This episode is Part 2 of a two-part interview with Susan Lassiter-Lyons. If you haven’t checked out Part 1, you can find it at WholesalingInc.com/podcast.
What happens when you find an awesome property to add to your portfolio and you just don’t have the cash to buy it? If you don’t know the answer to the question, this episode will be a game changer.
Susan Lassiter-Lyons is an expert in acquiring private money and the author of one of Tom’s favorite books, Getting the Money: The Simple System for Getting Private Money for Your Real Estate Deals.
IN THIS EPISODE YOU’LL LEARN:
- Why authenticity is attractive to investors
- Myths you shouldn’t believe about lenders and investment partners
- How Susan leveraged private capital for real estate investment
How Susan Used Private Capital
Susan has raised over $26M in private capital through a combination of one-to-one deals and group investments.
She started out by purchasing a number of multi-family residential properties with an average all-in acquisition price (purchase price + repair costs + closing costs) of $175,000.
- She secured capital for these purchases by finding individual investment partners who could offer the full price of the property. This type of one-to-one investing is called trustee investing, and there are fewer guidelines to follow in these deals.
- She rehabbed and sold some properties as turnkey rentals to other investors using seller financing by “wrapping” the underlying private money mortgage (and then kept the best properties for her own portfolio). The result is Susan makes money off of these deals and then positions herself as the bank, as opposed to the landlord.
After raising a lot of capital to fund these one-to-one deals through her mortgage company, she started brokering out money for other people’s deals
- She was paying 7% on the capital she raised, then utilized that money to become a hard money lender.
- She lent out at 15% with 4 points to investor borrowers with a six-month term through her mortgage company and then kept half of the interest rate in the spread.
- Put very simply: she borrowed money from Joe and then lent it to Mary at a higher rate, for more money.
Are you ready to start Getting the Money? Pick up the book and get going.
- Get started with Getting the Money: The Simple System for Getting Private Money for Your Real Estate Deals
- Dive deeper and sign up for Susan’s course at GettingTheMoney.com
- Learn more at Investor Insights