Flip Tip Summary
Lots of people you meet in your everyday life are sitting on retirement accounts earning little to nothing. Some of these folks would love the opportunity to lend to you in your real estate business. Glen Mather tells us more in this FlipNerd Flip Tip segment. Don’t miss it!
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright from FlipNerd.com and we have a quick VIP tip to share with you from Glenn Mather who’s going to share a tip on how to meet lenders that want to lend you their IRA money and how to find lending partners.
Glenn: You know, what’s interesting is I meet a lot of people all the time, and one of their biggest frustrations are they’d love to put their IRA money to work in some other way but they have no idea how to do it. So they get their financial adviser to tell them what to do, but they’re not actually involved. When they hear about all the things that can be done in an IRA, they say, “Listen, I don’t necessarily want to do that myself, but how can I get involved?”
Well, if you want to put someone else’s IRA to work, this is perfect. Tell them what you’re doing. Are you buying houses and holding them long-term? Are you flipping them? Because each time you do that, it’s an opportunity for a lender to get involved, and you get to create the terms, because if you’re using their IRA money, it’s between the two of you to decide what those terms are. Maybe you can get extra-low rates and you can make the deal so that you may only pay them 5% but they get a piece of the upside if you sell it. So instead of paying hard money lending 15 or 16%, you may be able to get that for a lot less. Keep in mind that the stock market today isn’t too attractive because the next dollar in is going so high, they might feel a lot more protected in investing alongside you than they do in Wall Street.
So don’t ever forget to start talking this up, because it basically can become the funds that will fund your next deal, and I will assure you when you return the money back to them with a profit, they’re in it for the long term. They’re in it with the next deal, and the next deal, and the next deal, and you won’t have to chase money anymore. So make sure you use this tool because it can be very effective.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.