Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
9y
I went to a few groups locally where I thought some private lenders might be, but what I found was that they were more along the lines of hard money lenders. That is not what I was looking for. I wanted some friends or friends of friends who would lend money without having to give tax returns, credit report pulls, and all of the formalities of a hml.
What I do is consistantly give information and knowledge to other investors about my business and how I can help them. I am finding out that when you help others, people want to help you too. I have been given a couple of people's own private lenders so that they can become mine also. I have also developed relationships with others who are now willing to lend me their retirement money at great rates. It has taken time and trust to get to this point.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
9y
"Private money" is supposed to come from people you already know so there are no such meetups. If you're marketing to private people looking to find a stranger to manage their money for them (my first indication they wouldn't have much to speak of) you're looking to market unregistered investment securities to unqualified investors and committing a lot of felonies along the way.
If your own family and friends do not trust your "feel" for real estate enough to go in on a deal with you your chances of getting a stranger to invest are next to nil. If you're not asking your family because you're worried about your relationship if things don't go well your relationship will be strained you're trading positive vibes for a potential prison term.
Rental Property Investor · Ypsilanti, MI · Member since 2016 · 230 posts · 86 votes
9y
Hey, Daniel, I agree with the others in that private money comes from your own personal networks. That said, one way to develop those networks is to attend meet-ups. Perhaps you can connect with other investors who are looking to lend out of their self-directed IRAs. I attend the one in A2, which meets on Tuesday nights. Maybe I'll see you there!