Acquiring capital for rental properties through private lenders

Acquiring capital for rental properties through private lenders

Real Estate Agent · UT · Member since 2019 · 19 posts · 16 votes

Hi Everyone, 

I'm a real estate agent in Southern Utah trying to grasp this great opportunity of the current market conditions. The only problem is the lack of capitol I have. I am in tuned with the market and know of wealthy individuals but I just need some guidance on how to package an enticing form so they invest in my company for real estate. Is it something I could set up as a hard money loan with a longer term on it and lower fees? 

Any feedback would be greatly appreciated! 


Victor 

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Most likely you'll want to set it up so they're writing you a loan for a specific property, not investing in your company. As far as term, fees, interest, etc, that's something you need to work out with them. There are prevailing market rates that professional private lenders offer, but there's nothing saying you can't give lower returns to someone else. Matt Faircloth's book on Raising Private Capital from BP is very good on this topic.

  • Investor · HI · Member since 2017 · 328 posts · 124 votes
    6y

    Maybe you could give them an equity split so they get a piece of the action when you exit.  Might be enticing if you're rates are lower.

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