How did YOU go about raising you first private funding?

Question

Good evening BP,

I am looking to purchase my very first deal this summer and I want to acquire the property by acquiring private funding either from friends or family.

My question to all of you is how did you go about acquiring your first private funding? Did you already have a property in mind to present when you asked for the money?

Any tips would be awesome!

Thanks in advance

Teri Skrab · Answer

Hi Daniel,

My Husband and I are interested in the same topic. We are looking into funding options and had the same thought, starting with our family and friends.We are new to this as well but I was thinking about presenting it as a business proposal and showing them a sampling of a property we already ran numbers on. This way they can easily see how we asses a deal and what the potential looks like. Tell them that it's also an opportunity for them to make money on the deal as well by loaning it out at a negotiated interest rate. It would be a good way to see if they would be interested and think of it as an open credit limit for you. If they are interested, find out what they would be willing to loan out, and when you do find the deal and run the numbers, you can show them that one specifically so they are apart of it and not just loaning out money in good faith on the first deal. You can do it with a few family members and it would help to know what could be available to you so you are ready when you find that deal! Hope this helps a little. Good luck on your first deal!

~Teri