For those of you who have not worked with private lenders or equity partners in the past, know that at some point you will need to go this route if you plan to expand your business. If you have worked with these investors in the past, you know realize it’s very important to ask the right questions up front to better understand that investor and how to best structure a win/win situation with them!
It can be tempting to talk about the great deals you have lined up, your rate of returns, or your company’s track record when you speak with a new investor. Before you get into anything about yourself, you need to take some time to get to know your investor. In this video, I discuss three important questions you have to ask to really get to know your potential private money lender or partner.
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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.