Mortgages & Creative Financing

How to Win Over Private Money Lenders or Partners for Your Deals

Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
161 Articles Written
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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!

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Related: How I Find Private Money Lenders to 100% Fund My Deals (& How You Can, Too)

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.

Please leave a comment and share a story you have about understanding investors needs.

Thanks for watching!

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, i...
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    Caroline Hires Real Estate Agent from Lexington, South Carolina
    Replied about 4 years ago
    Thank you for that very informative cast!! I am currently working on a project, looking for private investors. These tips are extremely helpful while I am preparing my pitch! Thank you again and have a great and profitable day!!
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied about 4 years ago
    Hey Caroline, Thanks for the comment! You don’t get off that easy though, lol! Tell us all more! What is the project, target amount to raise, projected return? What do you plan to offer investors? How are you going to structure your approach to your investors? I am hoping we can use your case as a learning for others, if you don’t mind me picking on you a bit, ha ha. Thanks! Matt
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied about 4 years ago
    Hey Caroline, Thanks for the comment! You don’t get off that easy though, lol! Tell us all more! What is the project, target amount to raise, projected return? What do you plan to offer investors? How are you going to structure your approach to your investors? I am hoping we can use your case as a learning for others, if you don’t mind me picking on you a bit, ha ha. Thanks! Matt
    Gloria Dulan-Wilson from Philadelphia, Pennsylvania
    Replied almost 4 years ago
    Thanks so much for that insight and information. I am somewhat intimidated by this process – even though I’ve gotten funding for the renovation of properties before, it was through the Non-profit organization I headed in Brooklyn. It’s different when it’s for your own project – and I admit I am nervous because I do have some potentially good deals that I am looking at. I am going to watch your video again – I really appreciate your candor.
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied almost 4 years ago
    Hey Gloria, Glad you enjoyed! Although it is different from an emotional and priority perspective, it’s the same when it comes to dollars and cents. Try pitching the deal to a few people as preparation to sit infront of a key lender or partner. That way you can get warmed up and perhaps get some feedback before you go for the real meeting with the lender. Good luck! Matt
    Victor Pierson from Spring, TX
    Replied over 3 years ago
    Great tips, Matt. Before watching this, I would have started out trying to sell myself, but looks like that’s the exact opposite tactic I should use! I’m an active investor, but all my work has been 100% self funded, so I’m completely tapped out while doing a project, and can’t move on to another one until it sells. So I’m now looking to expand my business by getting funding a variety of different ways, including private lending. I’m putting together a three page brochure to bring to meetings that outlines a variety of things, including what I’m all about, and some befores/afters. What’s your thoughts on the brochure track? Thanks again! Victor Pierson
    Roy Johnson
    Replied over 1 year ago
    I am looking in to raising capital to purchase multifamily (apartments) I have the time and knowledge. I am looking for acquisition fee 3 per cent and 25 percent equity..in deal. Standard 3_5 and 25_50 percent. I will give monthly returns. Min cash on cash 12 per cent and 1.4 debt service minimums. How would you approach attracting JV partners in this type situation. Get under contract then find investors? I understand deal you will find the $