I am looking for private money to find my deals. I am sure this question has probably been answered 100 times. But how do I go about it. Any suggestions would be appreciated 🙂
Flipper/Rehabber · Member since 2018 · 87 posts · 67 votes
5y
@Charity Johns
It will come to you when you're ready. When people start seeing what you're doing and how it's going, people you know will want in. My wife and I did two flips on our own, after people saw the second one on social media we had about 6-7 friends inquiring about what we're doing and how they could potentially be involved. I created a private lender packet detailing what we do, our experience and results, closing statements, everything and offered them 10% APR on anything they lent us, interest only payments made monthly. We just went into contract on our 3rd flip and raised our goal of $180,000 immediately and had to close it off to some people who will have to wait for the next deal. We learned that if the deal is good and you're doing the right thing, the money will present itself
First let's clarify private lending. I define it as an individual who lends money. Many hard money lenders also refer to themselves as private lenders. You are not going to able to google private lenders. They do not advertise. I have met them at REIA meetings, meetups, real estate meetings and of course BP. They could be your next door neighbor. Read the book "The Millionaire Next Door". They will vet you just as well as the project you are asking them to invest in. It's just as important to invest in the person as it is the project.
Thanks Kenneth for the info. I will look on BP and my local REIA along with meet ups.
If I don't have much experience, but I were asking you for funding, what would be the kinds of things that would make you feel comfortable enough to invest with me.
Just looking for ideas on how to speak with private money lenders once I find them.
Thanks Kenneth for the info. I will look on BP and my local REIA along with meet ups.
If I don't have much experience, but I were asking you for funding, what would be the kinds of things that would make you feel comfortable enough to invest with me.
Just looking for ideas on how to speak with private money lenders once I find them.
I would be looking for an experienced partner. When you don’t have much or any experience you need to build yourself around a team. After you have a couple of deals under your built then you can do things on your own. I would want to know what deals you have done in the past and what the outcome of those were. Projected and actual outcomes. Any challenges you encountered and what did you do to resolve the issue or issues.
Flipper/Rehabber · Member since 2018 · 87 posts · 67 votes
5y
@Charity Johns
It will come to you when you're ready. When people start seeing what you're doing and how it's going, people you know will want in. My wife and I did two flips on our own, after people saw the second one on social media we had about 6-7 friends inquiring about what we're doing and how they could potentially be involved. I created a private lender packet detailing what we do, our experience and results, closing statements, everything and offered them 10% APR on anything they lent us, interest only payments made monthly. We just went into contract on our 3rd flip and raised our goal of $180,000 immediately and had to close it off to some people who will have to wait for the next deal. We learned that if the deal is good and you're doing the right thing, the money will present itself