Private Money

8 Replies

My husband, Gary, and I have invested in two properties. The second one is on the mls right now. Both times we used hard money which eats up so much of the profit.  Where can we find private lenders with better terms?

What terms have you got in the past?  Hard to tell you where to go unless we know this.

Are you keeping the homes for yourself or flipping them retail?

Cindy,

I would suggest getting these 2 under your belt, putting a portfolio together, and then shopping around to try and get lower rates. Most HM lenders will drop some once they see you can produce. Are there network groups near you? If you have a good deal and proven record, you can offer your terms to others and develop your private lender group that way. Check on BP for local area members as well.

Hope that helps..

Rafael

Are you flipping or are you holding?  If you are flipping your options are limited to private/hard money.  If you are holding the property there are products that have better rates and terms.  These products are Fannie Mae, Freddie Mac and commercial deed to deed loan products.

@Cindy Wyman  if you would like to post your deals to advertise for a private lender you can do so on the Marketplace but keep in mind you need to have an upgraded account to do so.

Cindy, What upgraded account does someone need to have? 

Originally posted by @Joel S. :

Cindy, What upgraded account does someone need to have? 

 You need a Plus or Pro account.

Is there any concern about Title 2 regulations when soliciting investment money from someone who is not an "accredited investor"? I know when looking for private money you should aways avoid asking people if they want to "earn X% a year" but any concern with a Title 2 situation?

@Cindy Wyman In order to find other BP members that might be interested in your deals, you will need to spend some time on here participating, answering posts, etc. In doing that, you give others an idea of how well you know your business.

Money is the one thing that everyone needs to do deals, and it is competitive finding it. Lenders are looking for solid deals with good profit margins, experience, good returns, and consider the type of property (SFR, MFR, fix/flip, new construction, etc.) Many also do loans regionally.

Also, "Private" is a relative term. There are private individuals that make loans, but that doesn't necessarily mean they loan out money at cheaper rates than HML. There are HML that loan at cheaper rates than private individuals, etc.

The best advice I can give you would be to post your deal on marketplace, give specific details about it, and see what feedback you get. 

Also, I'd suggest you complete your profile and upload a pic, it gives your posts more credibility to some. 

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