Best way to find or attract private lenders to your deal?

3 Replies

I am really interested in knowing how many investor attract private lenders to invest in there project?  is there any specific technique or language that is being used that works best?

Its a relationship business. My private lenders have been friends and family and some lenders cultivated by my property manager who trust him to not have them make loans to a dufus. Go to your local REIA meetings. Find out also about self-directed IRA and note-buyer meet ups. Network and keep networking. Talk about what you're doing. Talk about your past deals. It's not about using specific words and language. It's about the deals and your track record and their confidence in you to deliver as promised.

Talk about what you do. People often find real estate investing interesting.  One phrase that you can try is "I saw this great deal, If I only had the money" Say that enough times and someone will ask "well how much do you need. "

Find a Killer Deal!

There is plenty of money available, finding money is not a problem but finding a good deal is. My business did not slow down because of lack of fund but it did slow down because flippers are bringing deals with too thin profit margins. If I am not convinced that borrower will make a decent profit I will not lend. So again the secret is in a “Good Deal”. Also, when you present a deal to an investor or a lender make sure that it considers all important areas. I have “Flip Calculator” that you can download from my web page and use it as presentation tool.

Good luck,

George Krajacic