Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
10y
The more deals that you do, the easier it gets. NO one will trust you with their hard earned money right off the bat on your first deal or two. Do some deals with hard money, make some money and let people know what you are doing. People will see that you are successful at what you do and will start to trust you. Network at your local investor meetings. Yes you are going to have to join groups, and within those groups of hundreds you will find 1 or 2 people that will have the money and trust to fund your deals. Network with investor groups, website, facebook, friends, family.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
10y
Everyone you meet is a potential private lender. Do the people you come in contact know what you do or wish to do? Do you know how to provide good returns and how to protect them? Can they trust you? If so, let them know.
Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
10y
The more deals that you do, the easier it gets. NO one will trust you with their hard earned money right off the bat on your first deal or two. Do some deals with hard money, make some money and let people know what you are doing. People will see that you are successful at what you do and will start to trust you. Network at your local investor meetings. Yes you are going to have to join groups, and within those groups of hundreds you will find 1 or 2 people that will have the money and trust to fund your deals. Network with investor groups, website, facebook, friends, family.
Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
10y
@Michael Koncaba Private money can be a great opportunity for both parties. Im sure you will do great in investing but as other have mentioned above, track record/trust will pay a large part in raising money.
Ill also caution you on the importance of responsibility when raising money.
Money is a powerful thing and should be respected. In the business of real estate investing, the dollar amounts you’re working with can be very large even as a beginner. It is vital to understand the responsibilities you take on when entering this industry.
I added this point because over the years, I have heard a lot of beginners ask me about no money down and how to raise money from other people. I did most of my deals with my own money. I did this because I realized what it meant to borrow someone else’s money. When I borrow money from an individual, I know they are giving me dollars, but at some point in that person’s life, those dollars were traded for time. What I mean is if someone lends you $100k and back when they earned that $100k it took them 3 years to do so, it means you’re not borrowing $100k from this person; you’re borrowing 3 years of their life. When you hold money to this level of importance, you understand the responsibility it carries.
Raising money is great but it carries a lot of responsibility you have to be aware of and ready to take on.
Wholesaler · Saint Louis, MO · Member since 2014 · 312 posts · 49 votes
10y
@Shawn Roberson well first of all I can pull private lender leads anywhere in the US. I would then send them a letter that is FEC compliant so you do not get into trouble. You can contact and connect with me for more info.