Basically in a nutshell I'm convincing family and friends who do not understand Real Estate Investing, who have the funds but not the knowledge to work with me. I'm gonna ask one of my friends who doesn't have much money but has excellent credit to be added to my LLC so we can use his credit score to get approved through A HML. Specifically LIMA ONE. I like Lima One was just wondering if there were any other lenders who also do something similar that funds Fix n Flip in ky Loan amount 50k ARV 85 to 100k (I know small). Just like for my potential investors to have options. Any commentary welcomed thank you
Hi @Dante Foreman ! Nope, I do not recommend convincing family or friends, particularly those who don't understand REI, to work with you.
Imagine taking a cross-country road trip with a bunch of cranky teenagers, none of whom drive and all of whom are just this minute entering puberty. How's that for a visual?
For one thing, your people will never be truly comfortable with an investment they don't understand. So, no matter the results, they won't be satisfied, and it'll be your fault. Also, you'll spend a ton of your time explaining and reassuring them as to why this scary thing happened or that good thing didn't happen, and what that means to their investment.
I've racked up well over a million dollars in private lender debt over the decades, so I'm not at all against the concept. But, if you do things right, smart private lenders should be throwing their money at you!
That's a very good analogy mitch I appreciate it. What do you suggest I do?
My recommendation is to develop a strong business plan and strategy and reach out to those who broker for lenders who are organized as a Reg D or A with SEC exemptions. They will help you connect with underwriters and they don't charge you. They only get compensated if they get you funded and closed and then by the lender.
@Nate Marshall Hey great info can you give me some examples of brokers who work with lenders