Private Money Lender ?

[Lily Ardila]

Hi all! We're currently trying to get started in acquiring a rental utilizing the BRRR technique in Florida. Would anyone happen to know a private money lender or would know where to start in finding a good private lender? Thanks guys! :)

[John Thedford]

Hello @Lily Ardila

Welcome to the world of RE investing! I see you are asking about private lenders to acquire property. "Private lenders" and "hard money lenders (HML) are terms often used. Whats the difference? The big difference for me (others may disagree) is the terms. Others say "private money" is people you know and "hard money" is other people. Anyways, the BIG factor in making the deal work is terms. If you can acquire money at low or reasonable rates for long term buy and hold that will be the difference between having a profitable deal vs losing money on a buy and hold. As an example, I sometimes borrow from friends and pay in the 6% range. That isn't as low as conventional financing, but is by far less expensive than "hard money" at 14%, 15%, etc. If you want to fix and flip with a short hold period then hard money rates may work. Long term, they are too expensive.