"I want to invest in the foreclosure market but I just do not have the money or know where to find it" Have you heard this statement or said it yourself? Well all you as investor have to do is just ask for it. It's amazing how many ordinary people have money and are open to putting it up to invest in the foreclosed home market. The only way to find these people is to constantly be asking. If you are looking for private money, you just need to put it out there with everyone you meet. You do not need to ask them directly …. you can just put it out that you are looking for people to earn "x"% (usually 10%) and ask everyone you meet if they know anyone that they could refer to you . You will be amazed but many times the people you ask will be the ones who end up giving you the money. Set a goal for the amount of cash you would like to raise and then go out and do it! The more private money that you get lined up on the sidelines will allow you to make offers with out worrying about the cash flow needed to cover current of future expenses on current or future projects. The cash will allow you to take advantage of the really good foreclosure opportunities that arise.
Now every private money lender is different when it comes to paying back the money plus interest. I stress with my private money lenders to make the process as simple as can be for both their benefit and mine. We simply pay our principal plus simple interest at the time of closing the sale and walk away with what is left as our profit. 99 times out of 100 the private money lender is on board with this payout system.
If money is your only issue in getting started investing in the foreclosure real estate market or growing your real estate investing business to the next level, then you really do not have much to overcome. Most of the investors that I come in contact with state that "this is their largest contract" when it comes to growing their real estate business. If that describes you …. just start asking. You will be surprised at what you find if you commit to the process and look! The 2 keys to being successful are to always be asking AND offer a high rate of return along with a mortgage recorded against the deed.