Attributes of A Good Private Money Consultant

September 10, 2024

If you are an experienced real estate investor, chances are you’ve seen the good, the bad and the ugly when investing. You’ve had your ups and your downs in each project that you worked on. As an experienced real estate investor (whether residential or commercial), you know how to navigate the critical aspects of selecting the real estate asset, running the numbers and negotiating the best terms from the seller. This is especially important when the project requires rehab or is ground-up construction. Working through the logistics of rehab properties and construction can be lengthy and complicated. Most likely, the Private Money Consultant, loan officer or banker you delt with, was key to moving the project along. For our purposes, I will be discussing a good Private Money Consultant. Below I have listed some key elements of a smooth transaction, whether investing in residential or commercial real estate.

Expertise: It is imperative to the success of your project to work with a Private Money Consultant who understands all the aspects of several types of real estate projects and properties. Some of the most commonly invested properties include multifamily, single family, warehouse, storage facilities, condos, land and assisted living facilities. Other, less commonly invested properties are churches, restaurants, gas stations, auto repair shops, and funeral homes. Knowledge of the special intricacies associated with the funding requirements for each type of property is an attribute you should look for in a Private Money Consultant.

Follow Through: Another key to your success is the follow through. A good Private Money Consultant will make sure all the moving parts to getting you funded are addressed and adhered to. Title should be opened immediately so that a title search can be performed. Title will also bring out of the woodwork any liens (government or personal) as well as tax liens. Buying a property with a clear title is extremely important. Your Private Money Consultant should be on top of this. The second task is ordering the Appraisal right away. This is one of the more time-consuming elements to getting funded. The lender should order this as soon as a complete file is obtained. More often than not, what drags the process on is not having a complete file to submit. This is on you, the real estate investor! The Private Money Consultant should follow through and make sure you complete all documents.

Communication: As an experienced real estate investor, you know how frustrating it can be when it comes to the status of your loan file. Some questions that come up are: When will I hear from the Appraiser? What will be the terms of my loan? How soon can we close? I provided a PFS, why do you need my bank statements? The seller is not cooperating with my request for a rent roll, what should I do? These are questions that should be delt with ASAP. The Private Money Consultant needs to give clear and concise answers when possible. Sometimes the answer needs to be an estimation when it comes to a closing timeframe or when the Appraisal will be ready. The reason being, some things are out of the control of the Private Money Consultant. Setting expectations for you, the borrower, is key to a smooth funding process. In this way, you will not feel like you’re in the dark or are at the mercy of the lender, but are working with a professional who cares about your interests first and foremost,

If you have any questions or comments, I can be reached at: cjones4loans@gmail.com