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A Successful Hard Money Loan Depends on These 4 Things

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Image by Gerd Altmann from Pixabay

By Victoria Kennedy

Making money from real estate investing and becoming financially independent are goals for many people. There are always profitable opportunities – like fixing and flipping a property – that could generate considerable profit for an investor within a relatively short period of time, if executed quickly and effectively. When there’s a money-making real estate opportunity in front of you and you need some additional funds to make it happen, a hard money lender is the best place to turn.

These lenders are where seasoned real estate investors turn when they want to invest in multiple properties at once. They know that if they have 20% of the money required, the lender can provide the additional 80%. When those properties are successfully turned around, the investor reaps significant financial benefit. While many lenders promise the advantages of a hard money loan – a flexible process with quick approvals and closings as well as customized loan terms – not all lenders have the borrower’s best interests in mind or the ability to fulfill their promises. Going with the wrong lender could lead to an investor being unable to repay a loan and a seizure of collateral. That’s the last thing you want, and that’s the last thing a legitimate lender should want. Before securing a hard money loan for a real estate investment, you should follow these tips to find a lender whose goals are aligned with yours and will deliver what they say they will.

1. Know where the lender’s money comes from

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Image by Manish Dhawan from Pixabay

A direct hard money lender will be invested in your success. The lender uses their own funds and balance sheet to make loans. If a borrower defaults on a loan, it adversely affects the direct lender. Because their money is on the line, a direct lender will make sure to write loans on projects that make sense and that they believe the borrower is capable of executing. Other types of lenders, the ones that sell all of their loans to larger hedge funds or institutions, don’t keep any of the risk. Lenders who sell a loan also have less flexibility since they must underwrite to the end-buyers’ guidelines to ensure the loan is sellable. The underwriting process usually takes longer and depends on a third-party willing to buy the loan to close the deal. Most investors prefer using a direct balance-sheet lender because they feel they’re working with a real partner, one who can get their loan closed quickly.

2. Research the lender’s track record

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Image by StockSnap from Pixabay

Anyone can write unsubstantiated glowing reviews about a business. It’s not uncommon for reviews on a company’s website to be forged, written by someone who has not used their service but still says positive things about the business. Look for legitimate direct testimonials on a company’s website that are verified. Verification is done by a third party – by companies such as YotPo or TurnTo – that ensure authenticity in the written review. You’ll get a good idea of a lender’s strengths and weaknesses if you read through the verified reviews – every one of them. After investigating online, ask other investors and service providers in the area if they’ve had experience with the lender.

3. Look for flexibility

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Image by Gerd Altmann from Pixabay

Experienced real estate investors know that flexibility in hard money loans is most common with a direct lender who isn’t restricted by someone else’s guidelines. The direct lender can look at the unique conditions of each project and write loans accordingly. Flexibility particularly comes from a lender who is structured so that investors are dealing directly with decision makers. Find out who in the organization will be underwriting your loan. Will you be dealing with a junior underwriting analyst who isn’t capable of making changes without going to management for permission? Or, will you be dealing with an underwriter who is a partner in the firm who has the power to make changes and exceptions?

4. Deal with someone familiar with your market

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Real estate investing is a “block by block” business. Depending on the city, the value of similar houses can vary as much as 20% in just a few blocks. You need to find a lender that’s an expert in your region’s market. Experts in the market will know if an investment has the potential to be successful. Take the time to ask the lender about similar projects in the area they’ve funded. Without revealing another investor’s private details, they should be able to tell you where they’ve seen projects like yours thrive. They may also be able to offer you tips on what not to do, based on their experiences with other clients. Doing the proper research can ensure you find a legitimate hard money lender and lead you to real estate investing success. Our direct hard money business is proud to do all we can to ensure the success of our borrowers. Asset Based Lending, LLC (ABL) is a private hard money lender that has been featured in the Scotsman Guide and Inc. magazine. Their mission is to help real estate investors to quickly and efficiently finance their business activities. They have funded over 3,000 loans for $650 million worth of volume for residential and mixed-use investment properties. Click here to find out more: https://www.abl1.net/
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Victoria Kennedy [email protected] atmanrealestate.com

Nominated as a 2020 Brand Ambassador for Inman, Victoria Kennedy is a well-respected authority in Real Estate marketing and branding. She is the CEO of Atman Real Estate, a marketing & branding agency that is committed to helping top producing Real Estate professionals become the #1 Agents in their area. She is a highly in demand speaker on all things digital marketing, and has helped many clients boost their visibility and revenue. Because of her expertise in real estate, she has been a trusted speaker and contributor to such organizations as the National Association of Real Estate Brokers, Inman News, and Yahoo Finance. In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realties, Title Companies, Investors, and top producing agents. She has been featured in over 175 publications and podcasts both nationally and internationally. In addition to her marketing expertise, Victoria is a #1 selling classical-crossover singer and has sung with the likes of Andrea Bocelli, as well as toured all over Europe with her music. She is excited to share with you the power of her Closing Maximization Method and how it can exponentially grow your business. Find out more here: atmanrealestate.com

Leading in Leads

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Image by Gerd Altmann from Pixabay

By Bruce Kellogg

Got Leads?

Back in 1981, real estate agents in Silicon Valley agents gathered buyer and seller leads by open houses, door-knocking, “floor time” in the office as a receptionist, and some direct mail. None of this was sophisticated.
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Image by Paul Brennan from Pixabay

Things got sophisticated around 2005, before the Great Recession, when computers started being used for “data mining” or “data scraping”. Sellers of leads were able to access local governmental data bases for such leads as: 1) pre-foreclosures, 2) evictions, 3) building code violations, 4) probate estates, 5) tax liens, and more They then sold the leads to agents/brokers and investors. Or else they licensed the software on a monthly subscription basis. This still goes on, but it’s less effective now because the software is sometimes “dueling” with other companies’ software. This is a mature market now. With the arrival of social media, another source of leads has emerged. This article presents Atman Real Estate, “The Premier Real Estate Marketing Lead Generation Service”, and Victoria Kennedy, its Chief-Executive Officer (CEO). They are leading in leads.

Victoria Kennedy

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Victoria Kennedy
Victoria Kennedy is the CEO of Atman Real Estate, a lead-generation agency that is committed to providing more leads and closings for real estate professionals. She is a highly in-demand speaker on all things digital marketing, and has helped many clients boost their visibility and revenue. Because of her expertise in real estate, she has been a trusted speaker and contributor to such organizations as the National Association of Real Estate Brokers and Inman Connect.
In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realtors®, title companies, investors, and top-producing agents.
She has a degree summa cum laude from the University of Southern California (USC) and is located in Las Vegas, Nevada.

Atman Real Estate

With a staff of five, Atman finds and cultivates buyer and seller leads for brokers and agents using the client’s social media, primarily Facebook and Instagram. They pre-qualify each lead to determine their needs and motivation. They then actually set the initial appointment for their client and the already-qualified lead. This saves their client a tremendous amount of time and rejection. Plus, some Realtors® do not prospect as much as they should to realize their aspirations. Atman advertises “an additional 2-4 closings per month” for its clients.
After the Atman client meets with a new lead, there might not be an immediate agency buy or sell transaction. Then Atman uses its Contact Relationship Manager (CRM) to text and email the lead up to 12 months on behalf of their client. This reminds the lead of the client’s continuing interest and support. This helps keep the lead from wandering off! (How many agents follow up as thoroughly as this? Just saying!)
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Image by Gerd Altmann from Pixabay

The messages that Atman sends to a client’s leads are customized for the client. These are not generalized and copies as some lead services do. Atman nurtures the leads for its clients. Additionally, Atman’s leads are exclusive. They accept one client per city based on a 25 mile radius, and they NEVER sell leads multiple times.

Atman’s “Unique Selling Proposition” (USP)

To be successful, an enterprise needs to adopt a Unique Selling Proposition that distinguishes and distances it from its competition. There is a lot of competition in the “lead purveyor industry!” Atman leads the pack by cultivating leads for its clients to the actual appointment, then following up for 12 months, if necessary. Find out more about Atman and their ROI guarantee here: atmanrealestate.com.
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Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 38 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches. Mr. Kellogg is a contributor and copy editor for two national real estate wealth-building magazines: Realty411, and REI Wealth Monthly. He is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed in Who’s Who in America – 2019. He is available for consulting with syndication, turnkey, joint-venture, and other property purchasers and note investors nationally, and other consulting assignments. Reach him at [email protected], or (408) 489-0131.

How This Powerhouse Woman Created an 8-figure Real Estate Business and How You Can, Too

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By Victoria Kennedy

I am no stranger to the determination it takes to grow a real estate business. As a teacher turned Realtor®, I knew from the very beginning that I had to forge my own path.

When I first obtained my license in 2001, I was brand new to the industry with no one to show me the ropes. It was a time of unpredictable growth in northern California’s market, but with a little hard work and a lot of passion, I learned the ins and outs of the industry. I have faced numerous challenges throughout my years as an agent, including recessions that affected not just me, but the entire nation. As many agents were exasperated with endless foreclosures and short sales, I decided to do something about it and obtained my Certified Distressed Property Expert in order to better serve my client’s needs as I continued to grow my business to the empire it is today, selling an average of 100 plus homes a year with a career total of more than 2,200.
It all goes to show that in this industry, you have to be willing to adapt, have an exceptional work ethic, a knack for marketing and a devotion to your clients. The educator still in me from the years I spent as a third-grade teacher drives my desire to teach others, and I have decided to combine my two passions to educate other realtors how they, too, can grow their real estate business to 8-figures.

Keep learning.

Even if you have been in the business for years, there is always something learn from other real estate agents, articles or even seminars. None of us should ever be too proud to continue broadening our minds as a way to better help the people who are entrusting us with one of the biggest decisions of their life: selling or buying their home.
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Image by Gerd Altmann from Pixabay

I realize my background in education makes me a bit more passionate about learning than the typical Realtor®, but it is a tool that has served me well. I have been able to hone my marketing skills, learn more about the tools available to me, discovered the ins and outs of the real estate market and how to best connect with others.

Understand marketing.

Marketing is the key to success for any industry, but it is such an important component to real estate. It is the way we generate solid leads that turn to business. Of course, social media and online marketing has become the driving force behind much of today’s marketing. Did you know 99 percent of millennials begin their home search online? Think of the multitude of customers you are missing by not taking advantage of social media platforms.
Any Realtor® needs to have a concrete marketing plan in place. A Google My Business listing is a must. This is the sidebar that appears on the page when you Google a business or service. How are the thousands searching for agents in your area going to know you exist if they can’t see you on the biggest search engine available?
From Facebook to Instagram to LinkedIn, there are a number of platforms out there ready to help you expand your business. You just have to do your research to determine which fits your company the best, or if it is a combination of several. Facebook continues to be the most used by agents as its demographics tend to represent the target audience for many agents across the country.
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Image by Pixelkult from Pixabay

Instagram is on the rise as one of the best ways to reach potential clients as stunning home photos can capture a wide audience. LinkedIn might not be the best use of your time for finding potential home buyers or sellers, but it is a great way to connect with other agents.
Make sure to use local hashtags with your industry to help reach people in your area looking to purchase their next home.
Another part of marketing is to never underestimate the little things, such as staging and a professional photographer – particularly on platforms like Instagram where a visual representation is everything. Videographers and done photographers also make for great additions to your real estate team. Don’t forget to combine your social media marketing with a mixture of local resources, such as your community newspaper or area billboard companies.

Engage the audience.

While picturesque photos and informational posts are great tools, I have discovered videos are crucial to engaging the audience. Video posts are 12 times more likely to be shared than those without. When you share a video, people are connecting with you. They are getting to know your voice, your face, and what you stand for. You can establish yourself as a professional as you interact with the audience on a wide variety of real estate topics, from tips on purchasing a home to the latest trends in countertops to the hottest neighborhoods in the area.
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Image by StockSnap from Pixabay

The more videos you publish, the bigger your audience will become. When one of those viewers is ready to buy their home, they are going to want the professional they have come to know and trust to walk them through the process.

Build relationships.

Many agents are so focused on new clients, they underestimate the power of keeping existing ones. It costs a Realtor® a whopping seven times more to land a new client than it does to keep one who previously bought or sold a home with them. Do you know how you keep those customers and increase your profits from a possible 25 to 100 percent? By building relationships.
It does not matter if your customer is buying a $200,000 home or a $1 million dollar home. That couple searching for their starter home might have built an incredible life that affords them a luxury home in a few years. You just never know. By treating everyone with kindness and respect, you will be treated the same in return. Another way to develop relationships is through making connections in your community. This is another way social media comes in handy. Search for businesses, nonprofits and groups in the area. Make sure to follow them and engage in their posts by liking and commenting.
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Image by Werner Moser from Pixabay

Agents often overlook the importance of helping out the community. Doing so is a great way to portray the integrity you want to run your business with while creating trust. For example, education remains dear to my heart, so I enjoy being involved with programs and scholarships at the local schools. Find what your passion is and help out your community. Continuing to always expand upon your skills while creating a network in the community around you will always be a step in the right direction. However, if you find yourself ready to grow your digital footprint and become an authority in your industry, we host monthly Accelerator programs for FREE to help you take your business to new heights.
Krista Mashore has an exclusive coaching program that teaches professionals how to become the go-to authority in their communities. She has spoken on the Inman stage and has been featured in Yahoo Finance, Wall Street Journal, Authority Magazine among other publications and has been a guest at numerous podcasts including Conscious Millionaire. Click here (https://kristamashore.com/2DaysLive) to join the 2-day Live Coaching Event with Krista and transform your Real Estate Business. Learn more from Krista at her next event, HOW TO CLOSE 100+ HOMES A YEAR (kristamashore.com), March 23-24.