Private Investors: Show me the money and I'll show you a sound investment.

I have to admit, when it comes to real estate investing I am consistently putting the cart before the horse. I will chase leads, talk to sellers, and look at properties all day long, but when it comes to talking to people about private lending and finding the money to do the deals, I never seem to get around to it at the right times.

Talking to people about money is just plain boring to me, while looking at houses is super exciting. I can't tell you how many deals I've lost simply because I didn't have anyone showing me the money BEFORE I found the great deal. In all the excitement I'd leave the funding until last, thinking the awesomeness of the deal would make funding a breeze, only to have time run out and/or someone else swoop in and snatch it up while I was out looking for a lender. This is one reason why I originally started out with a business partner. He was a "numbers" person that loved talking to others about money, and it was deemed one of his responsibilities to get out there and find the money while I found the deals. Sounded perfect, but unfortunately it was a part of the bargain that he didn't hold up and we've since parted ways. Trust me, I'm ready to learn my lesson once and for all that the money needs to come first and that I have to be the one to find it.

I read an article in my local paper today about private investors who thought they were funding deals for a real estate company and getting great returns, just as it should be. ( http://bit.ly/YPkML ) Turns out the real estate company was not rehabbing the houses or even holding the notes for under 80% of the house's appraised value as they were told, so the private investors were left holding notes on dilapidated old boarded up houses that were so over leveraged, often by multiple notes, that there was no hope of ever recovering the investment. And these so-called real estate investors owe their lenders over $25 million.

I already dislike the "show me the money" part of this business, but it is one I whole-heartedly believe in because I know how safe and secure investing in real estate the RIGHT way can be. I am sickened by these poor investors who have now lost their life savings, retirement money, or family nest egg due to one incredibly unscrupulous individual. and he probably loved talking about money and was very good at it from the amount he was able to receive. On the other hand, I can not believe these investors essentially handed over their money and just assumed everything was as they were told it was. Would these same people give a large lump of money to their stock broker and just trust that he knew what he was doing and was making them money, never reading a market report or checking in with the broker, even with the stock market falling as we speak? Perhaps they would, but perhaps they are also part of the problem the country is currently in.

So now, as I resolve to go and secure more funding before I miss out on another great deal, I must hit the streets with this incredibly derogatory article overshadowing my good intentions. Will potential lenders have read this article and now completely shy away from securing their investments in real estate? Will they think we are all scammers just taking their money to buy ourselves big boats and fancy cars while the alleged investment crumbles on its lot? I pray that is not the case and that logic and reason allow people to see that this is an extreme case of abusing the system.

So how can I assure you, Mr. or Ms. potential private lender, that I am not such a despicable person?

Well, for starters I am a member of all the larger real estate groups and associations in our city, and in fact I'm president of one of them ( http://www.richmondring.com ). I have a lot riding on my reputation in real estate and would not do anything that would jeapordize my position or lower my ethical standards. Ask anyone in our groups, I'm a stand-up kind of gal. Next, I want you to be comfortable with the property in question. I'll meet you there any time you like to see what your money is buying and if invested, how the progress is going. You should never invest in a stock and then not bother to check up on it and the market, why in the world would an investment in a house be any different? I will show you the inspection report (if obtained), contractor's written estimates, get an after repair appraisal, and close with an attorney or title company that will record the mortgage note with the deed of trust for you. There are many other ways to help you keep your investment safe and secure AND profitable, these are just a few to start. I want you protected and happy so that we can have a long and profitable relationship!

Oddly, I'm now even more determined to show people the great benefits of investing their money in real estate. perhaps this article will give me the boost I needed to get out there and talk more about it with more people. Perhaps I'll go so far as to call it a personal quest to prove to Richmond that real estate investments are an excellent choice to earn very profitable returns on your money. I don't expect to raise $25 million to counteract the damage done by this one disgusting investor, but every little bit counts toward righting some of the wrong that's been done to many private investors in this town.