If you found yourself with access to private money??

Question

Hi Guys. Been soaking up knowledge here for awhile now. Reading alot.

I can’t get into specifics, but say you a personal connection to access private lenders through a private equity firm...what would you be doing?

Bear in mind, you’re in debt, young with little RE experience (lots of knowledge though.)

Would you be looking for deals that need funding and if so, how?

Or would you try and utilize this to get your own deals, bearing in mind that you don ‘t yet have high income to warrant huge loans, etc?

Account Closed · Answer

I mean this is a ridiculous assertion to make...I don’t really have a comment back except keep being successful Jim!

Account Closed · Answer

No offense taken Jim. As with most Millennials, Debt and median income happens to be keeping me down at the moment. As in, I am not necessarily looking to even utilize this myself.

Even if I found a wonderful property, banks, to my knowledge, are extremely stringent with commercial loans. Doubt they would loan someone like me a half a million dollar loan.

Account Closed · Answer

This can change deal by deal, as there are certain programs and also many different private investors available. Deal by Deal basis to my knowledge.

Jim K. · Answer

Sorry, Fred. I did not mean to insult you. That was actually meant as a compliment. I am a weird dude, clearly you are unafraid to put yourself out there with humor, and that's healthy. I shouldn't have commented, i have little of value to contribute here.

If I had access to more private money what I would likely do is keep doing what I'm doing but perhaps at a faster rate. I would work to increase my deal flow and my execution rate converting acquired SFR in C/D neighborhoods currently experiencing an increased public budget into long-term rentals.

Bob Woelfel · Answer

I would agree with @Nick C. on this.  Your ability to find deals will really be the driver of anything here.  If you can source great leads and find deal flow then potentially the sky is the limit.

Nick C. · Answer

Yes you should be looking for deals. This whole business is based on the ability to find deals. If you can find deals you will do well. If not, no amount of private funds, regardless of the source, will help you.

Jim K. · Answer

"I can't get into specifics" from a guy with a profile pic of himself wearing a suit and shades, flashing double thumbs up at the camera. Classic. My double thumbs up shot used to be me in front of Potato Jesus in Borja, Spain.

Don't go to the Mafia for a loan. Once they get their hooks into you, they'll take it all. Happened to my uncle.

Isi Nau · Answer

Hey Fred.  Does your access to the private funds also come with lower than market rate terms and interest?  If so, then you've got something to work with and can bring value to the table to an experienced investor.  If not, then the best you could probably do is use those funds to do a deal on your own.