Successful Investor "exit strategy"

Obviously, your success depends on your ability to act quickly. When
you become an investor in-the-know, you know exactly what type of
property you are looking for and exactly who can fund your
property. Likewise, you know your "exit strategy" and how you are
going to make profits. This is all part of your "wealth strategy".

If a private hard money lender tells you that they prefer a 3 or 4
bedroom, 2 bath home, with garage, do you think it is a good idea
to expect them to fund a one bedroom, one bath condo? Or if they
tell you that they prefer a suburban location to a rural location,
do you bring them a mobile home located 60 miles from the nearest
gas station? Common sense tells you that this will not work, but
real estate investors make this mistake each and every day by
attempting to force properties, that they have not properly
screened on private hard money lenders and expect them to "break
the rules" that made them successful money lenders?

The fact that you are seeking this knowledge places you in the top
10 percent of investors because if you KNOW what you need to KNOW,
you are much more likely to be successful as an investor. Play by
the rules and don't try to make up the rules as you go. Remember
win-win. Greed has caused many a real estate investor to fail.
Trying to make too much profit on a single property for example
will cause the property to "linger" on the market. All the while
you'll be paying for interest and eventually the cost of the money
will eat up much of your profit. Isn't it better to do more deals,
reduce your risk, and build your relationship with your private
hard money lenders so they know that lending you money is a good
thing?

It is interesting to see some real estate investors expect to get
something for nothing. These "investors" have unrealistic
expectations. For example, many investors think that private hard
money lenders should loan 100% on any type of property and that as
an investor they should not have one cent out of pocket. What do
you think a private hard money lender will think of you if you make
it quite clear that you're not willing to spend any of your own
money in the deal? They will ask themselves one simple question;
"Why do I want to loan money to someone who is afraid to use any of
their own money?" And the second thing that comes to mind is:
"Wouldn't that type of investor be the type to just "walk away" if
the property didn't sell?"