Does BP have a forum for connecting with Private Lenders?

Question

Is there a forum for connecting with private lenders on BP?  I'm working my local connections but would like to expand my search a bit.  Any advice on best places to connect?  Do you guys typically just work personal connections?

Jay Hinrichs · Answer

keep in mind private lenders are just that.. finding them on the internet is going to put you square into the sights of fake lenders who are out to steal your money.. they do it by approving you to fast and getting you to send them money up front.. they are pretty good at it..

you find private lenders through meetups and association with individuals you know.

Dale Ferrell · Answer

Hey Clarence

I am in the same boat. Always looking to add direct lenders to my database.

What I do is go to Google, Scotsman Guide, etc., get a list of lenders that loan in my niche, visit their website, and start calling.

Tell them you are a broker and would like to add them to your list of lenders. Ask them what their sweet spot is, what typical terms look like, what states do the lend in, who should you send deals to, how do they pay brokers, etc. Keep track of this is some sort of CRM (we use Apptivo but Salesforce, Hibspot, etc are all fine). Use hashtags to highlight search terms you can use when trying to place a deal.

Set aside a few minutes each day or a goal to contact three new lenders a day to build your list. Most are happy to speak with you especially if you have a deal in hand you can send over after the call. They are looking for leads as much as you are looking for lenders.

Good luck!

Stephanie Medellin · Answer

The marketplace is where you can connect with lenders.

Jay Hinrichs · Answer

Actually what your describing is a company or fund that is in the business of lending money.. those are hard money lenders.. what we have seen over the last 5 to 7 years is these companies CALLING themselves private money lenders to give the illusion that your getting cheaper money.. which as we know everyone thinks a private money lender is cheaper than a hard money lender.. but that simply is not the case most of the time.. there is a race to the bottom for private/hardmoney rates.. on the west coast it can be as low as 1 and 7 and most True individual that would be the definition of a private money lender IE they are not in the business to lend money they don't advertise they don't solicite most of those folks will want more than what the better HML are charging in todays market.

Nate Marshall · Answer

@Dale Ferrell

Well stated. I would also recommend they do that. Ask about their broker program. If you can sign up for it you'll get a lot more information and if a lender is not legit you'll know right away.

The idea that private money lenders are just individuals as in friends, family and local business contacts is old and tired. The majority of private lenders now are funds that have filed their offerings with the SEC. They're not all perfect and some have a lot of issues but many are solid.

Lien Vuong · Answer

If you're going to explore that route I would suggest asking for referrals from people who are actually using their lending services and take the feedback. Being in the profession I get a lot of calls about private lending and without personal experience or rapport with these solicitors I will not make the recommendation to work with any of them.

Clarence Browne · Answer

Thanks guys! Very helpful! I’ll check out the marketplace and keep working my network.

Nate Marshall · Answer

We are a Reg D 506(C) fund as well.

Does BP have a forum for connecting with Private Lenders?

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