Where are the private equity lenders?

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Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
6y

I can see that you might be displeased with Jay's response, but that doesn't mean he is wrong.  Private lenders are typically found amongst your family or circle of friends.  Sometimes, you can find them by networking and establishing a personal connection with someone.  The key point is that private lenders might consider lending you money because they already know and trust you.  This will allow them to take a chance on you where a purely commercial lender might not.  For example, you say that your credit score is insufficient for a bank or hard money lender.  Well, your brother, or your uncle, or your bestie, may not care that much about your credit score.  They know that you will pay back the loan because they trust your character.  Well, a bank or commercial lender does not operate on that basis - they deal with facts, credit scores, risk analysis, etc.  A possible exception might be a hard money lender who may take a chance on you if you present a solid deal, but they will want to be compensated for this risk by charging 5 points upfront and 15% interest.

So, all of this means that coming to a public board like BP and asking "where are all the private lenders" is an oxymoron.  By definition a private lender is someone you know already, so you won't find any here.  That's what Jay was pointing out.

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  • Member since 2019 · 18 posts · 4 votes
    6y

    Ned Carey. I get having to filter. Thank you for trying to help. 

    What am I supossed to do on this forum? So far It's like being a stranger in a gated community.  

    I'd go to REIA's but they are hours away.

    Kind of feel like I'm going in circles here if I'm being honest.

    I've learned some stuff from the podcasts. 

    I listen to and read everything I can on real estate investing, I own investment property, I'm a landlord,  I've had mostly good renters, I've flipped houses. So what?

    I

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    6y
    @Jennifer Ryan
    So far It's like being a stranger in a gated community

    I don't know why you feel that way. In this thread for example you have gotten a lot of replies. Most threads don't get a second page of replies. You have also gotten some votes for you posts. Most replies have been well intended and good advice.

    I would point out that one reason people might treat you differently is you have no information about you on your profile. You don't even mention where you are from. You also do not have a profile picture. None of these things are required. However having them helps build your credibility here. 

  • Member since 2019 · 18 posts · 4 votes
    6y

     I get what people are saying about the profile although.

    You can't trust a picture or what people say sometimes. Years ago I had a neighbor who was on a chat site and she was overweight so she put a swim suit model in her profile pic and people thought it was her.

    I thought that was wrong.  

    To get back on topic I can understand why asking about private loans would make some people uncomfortable.  Because there are a lot of horrible people . It's too bad because it makes people who are genuine and good suffer sometimes. That's life.  

    Had originally thought well everything could be proven. With identification, deeds and lawyers.

    I Would never do anything like that without legal back up.

    I'll just go through a bank.

    A few people were understanding on this thread. 

    Good luck to everyone who was decent that posted on this thread.

    Thank you for your time.

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