To be a successful investor, you have to comfortably wear different hats. You’ve got to know how to hire and manage people, and you need to know construction basics. You need to understand the local real estate market. You need to have excellent time and money management skills. Perhaps most importantly, you need to be able to find profitable real estate deals. As a private mortgage lender, we see our borrowers successfully employing many different strategies to do that. This article is Part 1 of our series on finding real deals. Before you begin, go ahead and check out the series Introduction published previously.
Private mortgage lenders – any lender for that matter – want to make sure that borrowers not only repay their loans, but also pay them on time, so lenders can deploy their money elsewhere. The best way to ensure repayment is to lend to responsible and competent borrowers who are vested in the transaction. When it comes to private mortgage lenders, to be “responsible” and “competent” means not only being able to put a great investment property under contract, but also to realize your rehab vision on time and within budget. In other words, we want to work with borrowers who are well positioned to make a profit.