Best Way to Use MeetUp to Find Private Lenders

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Best Way to Use MeetUp to Find Private Lenders

Valerie Bloomberg
Rental Property Investor · Suffolk, VA · Member since 2013 · 8 posts · 0 votes

My husband and I are trying to purchase this property http://woltz.com/803/index.htm and are looking for private lenders to seal the deal. I have read on other forum threads I good place to find potential private lenders is on MeetUp.

If we want to get potential private lenders to come to a presentation and discuss possibly investing how do you approach folks.

Should we go to meetups and hand out invitations?

What are the issues with SEC rules we need to avoid?

Can we market on craigslist to get potential investors to come to a presentation?

What have you found is the best way to market to build a private lender list?

Any advice would be greatly appreciated! Thanks!

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  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    13y

    Hi Valerie,

    I have found Linkedin to be a great source for meeting real estate professionals. Their are all kinds of lenders on Linkedin marketing their services.

    Thanks.

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  • Tom Gunnison
    Real Estate Lender · Denver, CO · Member since 2013 · 81 posts · 6 votes
    13y

    I'd speak with other investors in your market and find out who their lenders are. You'll also meet quite a few private/hard money lenders at your local real estate investor meetups. You could post the details of your deal on this site with the subject "Private Money Needed - Virginia" or something like that and I'd bet you'll get some feedback from lenders in your area. There are quite a few ways to connect with private money. I'd try them all and see what sticks.

    You're not marketing securities, you're seeking a loan (I think) so need to worry about SEC regs.

    Best of luck to you.

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  • Tom Gunnison
    Real Estate Lender · Denver, CO · Member since 2013 · 81 posts · 6 votes
    13y

    *so no need to worry about SEC regs

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  • Dave Payerchin
    Rehabber · Columbus, OH · Member since 2013 · 30 posts · 7 votes
    13y

    Hi Valerie,

    I have found tapping into my personal network for private lenders to be the most effective avenue. Ideally, you already have a relationship with this person and there is trust established. Keep in mind that you are selling "safety". That is the most important thing. As long as you are doing good deals, the money tends to show up.

    I hope this helps.

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  • Shera Gregory
    Investor · Richmond, VA · Member since 2013 · 347 posts · 191 votes
    13y
    Hi Valerie, I think that perhaps the people who responded so far did not look at the property you want to purchase. Given a property of that magnitude you will want to have a lawyer involved from the beginning. You might want to re-post the question with an indication of the general scope of the funds you want to borrow since this is not just a 3/2 fix & flip.
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  • Roger Lin
    Burke, VA · Member since 2013 · 163 posts · 63 votes
    13y

    Valerie,

    Please contact me privately at [email protected]

    Roger Lin

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  • Valerie Bloomberg
    OP
    Rental Property Investor · Suffolk, VA · Member since 2013 · 8 posts · 0 votes
    13y

    The property we have been told is worth 20M but their is no current appraisal. There is a mortgage on the property of about 5M. The owner has lent the business 2 to 3M he would be looking to get back and the property needs about 3M in improvements that would need to be done right away. 1M in working capital would also be needed. There will be a reserve on the auction but the auction company tells us they do not know what that will be.

    What exactly would the roll of the lawyer play at this time and what type of lawyer would we be looking for to handle this type of deal?

    Would it be wise to go ahead and pay for an appraisal on this property to better understand it's value and for our presentation to potential investors/partners?

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  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    13y

    DEFINITELY need an appraisal - how else will you present the value, based upon what the current owner says it's worth, etc.?

    I agree with @Shera Gregory that this is a mega-financing deal that goes way beyond the scope of what most people in here are involved in (i.e., SFR's, duplexes, maybe 1-4 units, etc.).

    A deal of the magnititude you are discussing will need all kinds of professional guidance. I would surely involve an attorney that is well-versed in law as it relates to commercial real estate and lending practices in VA. Pay for pros now or pay the price later.

    Best of luck!

    "The impossible is often the untried." ~ Jim Goodwin

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  • Valerie Bloomberg
    OP
    Rental Property Investor · Suffolk, VA · Member since 2013 · 8 posts · 0 votes
    13y

    Thanks Everyone!

    0Reply
  • Jeff Greenberg
    Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    13y

    Valerie,

    Unless you are going to have one or two lenders (first and Second lein)you are talking about pooling funds.. No grey area here. You are in the Security Zone. Very soon, mid September you will be able to advertise for "accredited investors". Consult an SEC attorney before you start.

    Gathering investors is one thing, but getting someone to invest in you, yes you is another. What experience do you have that would interest investor. Investors of the caliper that you are looking for, can buy the deal themselves and hire staff to run it. What are you bringing to the table?

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    13y

    You will need to invest $3 - 4 million of your own money in this deal to interest a lender. Also, you will have to have experienced management team in place, pro forma financials, complete business plan, etc. Not really a matter of casually meeting a private lender at a real estate investment club meeting.

    I am afraid you have chosen one of the most difficult deals in the real estate world to try to pull off.

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  • Account Closed
    Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    13y

    Don,

    She would be very lucky to even find someone willing to fund a deal like that even with $3 or $4 million in the deal. What about reserves.

    Joe Gore

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  • Valerie Bloomberg
    OP
    Rental Property Investor · Suffolk, VA · Member since 2013 · 8 posts · 0 votes
    13y

    Lenders want 6M...getting this deal done is going to be a challenge but thank you all for your advice it is greatly appreciated!

    0Reply
  • Lawrence T.
    Commercial Loan Officer · White Plains, NY · Member since 2013 · 18 posts · 3 votes
    13y

    I am sure by now you realize this kind of investment is over your head. Start with residential flips or...

    Good luck to you and please pick up some books on Real Estate investing. That's want I did 30 years ago and up through the yearss

    Good luck

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