Real Estate-Private Lender Valuation :: Page 2

Archive for Real Estate-Private Lender Valuation – Page 2

Private Money Mastery Personal Coaching

by Professor

September 6th, 2010

privatemoneylendingcoaching-200x200

An intensive personal 8-week training
to bring you to getting the check

Here’s How to Enroll in the Private Money Mastery Program

The Private Money Mastery Program is a short-term intensive 8-week training the will give You the entrepreneur, the “real life” skills, ability and every Resource you need to go out and find those high-net worth individuals who are interested in investing in your business and then actually convince them to write a check.

The system is based on Professor Richard Odessey’s GRAD formula (Get Ready, Attract, Deliver). Richard is both a longtime entrepreneur and a Private Investor himself. You will learn directly from Richard and the CEO of his Angel Investor Group.

And you will get personalized instruction that you can apply to your very own business and go out and raise the capital you need to succeed.

Here is the knowledge and skills you will develop:

I. Get Ready

When you meet with those Angel Investors (or anyone else who might invest), you’ll want to be totally prepared. Imagine the confidence you’ll have knowing you have a great plan, a great investment and that you can easily respond to anything an investor throws at you.

So, well start off by helping you:

create your credibility kit including an impressive bio, business summary, and testimonials
create your board of Advisors and Strategic Team to bolster your credibility and appeal to investors
For real estate investors we’ll show you how to put together your property package
Create your offer that will stimulate the greed glands of your investors without giving away the farm.
Make sure you have the proper “investor-friendly” entity structure
Create your 1 page investor profile (sophisticated investors with big bucks will expect this).
Create a timeline so you can accomplish your goads in weeks, not months or years

II. Attract

In the “Attract” phase you will develop the tools and resources to find the investors that are right for your business and learn how to get them interested in investing.

You will:

Work with your list of contacts and learn how to expand
Get an in depth understanding of investor psychology and learn what buttons to push
Develop an “elevator pitch” that will catch the attention of investors
Learn how “Get the Meeting”
Develop master networking skills.

III. Deliver

This is the “show me the money” part of the formula. It consists of:

Developing a Powerful, Concise and Effective powerpoint presentation
Recording it.
Having your presentation professionally critiqued
And practice, practice, practice
Going over questions you will be asked and how to answer them.
How to ask for the money

If you agree to put in the work, we can show you how to master all these skills, and go out and get the money.

Private Money Mastery is an 8 week intense program. You will be mentored by 2 master instructors: an experienced entrepreneur/and investor, and the CEO of an Angel Investor Group.

This is a totally unique program devoted to skill mastery and is only for entrepreneurs willing to do whatever it takes to succeed.

Please Fill out and Submit the Application below.
Richard will contact you to set up your first meeting.

Categories Access to Private Capital, Business Plan for Private Lenders, Credibility Building, Deal Structuring for Private Lenders, Equity, Legal Issues, Presentations, Private Money Investment Docs, Private Money Tools & Plans, Real Estate-Private Lender Valuation, Secured Debt, Unsecured Debt

Private Money: Will Your Deal Attract It?

by Richard Odessey Ph. D.

August 10th, 2010

	Want private money? Well, as you might have figured out, you can’t just walk up to a potential private lender, tell him or her about your “deal”, and expect them to write a check. No way. If you want to be successful in raising private capital for real estate, you have to learn how to “attract” private investors to you.

So what’s the secret? Or to paraphrase a famous movie title: “What do Private Lenders Want?” The short answer is: put yourself in the private lender’s shoes, and think about what you would want before you invested your children’s inheritance is some real estate deal.

Now, what I’m about to tell you may shock you. It’s not the “easy-no effort” seminar version that gets you all excited, but won’t put a nickel in your pocket. These are answers based on the experience of raising “real money” from “real private investors”.

First, know this. Your private investors are walking around with an invisible antenna over their heads that is tuned to only 1 station: WIIFM or “What’s In It For Me?” Unless you can explain that clearly, quickly and concisely, you’re out. Private lenders have no patience for people who beat around the bush and waste their time.

Second, as a sophisticated private investor, I know that not all deals are good deals, and not all good deals (e.g. good for you) are good for me. So, don’t give me a canned elevator speech, and expect me to be excited and whip out my checkbook. First, “show me the money.”

Third, your private lender is as skeptical of the real estate market as the general public and doesn’t necessarily think it’s a “great opportunity”. How is your approach going to overcome those concerns and in fact benefit from them?

Next, anybody who has become wealthy enough to have capital to invest, did not get there by taking excessive risk with their money. The reason why lottery winners generally end up poor again is because they never learned this principle.

Or as Will Rogers once said: “When it comes to investing, I’ve always been more concerned with the return of my money than the return on my money.”

If you want private money, you need to explain to the investor, how he is protected from losing his principal and how he is going to get his money back (ROI = Return OF Investment).

And you must address the question of risk. Unlike most people, private lenders have fairly low risk tolerance. If the risk level in the deal exceeds their risk tolerance, no offer of a return is going to convince them to place their capital with you.

And the Final and probably the most important consideration for the Private Investor is: “YOU”.
Angel investors have a saying, “Bet on the Jockey, not the horse”.

Think about it. Would you invest your money with someone you didn’t know or respect, regardless of how great the deal was? I don’t think so.

Are you a person of high integrity, who does what she says she’ll do? Do you have the experience, knowledge and expertise and the team to see this deal through to a successful conclusion? And Trust me: No private lender is going to entrust you with their capital, unless these questions are answered and demonstrated to their satisfaction.

Categories Angels & VC's, Business Plan for Private Lenders, Credibility Building, Deal Structuring for Private Lenders, Featured Home, Legal Issues, Real Estate-Private Lender Valuation

Seed Capital: Will Your Startup Business Attract It?

by Richard Odessey Ph. D.

January 25th, 2010

	Want Seed Money for your Startup? Well, as you might have figured out, you can’t just walk up to a potential private investor, tell him or her about your “Great Idea” or your Company, and expect them to write a check. No way!

Want Seed Money for your Startup?

Well, as you might have figured out, you can’t just walk up to a potential private investor, tell him or her about your “Great Idea” or your Company, and expect them to write a check. No way!

If you want to be successful in getting startup funding for your early stage business, you have to learn how to “attract” private or Angel investors to you.

So what’s the secret? Or to paraphrase a famous movie title: “What do Angel Investors Want?”

The short answer is: put yourself in the private equity investor’s shoes, and think about what you would want before you invested your children’s inheritance is some startup company.

Now, what I’m about to tell you may shock you. It’s not the “easy-no effort” seminar version that gets you all excited, but won’t put a nickel in your pocket.

These are answers based on the experience of raising “real money” from “real private investors”.

First, know this – Angel investors are walking around with an invisible antenna over their heads that is tuned to only 1 station: WIIFM or “What’s In It For Me?” Unless you can explain that clearly, quickly and concisely, you’re out.

Angel Investors and Venture Capitalists have no patience for people who beat around the bush and waste their time.

Second, as a sophisticated private investor, I know that not all ideas are good ideas, and not all good ideas (e.g. good for you) are good for me.

For example “lifestyle” companies (companies that will create an income for you but never build huge equity for the investor) are not investment candidates. So, don’t give me a canned elevator speech, and expect me to be excited and whip out my checkbook. First, “show me the money.”

Or as Will Rogers once said: “When it comes to investing, I’ve always been more concerned with the return of my money than the return on my money.”

If you want private money, you need to explain to the Angel investor, how he is protected from losing his principal and how he is going to get his money back (ROI = Return OF Investment). In other words you need a realistic exit strategy—preferably more than one.

And you must address the question of risk.

Unlike most people, sophisticated investors have fairly low risk tolerance. If the risk level in your business plan exceeds their idea of an acceptable and calculated risk, no offer of a return is going to convince them to place their capital with you.

And the Final and probably the most important consideration for the Private Investor is: “YOU”.
Angel investors have a saying, “Bet on the Jockey, not the horse”.

Think about it. Would you invest your money with someone you didn’t know or respect, regardless of how great the idea was? I don’t think so.

Are you a person of high integrity, and do you do what you say you’ll do? Do you have the experience, knowledge and expertise and the team to see this business idea through to a successful conclusion?

Trust me: No Angel investor is going to entrust you with their capital, unless these questions are answered and demonstrated to their satisfaction.

Categories Angels & VC's, Business Plan for Private Lenders, Deal Structuring for Private Lenders, Private Money Tools & Plans, Real Estate-Private Lender Valuation

Private Money: $300,000 in 3 Months

by Richard Odessey Ph. D.

November 23rd, 2009

	The 4th session of the Advanced Private Lending Summit (APLS-1009) completed just a couple of weeks ago and, as always, everything gets better and more enriching every time it happens. (Keep Reading to Find Out How You Too can Have The Same Success. Watch the short video at the end of this article.)

The 4th session of the
Advanced Private Lending Summit
(APLS-1009) completed just a couple of weeks ago and,
as always, everything gets better and more enriching every time it happens.

(Keep Reading to Find Out How You Too can Have The Same Success. Watch the short video at the end of this article.)

Attendees to this APLS came from California, Utah, New Jersey, Texas, Georgia, Illinois, Connecticut, and Maryland.

Their backgrounds and their experiences were:

A business consultant and coach for small businesses in the South and Northeast,
Beginning real estate investors,
A long-time successful rehabber and contractor now taking advantage of the unbelievable prices of 2-flats to 6-flats in the city,
A husband and wife team with 25 years property management experience and now beginning their own investments into multifamily properties, and
Long time business partners in the rehabbing and flipping niche – now private lenders themselves as well.

Special to note here is that one attendee, Stefan Szlembarski from Illinois, joined the InvestorWealthNetwork.com three months before coming to the APLS and learned what he needed to take the first big step and landed a $300,000 investor for his business.

Stefan also took advantage of the InvestorWealthNetwork.com, ‘members only discount’, for the Advanced Private Lending Summit and joined us here in Atlanta to really turn the fire up under his new private money generating abilities.

(Watch this clip of the 1st day of the APLS where Stefan tells us about his successes just from the information he got from his InvestorWealthNetwork.com Membership, AND USED to raise $300,000.)

Categories Access to Private Capital, Deal Structuring for Private Lenders, Finding Private Lenders, Money Training Center, Real Estate-Private Lender Valuation

Do I Need Good Credit to Get Private Investors?

by Richard Odessey Ph. D.

June 13th, 2009

	I just got this email: Will bad credit hinder me from getting a private investor? Sincerely, Tammy Well, Tammy the answer is: Your credit has absolutely nothing to do with raising money from a private investor.

There are 2 reasons:

1) The private investors cares about the 5 key secrets:
-What’s in it for him (or her)? – that is the return on investment
-Return OF Investment – the soundness of your exit strategy
-Risk – how well have you structured the investment to minimize the financial risk to the investor
-Credibility – Are you a company? Does your company have experience, advisors and professionals that can make sound decisions.
-Trust – do you have a relationship with the investor. Have you built up his trust that you can do what you say?

2) The second reason is that the investment should not be about YOU. It’s about your company. After all, if you invest by buying shares of IBM or General Electric, do you know the credit score of the CEO? Heck, do you even know who the CEO is? Does it matter? No, because you’re investing a company with a track record and resources to carry out it’s mission and achieve its goals.

You should present your investment the same way. Listen to some of the interviews with private lenders, and our articles on structuring the financing for your business and creating an impressive business plan.

When you’d like to go to the next level, you may want to consider attending our Advanced Private Lending Summit where we work with you 1 on 1 to create your entire private lending program including your own personalized presentation to private lenders.

EVERYONE who has attended has loved it, and are now busy raising money from private individuals. We hold our Summit 2 times a year here in Atlanta.

Check your Members’ Area for the schedule AND get a Members Discount on the Tuition.

Here’s a comment from just one of our last attendees:

“..Save your money as quickly as possible [so you can go to this].

I was at that seminar and now will be giving my presentation to a few MDs this week.

Having the ability to practice it in front of the group and hear Richard’s insightful critique sure did help. More to follow, after the presentation.”

– Vivian Hooton vivianhooton@gmail.com

Categories Business Plan for Private Lenders, Credibility Building, Deal Structuring for Private Lenders, Finding Private Lenders, Private Lending Reports, Real Estate-Private Lender Valuation

Funding for Short Sales, REO’s and other Flips

by Richard Odessey Ph. D.

May 25th, 2009

With so many homes going into foreclosure, or already taken back by a lender, Real Estate Investors have the opportunity of a lifetime to make huge profits by negotiating

1) short sales with lenders who foreclosing on homes
2) big discounts on bank-owned inventory (REO’s)

and then reselling them to a new buyer at a higher price thus making a profit while still offering the new buyer a great discount.

In the past, these types of flips could be accomplished in a simultaneous closing such that the investor closes with the buyer, and simultaneously uses those funds to pay off the lender at the negotiated price and pocketing the difference as his profit.

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Net net this is a nothing down transaction because the investor is using the buyer’s funds to pay the lender.

Unfortunately, this is no longer legal and will not be permitted by the lender, and closing attorneys will not do it. Read More→

Categories Access to Private Capital, Business Plan for Private Lenders, Deal Structuring for Private Lenders, R.E. Software & Tools, Real Estate-Private Lender Valuation

Inside the Private Investor’s Mind

by Richard Odessey Ph. D.

April 25th, 2009

	An interview with a Financial Advisor to High Net Worth Private Investors *This is a ‘Must-Listen’ to anyone interested in raising money for their Business*

An interview with a Financial Advisor to High Net Worth Private Investors

This is a ‘Must-Listen’ to anyone interested in raising money for their Business

In this “kiss & tell” interview you will

Find out:

·What thing will automatically give you away as an amateur.

·What ROI private investors are looking for

·Whether to offer promissory notes or equity participation

·How long private lenders will wait to get their money back

·How to explain the risks in an investment

·And much, much more…

This is true inside information, exclusive to Members of the Investor Wealth Network.

How to get in touch with Randy Brunson:

www.CenturionAG.com (subscribe to the newsletter)

Email: rbrunson@centurionag.com

Phone: (770) 817-0525 begin_of_the_skype_highlighting (770) 817-0525 end_of_the_skype_highlighting

Categories Access to Private Capital, Angels & VC's, Credibility Building, Finding Private Lenders, Presentations, Real Estate-Private Lender Valuation

Deal Evaluation Tool & Software

by Richard Odessey Ph. D.

March 27th, 2009

Explosive Strategy to be Revealed to 200 investors…

private money lender deal evaluation tool

Congratulations,
there is another special opportunity waiting for you.

Is your deal “investment ready” for private lenders? When you want to raise $100,000’s or even millions of dollars for your real estate ventures, you’re going to want to be talking to people with money—the high net worth individuals and angel investors.

As a member of the InvestorWealthNetwork.com’s Private Lending Insider, you’ll be learning how to do this.

Now, these investors are going to scrutinize your deal to make sure it can generate the kind of return they’re expecting and not expose them to too much risk.

So, wouldn’t it be reassuring if you had an expert at your side that could assist you in structuring your deal to meet these criteria before you approached people for money?

Well, now you can with a special software tool designed by Richard himself that he uses in successfully funding his deals.

It’s not just a piece of software. It’s a unique expert system. Just enter your numbers and the expert system will:

Project out your profit and cashflows up to 10 years in the future

Quantify the investor’s risk by telling you what will happen if you lose a tenant or your rehab goes over-budget

Allow you to test multiple exit strategies to find the one that will maximize the return with minimum risk for yourself and your investors.

Give you multiple options for offering your investors those “can’t refuse” high returns through promissory notes, and/or equity investments while bringing you cashflow through management fees and equity sharing.

software-box-250

These are sophisticated techniques that the Donald Trump’s of the world have armies of accountants, and financial advisors to work out for them.

Now, you will have the power to work this out in minutes without spending another dime on high-priced financial whizzes.

This is an expert system created by an investor for Investors. Richard uses it personally in all his deals, and it has made him excellent profits every time, and it will do the same for you. It’s as simple as punching numbers into the blanks the program asks you for, then reading the evaluation sheet.

The Deal Evaluation Tool is a $297.00 value. It’s worth every penny. You’ll probably earn much more that the first time you use it. We sell it on InvestorWealth.com every day for that price.

For this Special OFFER you can get here right now, Get This incredible wealth-creating expert system for ONLY $147.

You will NEVER SEE this offer on our public non-members site. So, click the button below to order it NOW.

[i4w_onlyfor tagid=’1284,1192,1188,1180,1172′]
Use the MembersOnly Discount Code IWNDET on the shopping cart to get an additional $70 off. Make sure you click the APPLY BUTTON before you check out.

[ELSE_onlyfor]
Access To All Special Member Discount Codes are for Members Only after logging in. If you are not a member yet, you can take advantage of the $147 special price for visitors to InvestorWealthNetwork.com.

No Account Yet?
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Categories Entrepreneur News, Private Money Tools & Plans, R.E. Software & Tools, Real Estate-Private Lender Valuation

How to Tell if Your Deal is Worth It?

by Richard Odessey Ph. D.

March 2nd, 2009

Test your deal evaluating skills?

Every successful investor balances the risks with the benefits. Let’s test your insights with this Example:

You find a single family house and after talking to the seller you find out:

Fair market value $180,000

Seller Owes $135,000

Seller in arrears $ 1,800

Estimated Repairs $ 5,000

Seller’s Monthly pmts $ 1,003 per mo (7.75% interest rate)

In your market, you estimate it will take about 3 months to get a tenant-buyer that will pay the market rate of $1350 per month.

Is this a good deal?

Let’s do the Math. Let’s review the numbers below and then break it down.

Well, there’s $38,000 in equity even after fix-up and payoff off the arrearage. Let’s calculate the cashflow: (you can get out your calculator or use my Deal Evaluation Tool).

	Monthly
Rent Income	1,350.00
Other Income
Vacancy Adjustment
Gross Operating Income	1,350.00
Expenses	211.00
Loan Payments	1,003.00

Net Operating Income (NOI)	1,139.00
Net Cashflow	136.00

The cashflow appears to be decent, and the equity is nice. Just lease option it for a year, and then get the tenant to refinance.

What’s the Catch?

I know a lot of investors that would take this deal. (At one time, we would have). However, let’s remember that 3 month holding period. During that period you’re paying the mortgage, taxes and insurance, plus some utility costs. All told that’s going to run about $4,060.

Oh, and the repairs…no repair job no matter how small costs what you think it does—it’s always more. That $5000 could easily grow to $7000. That means you’re going to have to come up with $11,000 before you receive a penny from a tenant.

Risk #1 = $11,000 in carrying/purchase costs. Where are you going to get the money?

The Cash Crunch

Remember—never use your own money. If you can’t borrow it or negotiate it, I strongly recommend you walk away.

But suppose you had a friend that would lend you the money (at 12% interest). Ok, but that’s $110/month added to your costs. Now, your cashflow is down to $26 per month. That’s pretty slim, but positive. As long as nothing goes wrong.

However, this raises a big red flag in the Deal Evaluation Tool. Why? Because what if your tenant stops paying. Well, even if you had a hungry buyer lined up, and lived in a state that made evictions quick, like Georgia, you’d be sucking air for at least 2 months.

Risk #2 – But heck, even if you lost only 1 month’s income, you’d be negative for the entire year.

Bottom-line – Bad deal – walk away. There are better deals out there. Don’t tie up your resources and stress yourself out for a hoped for pot of gold at the end of the rainbow—you may not get there.

The Deal Evaluation Tool to the Rescue

These are the kind of situations, I coach my students to analyze before they act. A bit of due diligence, and the use of my Expert System–the Deal Evaluation Tool, could have allowed any investor to walk away from financially dangerous situations without costing him a dime. It also calculates your costs, income and tells you if the risk is too great. It will even let you test out different strategies or what if a scenario to find which one works best. We use it for all our deals. I insist my students use it, and I highly recommend it to you.

This is a system with my built-in expertise that has helped us tremendously in sorting through the points I’ve discussed above, for just about any kind of deal from single family to multi-family, rehabs to rentals, and short sales to pre-construction. Put in a few simple numbers that you can get from the seller and a bit of due diligence, hit the enter key, and voila: You get a complete report of your cashflow, profit and risks for up to 10 years into the future.

It will also tell you whether the deal is a go or no-go. If it’s a no-go, you’ll also get specific suggestions on how to fix it, based on the risks involved. And importantly, you’ll be able to work out a return for your investors that will make them salivate and bring you a hefty return.
I developed this tool for our own real estate business and it has consistently steered us away from bad deals and identified the slam dunk ones. We use it on every deal we do.

For InvestorWealth subscribers, we sell this Deal Evaluation system for $297, and that’s a great deal. Now, because you are an Investor Wealth-Network Member, I am going to give you this incredible Expert system for only $147 – that’s a 50% discount—You Save $150. Just click this link

If you don’t use this tool before you do a deal, you are putting yourself, in my opinion, at an unacceptable risk. If you want to do only successful deals and completely eliminate losers, getting the Deal Evaluation tool is really a no-brainer.

P.S. There are a couple of other ways to work this deal that could turn out better. Can you think of any? Just put your comments in the forum.

Categories Deal Structuring for Private Lenders, Entrepreneur News, Private Money Tools & Plans, R.E. Software & Tools, Real Estate-Private Lender Valuation

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Private Lending Insider

Archive for Real Estate-Private Lender Valuation – Page 2

An intensive personal 8-week training to bring you to getting the check

Here’s How to Enroll in the Private Money Mastery Program

I. Get Ready

II. Attract

III. Deliver

Areas of Interest

An intensive personal 8-week training
to bring you to getting the check