Seeking Advice on Finding a Private Investor for Cash Purchase

Member since 2025 · 15 posts · 9 votes

Hi BiggerPockets community,

I'm looking into a real estate deal that needs to be paid for with cash, and I could really use some help finding a private investor or lender who might be interested in funding this kind of purchase.

I'd appreciate any advice on:

- How to approach a private investor about financing a cash deal

- Ways to make the deal attractive to someone providing cash

- How to reduce risks for both the investor and myself

- Recommendations for lenders or investors who commonly work with cash deals for rehab or investment properties

I'm happy to discuss more details privately with anyone serious about funding opportunities. Any tips, connections, or suggestions you can share would mean a lot!

Thanks so much for your help!

Karinne

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Travis TimmonsPro Member

Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes

11mo

99% of the time a "private money lender" that takes down a deal for new or new-ish investor comes from a friend or family member. That part usually gets skipped over on podcasts because it sounds a lot cooler to say that you raised private money than it does to say that mom and dad or your rich uncle gave you money. If you are experienced with a track record of success, it's still hard to get a stranger to loan you their money, but it is a bit more feasible.

If you have some cash to throw into the deal (10-20%), you can find a hard money lender, but that is expensive money that comes with a shot clock. That puts way too much pressure on the deal to work out as I see it and can end badly. If you are trying to buy a property and have zero cash to put into it, you're just asking for someone to do you a favor by loaning you the money. That's just way too much risk given that you could walk and losing nothing if the deal goes sideways.

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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
11mo
Quote from @Karinne Ovalles:

Hi BiggerPockets community,

I'm looking into a real estate deal that needs to be paid for with cash, and I could really use some help finding a private investor or lender who might be interested in funding this kind of purchase.

I'd appreciate any advice on:

- How to approach a private investor about financing a cash deal

- Ways to make the deal attractive to someone providing cash

- How to reduce risks for both the investor and myself

- Recommendations for lenders or investors who commonly work with cash deals for rehab or investment properties

I'm happy to discuss more details privately with anyone serious about funding opportunities. Any tips, connections, or suggestions you can share would mean a lot!

Thanks so much for your help!

Karinne

Hello Karinne,

I'll shoot you a DM as I have questions on the type of deal (residential, commercial, etc.) and strategy (flip, long-term rental, str, etc.).
To approach a private investor and reduce risk, I'd recommend analyzing/underwriting the deal to the best of your ability and with conservative projections. The BP calculators are pretty good.

As far as making the deal attractive, you can highlight property features, location, and future upside. However, if the #s don't work, many investors will lose interest.

Lastly, have you considered Hard Money? @Shalom Yusufov is a local HML.

All the best!
Abel
REbuild Team - eXp Realty5234 Reviews
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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
11mo
"how to finance a cash deal"
If you need a loan, it's not cash. When a seller/deal requires cash, it's because they dont want to deal with the risk of financing falling apart, which is alwasy a risk with lending. You need a partner with cash, not a lender.

1 Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
11mo
99% of the time a "private money lender" that takes down a deal for new or new-ish investor comes from a friend or family member. That part usually gets skipped over on podcasts because it sounds a lot cooler to say that you raised private money than it does to say that mom and dad or your rich uncle gave you money. If you are experienced with a track record of success, it's still hard to get a stranger to loan you their money, but it is a bit more feasible.
If you have some cash to throw into the deal (10-20%), you can find a hard money lender, but that is expensive money that comes with a shot clock. That puts way too much pressure on the deal to work out as I see it and can end badly. If you are trying to buy a property and have zero cash to put into it, you're just asking for someone to do you a favor by loaning you the money. That's just way too much risk given that you could walk and losing nothing if the deal goes sideways.
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- Karinne Ovalles
  OP
  Member since 2025 · 15 posts · 9 votes
  11mo
  @Travis Timmons
  
  Thanks for the insight! that definitely makes sense. I actually have another property I was planning to leverage, and I do have some cash available. But as someone mentioned in a previous thread, what I really need is to find a private lender not a traditional loan. It’s definitely more challenging when you don’t have parents or family with that kind of capital to back you, so I’m just trying to navigate what realistic options are out there.
  0 Reply
Deborah Wodell
Lender · Sanford, NC · Member since 2024 · 347 posts · 116 votes
11mo
You’re thinking about it the right way. Private lenders can definitely offer flexibility, but there are some benefits to looking at hard money or even conventional options too.

Hard money loans can often help you close fast and still look like a cash buyer to the seller. They’re usually based more on the property and deal than your personal income, and once you build a relationship with a lender, the process gets a lot smoother.

Private money’s great when you have a connection, but it can take time to find the right fit.
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Frankie VozziBusiness Member
Member since 2025 · 335 posts · 82 votes
11mo
Hey Karinee, sounds like you’re on the right track thinking about private financing for that deal. I work with investors across the U.S. who need cash at closing for rehab or investment properties typically through short-term private or bridge loans that fund fast and let you stay competitive on cash-only offers. I sent you a Dm, Let's connect!

[email protected]516-888-7750
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