Bill Allen is a real estate investor and mentor. He actively flips and wholesales houses in three markets, averaging about 200 deals per year.
Thanks to the people on his team and the systems he put in place, he only works a few hours a week.
The rest of his time is spent with his wife and three kids, and of course serving his 7 Figure Flipping community.
He can show you how to use cheap private money to scale your real estate investing operation.
Read on for my Bill Allen review.
“When you realize that other people’s money can advance and grow your business to levels you never even thought were possible, that’s when you understand that private money is the holy grail of real estate investing,” Bill says.
“Bank loans are slow-moving and hard to get approved for. Hard money loans are expensive and have awful terms, and you still need money down, or what’s called gap funding,” Bill explains.
“This is why private money is so incredible. Other people’s money.”
“You can fund over 100% of the purchase price of the property, all the rehab costs up front. You can get it right at the beginning.”
“I’ve done deals where I’ve brought in a lender,” Bill adds.
“I’ve given them first position mortgage on the property, and they’ve given me the whole purchase price, all the closing costs, and all the rehab fee up front.”
“And so I have that money in my bank account, I renovate the house, and then I don’t have to make monthly payments; I pay them off as a balloon at the end of the loan.”
“So private money just means other people’s money.”
Okay, but who even are these people? They could be friends, family, coworkers, people that are already lending on deals – anyone, really.
“The other thing is they can use their retirement accounts,” Bill points out.
“So a lot of people don’t know you can use your IRA and 401(k) to loan on real estate. You can actually be a money lender using your IRA and 401(k).”
“So when I started realizing that was possible? It changed everything for me.”
“Not only did I self-direct my IRA and 401(k) and start loaning it out to people, but now I could go out to my family, my friends, my warm network, the people that I know, show them how to move their money over from the stock market to a self-directed IRA and 401(k), and how to invest in my company,” Bill says.
Personally, I would never borrow money from friends and family.
What if I accidentally bought a house that’s a money pit or a contractor screws me or the market tanks (or whatever else) and I can’t pay them back?
Yuck. That’s their retirement money. I don’t need that stress.
But I wouldn’t be opposed to borrowing from strangers, depending on the rates. Which Bill says can be anywhere from 4-5% all the way up to 8- or 9%.
“Again, far superior to hard money or bank money just because it’s so flexible,” he says. “The terms, the rates, the timeline, the amount you get – it’s all flexible.”
Plus you don’t need to get an appraisal, you don’t get gouged to death with fees.
And yet, it’s a win for these lenders too. They can make passive money in real estate without getting their hands dirty, Bill says.
Which, if I’m playing devil’s advocate, why would they wanna move all this money around and take on all this risk only to get, let’s say, an 8% return?
Especially when the S&P 500’s averaging close to 14% over the last 10 years?
Then again, Bill hasn’t had any issue talking people into this. So, who knows, maybe I’m overthinking it.
I definitely see the advantage for you.
Private money’s a great way to get into real estate if you’re broke and you’ve got bad credit.
And yeah, who wants to pay obnoxious interest rates and agree to terrible terms and still not have all the money needed to fund a deal?
If you’d like to learn more about Bill’s methods, he’s got a variety of programs you can check out:
- The $500k Challenge
- 7 Figure Academy
- 7 Figure Runway
- 7 Figure Altitude
- 7 Figure Multifamily
- Flip Hacking Live
Plus all sorts of courses, communities, and events. Book a call with Bill’s team to discuss pricing.