Is LinkedIn a good place to find.....?

Question

Legit people who say they offer capital for real estate investing business? I get contacted by these people saying they offer funds for real estate investing like fix and flips, buy and hold, and refinancing.

Tony Marcelle · Answer

@Jabari Long I was thinking LinkedIn was the last place scam lenders would go to solicit their business. Criagslist maybe but not LinkedIn. Like you said, due diligence is a must.

@Rick Pozos I always wanted to go to a REIA club to see what it is like, but I never could make it because my 9 to 5 won't allow it.

@Andrew Syrios I believe the guy who contacted me is a hard money lender. He presented me with his loan terms and immediately it had terms like a hard money lender. I am concerned whenever a so called private lender reaches out to me eager to lend their own money to someone they never heard of.

Jabari Long · Answer

@Tony Marcelle You should do your due diligence on everyone regardless of where you meet them.  I have found less tire kickers on LinkedIn versus other social sites.

Rick Pozos · Answer

Become a member of several REIAs even if you have to pay for the membership. Ask people who they use for funding. THAT is how you are going to find HMLs. If you want true private lenders, they will come with time. Look at my facebook, business facebook, linkedIn, website, google Rick Pozos. It says that I buy houses. Friends and family come asking questions, I in turn ask them if they know anyone who has 50k or 100k sitting in a 401k or in a self directed IRA. That starts the conversation.

After you talk with about 20 people about IRAs and 401Ks you will find a private lender. Of course you have to have completed a number of successful flips also. Show the people who show interest your properties that you are rehabbing.

Andrew Syrios · Answer

I would have a hard time trusting any private lender wanting to lend their own funds. If it's possible to meet with such a person, you can try to vet them that way. But if the person works for an institutional lender, it shouldn't be hard to do some due diligence on them.

Tony Marcelle · Answer

It is getting hard to tell who is being real and who is fraud.

Andrew Syrios · Answer

More than likely they're hard money lenders or work for those national companies like Lima One and A10 Capital that provide financing for SFR to investors, albeit at higher rates than most banks. There are probably some fraudsters in there too, so you definitely want to be careful. I doubt there are many private lenders wanting to lend their own cash. There's just more demand for that sort of thing than supply, so I don't know why they would be looking on Linkedin for it.