How to approach family & friends for Private Lending

Question

Brit Foshee · Answer

Shantese Skrine

I'd really hesitate to take friends/family money until I had a decent track record.  I'd recommend doing some deals along side an experienced investor. I'd document everything and then present it to friends and family on paper.

Seeing it on paper makes it more tangible and factual.

When people first approach me regarding money, (unless I know them) I want to see everything in writing.  Just my two cents!

Best of luck.

Shantese Skrine · Answer

@Jeremy S. I believe he had a very bad tenant and he ended up selling the property & his "problem" I am going to get him to tell me the story in detail soon. @Brit Foshee thats a great approach & its makes a lot of sense. I just thought about his previous dealings in RE & being we are long time friends he would being willing kinda. But in reality he just completely shut me down. Which is alright at the moment being that i dont have anything on paper to show @Sylvia Grugett thank you so much! There is so many great ppl on this site & to think i was always scared to post & or reply. Thomas S. yes i have been marketing with no leads which i know its not an over night thing. Which my focus was on wholesaling at first & just that so I have decided to rehab which that lead me to tge whole private lender.

Rick Pozos · Answer

Shantese Skrine I hope that you are marketing to people in your area to try to find houses that you can buy at a great price. If you can flip a house when you have to pay 12%-15% and still make some money, then you can show your friend that you have a track record. Let them know that you can make even more money and they will be safer when you are borrowing at only 8%. You just have to find the really good deals to rehab.

This whole real estate thing does not happen overnight for most people. Start sending out postcards, letters, etc to targeted people in your area. Wholesale to get a little cash built up, then rehab something with some hard money. After a few deals you will be on your way.

Thomas S. · Answer

To get money you need a track record. Something to offer in exchange for their financial support or partnership.

First you make a name for yourself then you can bring others on board.

How to approach family & friends for Private Lending

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