do state specific stuff w/ them since there’s less people involved… and that would make it make more sense for Patrick and I to take time away from our businesses to put in a big time effort.

No matter how much I love giving away as much content and instruction for free (which I do… more investors should “pay it forward” like this)… in these indepth topics… it makes sense to create a very high value and highly actionable coaching program… and teach a few people more closely.

Anyhow, Barry and James… SEC stuff is pretty easy… just need to find the right resources and stick w/ them. But, as long as you’re recruiting through word of mouth and networking… you don’t have much to worry about w/ the SEC stuff… and truthfully it’s much easier to get private money by networking than it is to “cold call” or direct mail someone who you have no affiliation with… but there are some very effective ways to find private money lenders through other means other than networking.

– Trevor

“Great, Just the kick in the pants I need to put me out where I need to be. Thanks for caring.” – fsboladysc

“Patrick, you straight up rock! I would have paid big bucks for what you have provided for free. I hope I can catch up with you for additional mentoring.” – Kevin Donovan