Never Offer Collateral First, Only if the Lender Insists - Lou Brown's 101 Street Smart Cash Flow Accelerator # 38
Only offer collateral if the lender insists. Slow that car down and don't get too excited. In this series I've been sharing with you about borrowing money, borrowing money without going to banks and without qualifying for loans. That's my favorite way to borrow money. I've got a whole system on this called Borrowing Volume Six. It's in my system of training you how to become an amazing real estate investor and build a terrific real estate business. You can find that by going to streetsmartinvestor.com click on tools and click on Volume Six Borrowing. What I'm sharing with you right now is the fact that in some cases, (in many cases) the lender really doesn't care about putting this against a particular property. I'm being very careful to share this with you because I want you to be extremely powerfully responsible around when you borrow someone else's money that you are in a position to pay that money back. The thing that really makes it valuable is if you give a mortgage against the property and that property sells, then you have to give the money back because it's secured by that individual property. What that means is Mrs. Jones now got her money back and she's not earning anything on that money while it's sitting there idle. Alternatively though, if you borrow that money on a promissory note, then that money is earning interest the whole time that it's out. So you put the promissory note with a period of time. It could be 1,2,3 or 5 years. During that period of time you've got the freedom with that money. Keep that money working and you can make a lot more money on it.
To watch the next part of the video go to: How to get a reissue fee on the property's title insurance https://youtu.be/6XELry55eFc
Investors have long regarded Lou’s training, systems and forms as the best in the industry. He has been quoted as an expert by many publications including The Wall Street Journal and Smart Money Magazine.
Lou draws from his wide and varied background as a real estate investor. Having bought property since 1977, he has invested in single-family homes, apartments, hotels and developed subdivisions, as well as building and renovating homes and apartments. These experiences have given him a proving ground for the most cutting-edge concepts in the real estate investment industry today.
