Over the last several months, Rosie has been working hard with real estate investor Pace Morby to learn about private money lending. He has an online course on a type of lending called the Gator Method that is only available at certain times. Pace has a great community of entrepreneurs who are working together to help other entrepreneurs become successful in real estate through various forms of creative finance.
What is the Gator Method?
The Gator Method was designed to help new investors use other people’s money (OPM). There are lenders whom investors can borrow from, but with the Gator Method investors are not required to have their credit checked (although some lenders do), the interest can be negotiated, and they can borrow small amounts of money quickly.
Let me give you an example of how this can help you. There are a lot of people who are learning about wholesaling. It seems it is the next biggest thing right now in the real estate world. However, if you are just getting started and you don’t have money for escrow or due diligence what are you going to do? You could get a personal loan, but it takes time for the funds to transfer. If you need funds immediately the Gator Method is a great tool for you.
With every hard credit check to get funding, it impacts your credit score. This is why most investors find private money lenders to help them with their deals. According the Credit Karma, hard inquiries stay on your credit report for up to two years. If you are someone who wants to work on multiple deals every year and you are using traditional lenders, you will eventually have your credit affected and the amount banks will give you will decrease.
Some Gators have a set amount of interest depending on the type of deal. However, when you begin working with private money lenders (PML) and build the relationship by paying off the loan as agreed upon can be room for negotiating interest.
If you have a wholesale deal deadline and need to put down money for escrow or due diligence look no further. Funds can be given to you fast once the agreed terms are set. Just like a bank, each Gator has due diligence they must complete on their end to ensure they will get paid back. You will need to fill out an application and once approved you will sign a contract with what the expectations are on each end.
If you are new to the investor world and need funding, reach out to us. We provide funding with no minimum amount. Let us know how we can help.
