Best private money options. Go!

4 Replies

Two part questIon. Say you had enough for 10% down on a good deal would It be wise to get private money for the rest (projecting a mortgage of 1500 and PML payment of 500 and cash flow 700/mo) Let’s say you have exhausted all friends, family, colleagues for that other 10%, are there private lending companies out there that would negotiate terms?

There's HARD Money lenders out there, but most private money people do not advertise.  The best way to get private money is consistently do successful deals and build a track record of success.  The money will come to you at that point.  I turn away money all the time, I just say I'll let them know the next time I'm ready to do a big deal.

There are private money investors all over , how do you find them? That is the question. Sometimes they go to REI meetings and just talk to people. Sometimes you can find a consulting firm to find you one.

Good Luck!!!!

Are you looking for short term acquisition money or permanent financing? Short term, a HML is probably your best bet, especially if timing is an issue. If you are looking for permanent financing, not sure how deep the market is for 90% LTV investor loans, but you might find something. If you can reposition the asset (repair, raise rent), you might get closer to that goal. In that case, look for flexible interim financing that will allow you to pay off without penalty and then rely on the increased value to lower your equity requirement when you refi.