Is 12% Enough to Attract Private Lenders? How Did You Find Yours?

[Steve Candor]

I'm building a business buying affordable single-family homes ($20k-$60k) in middle america (OH, PA, Il, OK, IN, WV, etc) and reselling them with owner financing.

I recently completed my first deal and am now trying to figure out the capital side of the business. I am out of state and country now so I cant do any local meetups. 

For those of you using private lenders:

Is 12% generally enough to attract lenders today?

Where did you find your first private lenders?

How difficult is it to find lenders when you're investing out of state?

I'm not looking to raise money through this post specifically. I'm just trying to learn from people who have successfully built relationships with private lenders and understand what actually works versus what sounds good in theory.

If you were starting from scratch today with no track record, where would you focus your efforts?

Should I be cold calling/texting owners on propstream? Ive tried but having no luck ...not sure if this is a dead end.

[Stuart Udis]

The issue you will run into is the collateral is lousy. A good lender is going to ask themselves what happens if we have to take back the property? There’s no conservative leverage that makes the collateral you describe safe.