Lenders also have Wealth Strategies

Which type of property do you want to concentrate on--residential
or commercial, single family or multi-family?

Lenders also have wealth strategies. They do not lend on every
single type of property in every single geographical area. Some
lenders concentrate on specific types of property and some
concentrate only on specific areas. Some will not lend on rural
property. Some will not lend on land. Some will not lend on
single family. Some will not lend on commercial. Our investors
have learned this and saved themselves a great deal of time and
enabled themselves to become much more profitable by creating a
wealth strategy that is compatible with the wealth strategy of
their lenders. This is fundamental to building a relationship with
a lender. Your lender will always want to know your "exit strategy"
and exactly how you plan to use the money.

A man went into a bank and almost on hands and knees, begged for a
loan. He needed the money desperately to feed his family. The
banker okayed the loan and in no time at all handed the borrower a
check in the amount of the loan. The banker said, "I'd suggest you
go right out and buy some food." The borrower looked at the banker
indignantly and and answered, "Don't tell me what to do with my
money!"

Imagine yourself as a private hard money lender. People call you
every day asking you questions about your money. Few of these
callers actually have a specific property. Many of the questions
are hypothetical at best and vague at worst. Lenders tire of this
very quickly. They expect serious investors to do their homework.

They expect serious investors to have excellent properties. And
they expect serious investors to have prepared a "package" or
"application" to be considered for funding. If the private hard
money lender is based in New York City, is it likely that they
will loan on a property in rural Kansas? A few do, but most
restrict themselves to specific types of properties and specific
areas.