Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
13y
Just typed this up in another thread but I'll paste it here. It's not really marketing but it may help:
Every time I buy a property, I buy a humungous 36 inch pizza for my co-workers to celebrate/bless the investment. Since I started buying pizzas quite often, people started getting interested. The great part is, is that I can offer them great yields, secured by a real asset, and the returns that are not tied to the stock market like mutual funds etc.
I haven't done any private lending deals with people yet. Just planting seeds and developing a track record. There are a lot of previous posts here on the forums where you can learn a lot of good information about it.
I would definitely be selective and don't make it seem like you need the money. Vet/qualify them out to be good "private money partners" and show them you can provide great passive returns if they are a good fit for you and YOUR operation. Hope that helps.
I would definitely be selective and don't make it seem like you need the money. Vet/qualify them out to be good "private money partners" and show them you can provide great passive returns if they are a good fit for you and YOUR operation.
I definitely wouldn’t suggest you play these games or come off as arrogant, @Deadrick Colbert. If you want anyone to loan you money, you have to let him or her know you need it, for what purpose, and be straightforward and professional about that. I do agree that referrals and references count.
Non-institutional lenders, which comprise all hard and private money, can be grouped into three categories: hard money lenders you can find on-line, private individuals such as your Uncle Murray or dentist, and private individuals who understand real estate and are comfortable loaning their own money on it. (I’m just trying not to get hung up on all the definitions here.)
You don’t have to market to the first two categories. You can go online for hard money or obtain recommendations from other rehabbers. Similarly, for those you already know and have a relatively close relationship with, you can simply call and show them what you doing, keeping them informed as you progress. The best way to find the third category would be to attend some local real estate clubs. That’s where these types of private lenders hang out.
In CA at least, with minor exception, only licensed RE brokers can advertise that they loan money, so you really do have to meet these people in person. Plus, this is truly a relationship based business. We loan money and would never answer an ad to do it.
In all cases, it’s the deal and your experience that creates your credibility. Showing a lender, even your Uncle, that you’ve been doing this successfully and can perform, provides a level of comfort for anyone that you’ll ask to put their hard earned money on the line for you.
Obviously, you also have to have a great deal to show them their money is safe should something go wrong and that there’s enough profit in to enable you to pay them back.
Finally, following through and always doing what you say will want them to do business with you again.
Good luck, Deadrick.
Investor · New York City, NY · Member since 2013 · 1k+ posts · 269 votes
13y
Dedrick,
There are many private lenders and hard money lenders on the site. Just post your request in the marketplace. Also bigger pockets offers a full directory of lenders.