How do you legally search for private lenders? I know everyone says talk to friends/family and other people around you. My issue is all my friends are still in college and have college debt to worry about and are in no position to lend money even if they had it. I've also had no luck with relatives. I am currently in the financing process for a duplex I have under contract and the red tape with banks is just ridiculous and I am worried they won't lend me the money. If they do, I am worried about hitting the max amount of mortgages in the future that they will allow me to have. I have a good credit score, full time job, all the qualifications a bank would require and some money for down payment. Should I just get use to this or would searching for a private lender be a good idea? I do all my homework on the properties I look at and with the help of BiggerPockets calculators I am able to find properties the hit or are close to the 2% rule.
You can search any way possible. BP. Run ads on Craigslist. Friends. Famly. Co-workers. People in your church or other organizations. It takes time so don't give up.
Attend local real estate investments groups or clubs in your area or within driving distance. Usually there's a variety of individuals who attend in various spaces of the business.
All of the above. You didn't say how many other deals you have under your belt in addition to this duplex, so I hope you also have a plan to develop "street cred" in the sense of completed deals. Have you looked into hard money lenders as opposed to private lenders? I'm a cash investor (don't like debt) but sometimes I'm willing to partner with a student or new investor (as opposed to a loan - and no, this is not a solicitation because I don't do out of state investing lol). Maybe you could think about it in the sense of "what would make a cash investor who doesn't know me take a chance on me and my duplex deal?" and then deliver that to the people you're hoping will invest in you.
Thanks everyone for the advice! @JJ Conway And I am a newbie, this would be my very first deal if it goes through. I believe that's most of the reason I am having such trouble with banks. Since you are more experienced with this type of situation, what would you suggest I pitch to possible investors? I guess that is where I'm struggling.
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