Epic Real Estate Investing - 5 Golden Rules of Private Money that You Can't Afford to Break | Financial Freedom Friday

Episode Date: September 5, 2014

Matt has built his personal portfolio of almost 250 units from the ground up, without using a dime of his own money or a point of his own credit! If you would like to make a similar claim one day, you’ll have to abide by the rules of the private money game.   Of course, complete integrity and honest communication are absolutely critical to raising private money. These traits will set you apart from the majority of investors out there, and will provide you money partners for life! On today’s video, Matt will expound on these ideas and share the 5 golden rules of borrowing private money. ------- The free course is getting a facelift and the new version will be released soon! To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E ducation P roperties  I ncome C oaching   Learn more about your ad choices. Visit megaphone.fm/adchoices

It's time for Financial Freedom Friday with Matt Terrio. If you're a fan of the podcast, you've heard me say more than once that I have yet to use conventional financing in any of my real estate transactions. I mean, I've built a personal real estate portfolio just shy of 250 units without using one dime of my own money or one point of my own credit. I mean, primarily out of necessity in the beginning, but now out of preference. You see, putting private money to work is a lot easier than dealing with banks. And quite honestly, it's more fun. It's more fun to take people with you rather than an institution to share in the success. So if that sounds like something you'd like to do, I mean, if you want to dip into the private money sector to start building your real estate portfolio,

there are some rules you're going to need to abide by. And if you abide by these, it's going to be very possible and probable for you. And these are hard and fast not to be broken for any reason. type rules. All right. One, ask your private money lender what kind of return they'd be open to. Don't offer a return. There are two reasons for this.

One, if they aren't a savvy investor, the double-digit returns that you are capable of delivering can scare them and lead them to believe that you're representing a risky investment. Or one, that's too good to be true. I mean, we hear that a lot. Two, they may be and often are satisfied with much less than you think. confidence in the value that you bring to the table and give your private money lender what they ask for. If they ask for more than your deal can support, then just counter their request. Very simple.

Two, honor your word. This means saying what you'll do and doing what you'll say. Translation, pay them what you owe them when you said you'd pay it by any means necessary. That's a very important one. Three, do not share your investment challenges with your private money lender. I mean, as long as they get paid, hey, they're happy. They don't need to know how tough it's been this month or how close you might have been to losing all of their money.

None of their business. Just pay them. 4. Asking for an extension is a last resort. I mean, you've got to creatively exhaust every single other option before you bring them into that conversation. Okay? Number five, the very second you know that you're going to break your word, initiate communication. You call them.

them. I mean, we don't ever want this to happen, but sometimes it does. And if it happens to you, don't wait. Don't stick your head in the sand and don't dodge their calls. I mean, as soon as you know irrefutably that you won't be able to make good on your word, you need to be honest about it with your lender. Waiting until the last minute, that's an absolute no-no. All right? Keeping your word and being straight with your communication at the appropriate time is your unfair advantage in this business. You see, it's your unfair advantage because so few people operate that way. I mean, of course, there are a lot of good heart of people with the best of intentions out there in the business and personal world. But for one reason or another,

as hard as they may try, they just find it really difficult to keep their word. I mean, they'll fabricate a million excuses and they'll put off uncomfortable or downright scary conversations until the last moment, if not going to hiding to avoid them altogether. Which is, that's just all, it's unfair to all parties involved. are gargantuan rewards for people who conduct their business with integrity and transparency. Do that and you'll have money partners for life. Don't? Well, private money won't be a part of your business for very long.

Be a person of veracity. You'll like who you are and others will too. I'm Matt Terry of Epic Grill Estate and I'll see you next week on another episode of Financial Freedom Friday. This podcast is a part of the C-suite radio network. top business podcasts, visit C-sweetradio.com.