Private Lenders (Hard to find)

[Account Closed]

I’ve communicated with four parties about private lending in the past 2 weeks. Two of them were scammers, one was legit, and the other never followed up with me.

What is your experience with private lending?

Is this something that takes time to lock down? When can I find resonantly priced private money? (7% - 13% interest with fair fees)

I am sure terms are negotiable, but what have you commonly seen?

Thanks,

Nick

[Kyle J.]

@Account Closed When you say you “communicated with four parties about private lending”, what exactly do you mean? Private lenders are typically people you know who are willing to trust you with their money. 

It almost sounds like you might be just reaching out to people blindly on the internet hoping they’ll lend you money. Not saying that’s what you did, but I didn’t get the impression you were communicating with people you knew very well (or at all). 

If that is what you did though, I’m surprised only two of the four turned out to be scammers. There are LOTS of fake “private lenders” on the internet who will be quick to take your money or steal your identity.

My normal advice has always been to go to your local REIA meetings and meet people in person (there's usually people with money to lend at those meetings) and get to know them. However, with almost all in-person meetings cancelled due to COVID, that's tough to do right now.

Perhaps in the meantime you might have some people in your inner circle you could turn to for guidance or even a possible loan? If not, I still wouldn’t reach out to strangers on the internet who claim to be private lenders. It’s just simply too risky.