Private Money
I knew this day would come. I've been stretching my money, and bank relationships, but since I'm closing on property #3 next month, I cannot go after another. I know of a foreclosure auctioin 08/19/14 in which a lakefront home in a Southern MN town will be foreclosed at 51K. I'm going through all my friend networks and REIA looking for private money, or two people looking to invest 25K at 12% and a kicker on the resale. I've never done a promissory note. But I've read Rich Dad/Poor Dad, and I realize fear is the hurdle to overcome. If it is a good idea, investors will show up. I've done some decent research, checked out the house, and even knocked on the owners door (no answer). A property two doors down is worth $600,000.00. The assessed value is $176,000.00.
It is humbling, looking for private money. I've assured my friends this is not a scam...and I still would not blame them for being skeptical. I've assured my wife we are not putting our money on the line with this one....I'd be sleeping on the couch if I do that. And I'm not soliticing you, btw. Just writing about it.
Comments (4)
I would definitely put together a lender prospectus with information about your company, an outline of your business plan as well as case studies. I've found ours to be very helpful when it comes to convincing people what we do isn't a scam.
Andrew Syrios, over 9 years ago
I feel your pain. I am looking for my first private lender deal. Your story is inspirational. Thankyou!
Lori H., over 9 years ago
It went well. The opportunity dried up, but I made two solid connections with private lenders locally...one really good lead. And it was a pleasure talking to both...lots of good shared experiences and a coule laughs along the way. I'll have a good source in the future if I need one.
David Moore, over 9 years ago
Have you found funding? Have you learned anything during the process?
Jeff Rabinowitz, over 9 years ago