Attracting Private Money Online For Your Real Estate Deals

Access to easily available, cheap private money to finance your real estate deals is a must for successful real estate investing. Attracting private money investors demands excellent presentation so they see you as the right person to invest their money with. You can only gain their trust if you can convince them that their money is safely invested in your real estate deals.

A well thought out private money web site does this for you even before you talk to potential private money investors. Here are a few things to consider when attracting private money and identifying the right web site for your real estate investing business.

First, why private money?

1) If you like it, it is a deal

Can you use conventional lending for a deal that involves creative financing (such as taking over payments)? Even deals that could probably make you $100,000?

Most unlikely!

No bank will finance you unless it is a straight conventional buy; at least I do not know even one.

When you have a solid flow of private money that you can turn to at a short notice, you can close any deals you want; if you like it, it is a deal!

2) Close more deals
With private money, you are the under-writer. This means you can do deals that other investors cannot handle simply because you have a ready source of cash from your private money investors.

Even if you find deals with time constraints, you can still close on them because you can close on such deals as soon as you find them.

Conventional lenders typically take at leat 30 days to close, and come with tons of under-writing conditions. Hard money lenders can only lend on deals that meet certain criteria (such as 70% minus repairs). None of these conditions exist with private money lenders.

3) They are cheaper
Hard money lenders typically charge around 16% interest and higher, plus points in most cases. Conventional lenders may not even close on most deals unless they are conventional.

4) You do not need your own money
Hard money lenders will charge you points in advance and interest for the first month to close on your deal. Also, they will not lend you money to rehab in advance, so you may need a considerable amount of money in the bank to get a medium-sized deal.

Conventional lenders need you to put some money down, typically 10-20%. Not so with private money.

Web Sites For Attracting Private Money

Whether you actively market offline to target potential private money investors or you depend on search engines, your battle is halfway done if the potential lenders find more about you on your web site before they talk to you.

A good private money lender web site must present you as a polished professional to potential private money investors or investors so they can fund your deals with confidence that their money is safe with you. In turn, you get all the money you need to financeinance deals that other real estate investors can never touch.

A private money lender web site must be specifically designed for attracting private money lenders to finance your deals. A web site that is simple, professionally designed and laid out, and most importantly, one that leaves no doubt in potential private money lenders minds that you are the best person they can invest their money with is likely to be the best web site for this purpose.

Obviously, you do not want to look sloppy to the very people who will finance your deals.

This web site must present you as a polished professional real estate investor who is at the top of his game. You must come out as a successful business person who private money lenders will not think twice to lend their money with.

The content of the private money lender web site must be professionally written to convince private money investors that you are the best real estate investor for their money. It must also be fully optimized for search engines.

Choosing the right private money lender web site for this purpose is therefore a must to your business success.