home Cherie Constance
Independent Commercial Financing Specialist
(t): (800) 341-9918 (e): cconstance@privatemoneyexchange.com


1st Real Estate Deal: Gives You the Competitive Edge : 03/19/2012 04:03 AM UTC

If you've ever been without a job, or tried to break into a new market, you know that the first question asked is: "What's your experience?" It's a relevant question to be sure, but for the novice trying to succeed, it's incredibly frustrating. How are you supposed to get experience if no one will give you the time of day or the ability to "get experience, right?"

I've been there. When I first jumped head first into the deep end of real estate, I had no money, no experience, and no cre-dit. All I had was the shirt on my back, a job as a bagger at a local grocer, and some serious ambition and gumption. I went to banks, family, friends of family, and finally co-workers to get funding for my first real estate deal. To many people, this zit-faced, gawky, first-year college student was a far cry from a seasoned investor and no one would give me, or my dreams, the time of day. I mean, who wants to give their hard-earned money to some snot-nosed kid who thought he was going to hit gold in real estate? But the fact is, I never gave up and one of my last resorts, the pharmacist at the grocer, finally gave me a shot-- the cash to begin my investing career. I kept asking and finally I received!

Unfortunately, most people can only handle 1 to 2 rejections before they throw in the towel. They can only give it so long before they feel dejected and frustrated and move on to another "money-making" venture. Yet, I'm here to say that the only real ingredient to long-term success in real estate is sheer hard work and persistence. Probably not what you wanted to hear, but absolutely true.

YOU Have More Options

The difference between me back then and you now is that you actually have more options than I did. You have access to a network of lenders and a medium to get a private loan for your first real estate deal.  Private Money Exchange gives you the necessary break that you need to finally shatter the glass ceiling separating you from your real estate goals.

We've had many new investors who couldn't get an audience elsewhere finally succeed with us. And we're proud that we can help so many people get the needed experience and partnerships to enter the real estate race at a good clip.

Your first successful deal IS the deal breaker. It's what will finally separate
you from the wanna-bes and put your firmly in the "Real Estate Investor" camp. We're here to help you cross that divide.


Your First Deal Starts Here!

If you want to learn more about our lending program and you have a deal that needs funding, go to the "Apply for Quick" under the "Borrow" Tab on this site and fill out an application. There are no fees to send us your deals! We're ready to give you the chance you deserve and experience you need to get that extra edge on your competition.

Should You Get a License? : 02/08/2012 12:02 PM UTC

Back in the day, many real estate gurus took the “Don’t Get Licensed”  hard line. The reasoning behind this was that once your licensed, it increases the liability you have on a deal.


This is actually a good thing. Being required to disclose everything on a deal keeps you honest and protected in the transaction because nothing is hidden and nothing will come back and bite you in the end later.  Remember, a dollar earned unethically is ten dollars lost in time worrying and stressing over possible pending consequences.


But that's not the only reason you should have your license. Below I've outlined three very good motives behind why you should begin the process of getting your license today.



What a License Will Do: 3 Reasons A License Will Make Your Life Easier


1. Faster Way to Offers: The fastest way to put a house under contract is to not be beholden to the agent that holds the listing. By being licensed yourself, you can go to the MLS, identify the potentially Golden Deals, and click the button that auto-populates the property information into the Purchase and Sale Agreement. Then you simply insert the terms and conditions, the price you’re willing to pay, and the date you want to close.  After that you merely email it over to the listing agent and the offer is written.


2. Faster Way to More Paydays: A license won't make you an expert or give you street cred (only experience will do that), but it will give you the ability to do things you can't do without it--like making fees or commissions (in certain states) on deals you refer to the Private Money Exchange and PMB International networks. If you don't want to be limited, don't limit yourself!


3. Faster Way to Networking: Going through this class gives you an opportunity to meet new people – both the students and the trainers – who are interested in real estate. And with your license, you’ll also be able to attend meetings and functions with the local Board of Realtors, another good networking opportunity.


Above and beyond this, going through the real estate license course can help you better get into the "squirley heads" of Realtors and see how they think and approach deals (no offense to the Realtor Readers... but c'mon, we've all dealt with a difficult realtor).


I'm such a firm believer on this one that I'm personally getting my license in California and having the members of my funding department do the same in states throughout the country. So if you're waffling on this, think about the benefits. They certainly outweigh all the negatives you once heard from the real estate pulpit!


Happy Investing!

Set Up Your Own Private Money Vault : 01/17/2012 05:01 AM UTC

A private money lender is a broker. You don’t have to have any money to do private money lending; you don’t have to have good credit; you don’t have to have a job; you just need to know how to do it.  This starts with establishing your private money vault.

What does the Private Money Vault look like? Here are 11 ways to think of it:

  1. Your private money vault is not a physical place. Rather, it is all of your sources for available money to lend.
  2. Think of private money lending as being a “middle man” – you identify a source of money and bring it to an interested market.
  3. Think of your private money vault as a grocery store.  The store sells groceries.  You sell money.  You want customers to be loyal and depend on you, not “shop you”. So, just like a store can never run out of groceries - you can never run out of money.
  4. Think of money as interest rather than a tangible product - $1 = 36 cents (36%), versus $1 = lunch.
  5. Think of money as inventory. The more you have just sitting around, the more it costs you. It’s worthless unless it is sold.
  6. Don’t have more inventory than your market is ready to use. Establish a marketplace before you create the inventory.
  7. Private money must be quickly available (liquid) - wired in 72 hours.
  8. Private money projects typically don’t qualify for conventional financing.
  9. Funding must be fast because good deals aren’t just sitting around waiting.
  10. The faster you can close, the more you can charge, so you must have procedures in place to quickly complete the due diligence to establish risk, and to quickly prepare documents.
  11. Don’t borrow money that requires immediate payments. Wait until you are ready to make the loan. Start by just arranging sources of money. If  you don’t have all the facts yet and you don’t have a market yet, wait until you are ready.