Tips on raising private money.

[Seth Baumgartner]

I unfortunately am a very introverted individual, and I have to work on becoming more comfortable with interacting with others.

With that being said, what do you think are handy tips on being professional when talking with potential private lenders?

Or if you feel like comfortable, tell us a situation you've had happen to you.

[Chris Tarpey]

I had this issue when starting out.

I had deals coming in, solid deals, but my lack of experience and funding was forcing me to pass up on them.

I ended up finding a partner, forming an LLC and using what money we did have to fund the down payment - and the remaining funds through private money. It was our plan that if we were to find private money, we needed a track record for completed/successful deals. From there, we could show potential private money lenders what deals we've done and the numbers!

This proved helpful, and having a successful track record gave lenders the warm and fuzzy that we would do right by them.

This is also combined with showing and speaking about what you are doing. Conversations with family, friends and investors alike. Posting on social media and just biting into the branding of an investor mindset. You will find that people will gravitate towards you once you start closing deals and networking.

We've been able to raise enough private money to fund all our deals now - although we still leverage hard money and our own capital.