Private Lenders

15 Replies

I'm currently working to build a list of lenders. It has been easy finding hard money lenders, but obviously at higher interest rates (plus points). I've heard that private money lenders (individuals) offer better terms. I'm interested to know how to find these individuals. I'm looking for lenders in the Corpus Christi, TX area since that is where I will conduct business. Any ideas/suggestions are appreciated.


In my experience, the best way is through personal connections. People need to trust you to be wiling to lend to you and so it's vital to have a good relationship with them. This could be friends or family or other people you meet. But it will take time to gain a stranger's trust. It would certainly help to have some deals under the belt to show them. But I would also recommend putting together a prospectus and business plan. Also, it would be good to prepare an "elevator speech", basically a quick rundown of what you do and why people should invest with you. But be prepared to spend a lot on lunches and dinners.

@Steve West , as @Andrew Syrios stated, private lenders should be people already in your sphere of influence. So you might have to seek out their interest in investing, but you shouldn't be seeking out the initial connection.

For a first deal, you will probably just have to find someone who knows you, believes in you and is willing to loan you money. After that, it should be a bit easier (assuming you were profitable).

Some suggestions I've heard (note: I have NOT yet done any of this, so take with a grain of salt) is to mention your successes when people ask "what's up?" "Oh, I just profitably flipped a house and helped my grandma make a good return on some of her idle money. Do you know anyone who would be interested in participating in something like that?"

Good luck. I'm hoping to be seeking private money in the near future myself.

Check with your local Real Estate Investment Club/Group. Its a great way to network with other investors and source local funds.

Its true that local private money lenders can offer better rates/terms than a hard money lender. The only down fall is the local investor typically does not have as deep of pockets has a hard money lender. If you prefer the private money lender make sure you network enough to have a few in your back pocket!

Thanks Jennifer. Good advice.


A couple tips.

Don't sound desperate ... no matter what.

Try this as a conversation starter ...

"I'm expanding my business and I need your help. Who do you know who has invested in ____________ (investment real estate) in the past?"

If you get a name, follow up with "How do you know Joe/Jane Investor" and "What is the best way for you to introduce me to Joe/Jane Investor?"

Be sure to ask it as "Who do you know ..." (requiring a specific answer) rather than "Do you know ..." (which is a yes/no question).

Good luck.

These are all such great tips on private lenders. Thanks guys! I'm brand spanking new in this business as well. Literally, 2 days in.


Friends and family offer the best rates. However if that option is not available, in my opinion its better to pay a private lender their fees and still participate in the deal and make something rather then missing out. 

Best of luck in all your ventures. 

Agree with @Anthony Dadlani  .  I pay my friend & family very good rate, but I save on points vs hard money lenders.  A win-win situation for both of us.


I am a contractor in the Corpus Christi area, I have a few contacts you may be interested in for hard money and private money

I have been using private money for many years with great success.  I have also been able to lend my cash out at 10% short term.  Always make it a win-win for both parties. 

Get on the phone and call people. If you have a good business plan, you can find private money. I call people all the time to ask them to either buy property or loan money on reasonable terms backed by real estate. Works. Just takes consistent effort. Good luck. 

Does a private money lender fall under the SAFE act?

My name is Mike Wright and I have successfully flipped 2 homes in Md using private investors at 10% of the borrowed amount period, short term up to 12 months + 1% each month after, IF it takes longer. I have down payment money,good credit, and a condo paid off as collateral. I would love to do some deals with you @Laura Roper u my email is [email protected] if possible, I would like to see your terms. Thanks


One of the best ways I have found to locate private investors are going to investor club meetings.  Pretty much every area has them.  They usually have a mix of RE investors.  Buyers/sellers/flippers  and very often people with money looking for opportunities.  It is a great way to meet private investors and build rapport/credibility.  Most have guest speakers with an educational topic, so that is an added bonus for going.

A great website is   There are meetups for almost every topic you can think of.  You should definitely fins some RE investment meetings

Hello, I'm new in the Investing area and I'm looking for Private Lenders in the area of St Charles IL 60174

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