Is there fear in using private lenders for the first time?
What advice would you give someone looking to find a private lender for the first time to fund their deals whether it be wholesale deals or using them to fund the purchase of multi-family apartments?
No fear, if the numbers work, why not?
Quote from @David Ramirez:
No fear, if the numbers work, why not?
The fear may come from the what ifs. What if something does not go as planned and the borrower is unable to pay back the private loan? How does someone new to getting private lender funds even approach the private lenders asking for the loan? How does that conversation start off?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
- Votes |
- 9,861
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Private lenders invest in people, yes the deal has to work but you have to be someone they want to invest in. That means a good track record.
Anything you do for the first time, fear will be there. It's normal. It's ok to feel fear. Embrace it; just don't let it hinder you. The beautiful thing is you're not alone. You have a community with BP that have like-minded individuals with the same goals. I would do your due diligence if you haven't yet joined your local real estate investor group join them. I'm sure they look forward to connecting with you and helping you accomplish your goals. I believe in you; you got this. If anything, I'm here for you. Best Wishes.
Quote from @Edwin Solivan:I appreciate that. I reached out to what I thought was a private lender about options to purchase a multi-family apartment complex. They told me they can only loan me so much, but I have to come up with a large upfront down payment. That is money I do not have. They suggested I open up a business line of credit in my LLC name to come up with the money. Is that a good idea to use a business line of credit in my LLC name to purchase real estate?
Anything you do for the first time, fear will be there. It's normal. It's ok to feel fear. Embrace it; just don't let it hinder you. The beautiful thing is you're not alone. You have a community with BP that have like-minded individuals with the same goals. I would do your due diligence if you haven't yet joined your local real estate investor group join them. I'm sure they look forward to connecting with you and helping you accomplish your goals. I believe in you; you got this. If anything, I'm here for you. Best Wishes.
Antonio, I'm going to share an idea with you. I recommend you invest in BP Pro. The education alone will close the knowledge gap for you. It alone will teach you so many ways to get started in different and creative ways. For example, to answer your question, not having the capital should not stop you from accomplishing your goals. I would recommend a JV deal on your first deal. Find someone who has the capital to fund the deal. BP is your go-to. I would start there. Because, Yes, you do need capital to get started. However, it doesn't mean it has to be your capital. Get creative and use other people's money. Again you got this. I believe in you.
Quote from @Edwin Solivan:Where do I find BP Pro on this site?
Antonio, I'm going to share an idea with you. I recommend you invest in BP Pro. The education alone will close the knowledge gap for you. It alone will teach you so many ways to get started in different and creative ways. For example, to answer your question, not having the capital should not stop you from accomplishing your goals. I would recommend a JV deal on your first deal. Find someone who has the capital to fund the deal. BP is your go-to. I would start there. Because, Yes, you do need capital to get started. However, it doesn't mean it has to be your capital. Get creative and use other people's money. Again you got this. I believe in you.
On the right-hand side of your BP profile click on your photo you will see options, go to account upgrades from there they have different options on how to upgrade. I hope that is helpful.
Quote from @Antonio Bodley:
Quote from @Edwin Solivan:Where do I find BP Pro on this site?
Antonio, I'm going to share an idea with you. I recommend you invest in BP Pro. The education alone will close the knowledge gap for you. It alone will teach you so many ways to get started in different and creative ways. For example, to answer your question, not having the capital should not stop you from accomplishing your goals. I would recommend a JV deal on your first deal. Find someone who has the capital to fund the deal. BP is your go-to. I would start there. Because, Yes, you do need capital to get started. However, it doesn't mean it has to be your capital. Get creative and use other people's money. Again you got this. I believe in you.
If you listen to or watch any of the Bigger Pockets podcasts, frequently they will give you a discount code to use for your first year of BP Pro. That's what I did. It's worth every penny so far and I'll be happy to pay the full price when it's time to renew. Best of luck!