How do you connect with private investors

Question

I have an investment property that is a sfh. Instead of buying another sfh, I'd like to scale bigger with a commercial property. What is the best way to connect with investors that are willing to make a deal since I don't have the capital to put down on something like a 10-15 unit property? Thanks in advance for any advice.

Yashira Sanchez · Answer

One thing worth adding: the relationship with a private lender often starts long before you need the capital. The operators I work with who raise most efficiently are the ones building visibility and credibility consistently, not just when a deal is under contract. By the time you're ready to scale into that 10-15 unit, your investor network should already know who you are and what you stand for.

Rod Hanks · Answer

@Eric Madson

I’ve raised money a bunch of times and honestly it’s not about “finding investors,” it’s about building relationships first. Most of my private money came from people I already knew or met through local meetups, referrals, or just talking about deals consistently.

What they care about is you knowing your numbers and having a simple, clear plan… not a pitch. First time I did it, I just walked someone through the deal, showed the downside, and how they’d get paid, and that was enough.

Eric Madson · Answer

Thanks, I appreciate your feedback. I have found a couple properties that could make money. I'm going to work on making connections, thanks!

Abel Curiel · Answer

Hello @Eric Madson,

Some recommended places to network and connect with private lenders are:- local events. eventbrite, meetup, and BP events- here on BP. use the search and keyword alert functions to actively and passively connect with people- your personal circle/sphere of influence. Start (or continue to) discuss REI with your friends, family, neighbors, colleagues, local business owners, etc. You'd be surprised how many people in your sphere already invest OR are looking to invest.

I like what @Mitch Messer mentioned, totally agree! "If you build it, they will come" - Field of Dreams !! If you ask 100 potential investors if they're interested in lending on a deal, many will say YES, few will write a check.If you present 1 deal to 100 potential investors, your phonen will ring off the hook.

All the best!

Abel

Mitch Messer · Answer

Hey Eric, are you currently finding 10-15 unit deals that could make money?

Because that's going to be way harder than finding the funding!

So, I recommend you keep doing SFH deals while you hunt for great MFH properties.

And every time you do get another SFH deal, be sure to invite a private lender in to take a 1st loan, even if you don't need their money, just to begin building a relationship with them!

In other words...

You should be using your SFH deals NOW to attract and develop your private lender pool for MFH deals LATER!

Dig your well BEFORE you're thirsty!

Mohammed Rahman · Answer

Hey Eric, totally agree with what's been said here already.

The honest answer is that private investors are everywhere but the relationship has to come before the ask. Keep showing up to the right places with the right people consistently (REI meetups, forums like this one, local investor groups). People invest in people they know and trust first, deal second.

Jumping from a SFH to a 10-15 unit is a big undertaking and the capital is only part of it. You want to make sure you're scaling with the right people who are aligned on the vision and bring as much to the table as you do - the wrong partner on a deal that size can be a nightmare.

Get really clear on what you're bringing to the table as the operator and what you're looking for in a capital partner before you start those conversations. That clarity alone will make you stand out.

Jerry Starr · Answer

Relationships matter more than anything in this space, especially with private lenders. Once you build a track record, access to capital gets a lot easier. That’s really the long game.That said, on a deal like this, I think people underestimate how flexible sellers can be. You’d be surprised how many are willing to offer concessions or even hold a second position to help cover part of the down payment.

That’s actually something we focus on. We allow seller seconds as part of the structure, as long as you’re coming in with at least 10% of your own capital. It’s a clean way to bridge the gap without overcomplicating the deal.

I’m also seeing more people talk about gap financing lately. It exists, but I’d be careful with it unless you have a very clear plan going in. It can get expensive and messy fast.We've also seen people go as far as using business credit cards to come up with down payments. Not saying that’s the first move, but if you really want the deal and it makes sense, people find a way.

If you’re making the jump from single family, I’d probably look at something up to an 8-unit first before going bigger. It’s a more manageable step up and easier to get your arms around.at the end of the day, the key isn’t just structuring the deal right, it’s making sure the numbers actually make sense and the property can carry itself while you stabilize it.

Caleb Brown · Answer

Locally is your best best. Attend meetups and be active in groups. I will say going from 1 SF to 10-15 units is a big step. If you are lacking capital then you need to bring something else worthwhile to the relationship. Nothing wrong with scaling single families until you have a better foundation.

Eric Madson · Answer

I appreciate all the advice, thanks. This is why I posted on Bigger Pockets. I am looking to start building relationships and making new contacts.

Mitch Messer · Answer

Quick sidenote: If you're really serious about attracting private capital, there are two things you should do immediately:

1. Add a photo to your BiggerPockets profile. People lend to folks they know, like and trust. Right now you're walking around a high-level networking event with a paper bag over your head.

2. Complete your BP profile, including a written description of your investment approach listing all your credentials, investments, and references, and also providing links to your other social media accounts, especially LinkedIn!

How do you connect with private investors

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