I have no family with investment money and have been entering some REI groups with little success with finding private lenders. I have zero experience with dealing with private lenders so I may be missing opportunities. What sort of questions and repayment documentation or ideas should I be focusing on. Essentially how do I set up a repayment plan with a % gain for the private lender.
Hi Chris! To be transparent, I haven't yet gotten a private money loan, though I might be able to provide my perspective on this to help you if you're open to listening.
Right now you're focused on the technicals more than building up relationships and a reputation of being an honorable and knowledgeable investor. People do business with people they trust.
Currently, I'm dedicating all my time to educating myself on finances, stocks, and real estate. While doing so, I'm talking to friends, family, and meet up with members of my progress and topics I've been learning about. What this does is show them my dedication to the craft of investing, let them know I'm an investor, gets them thinking about investing themselves, and if they're thinking about investing because of you, they'll think of possibly investing with you.
So, while you learn the technicals, just enjoy connecting with people, educating them, swapping stories, and you'll build a network slowly where you can have a higher chance of getting a private money loan.
Thank you Peter, I have been doing most of that for a year now. What I am taking away from this is that I need to find new people to network with and grow my relationships. I greatly appreciate your time to respond and give me your views. I love receiving as much education and helpful tips as I possibly can.