I want to get started on buying properties using private money lenders. I was wondering, how do I go about finding someone that will loan me the money for a house or property? And typically, what is the expected return that the lenders expect from a deal?
Rental Property Investor · Tampa, FL · Member since 2020 · 15 posts · 5 votes
3y
Hi Daniel,
One option for you would be to visit Pace Morby's Creative Real Estate facebook group. There are a ton of investors and lenders in there and I've seen a lot of posts looking for PMLs. 10% seems to be the standard return. It's not much info, but I hope that helps some!
I want to get started on buying properties using private money lenders. I was wondering, how do I go about finding someone that will loan me the money for a house or property? And typically, what is the expected return that the lenders expect from a deal?
I want to get started on buying properties using private money lenders. I was wondering, how do I go about finding someone that will loan me the money for a house or property? And typically, what is the expected return that the lenders expect from a deal?
Thank you
For private money, you will usually need 20% down to start. Since it's private money, your rate may be a little higher than other loans. You'll also need to meet the private money lender's qualifications to be able to get private money funding. Each private money lender will be different
Just like Daniel, I'm also looking for a private money lender to extend a credit facility to me. Unfortunately, I don't have a 20% down payment. However, I have all the experience needed to successfully build any home from ground up. I have a Bachelor's degree in Engineering; I'm a Georgia-licensed Residential contractor, and also a licensed Real Estate Agent. I've been building houses abroad for many years and I have recently built houses with and for investors here in Georgia. They funded the construction 100%! Sequel to the above, I'm anxiously looking forward to having a reasonable credit line to enable me continuously build houses for sale in line with my passion. As a builder, I'm open to partnership with good sharing formula.
Please note anyone offering stupid low rates, says something is guaranteed, charges fees upfront are not legit
How low would you consider fraud? I have a private lender initially quote me with 6.95% today. 1. *Loan Amount:* Minimum $10,000 to maximum $5 million. 2. *Loan Term:* 6 months to 25years 3. *Interest Rate:* 6.95% 4. *Fees:* application fees, insurance fee.
Please note anyone offering stupid low rates, says something is guaranteed, charges fees upfront are not legit
How low would you consider fraud? I have a private lender initially quote me with 6.95% today. 1. *Loan Amount:* Minimum $10,000 to maximum $5 million. 2. *Loan Term:* 6 months to 25years 3. *Interest Rate:* 6.95% 4. *Fees:* application fees, insurance fee.
That is would raise a lot of alarms because: 1. $10,000 to $5M. First sign. Private lenders do not do $10,000 loans. The ones that do, also do not do $5M loans. 2. Same with terms. 3. Rate is too low. If its below 8% I would raise red flags. 4. Ask them ok, I have my title and escrow company lined up. Can you confirm your name, address and contact information as we will need to run everything through escrow. To add to this: Are you creating the documents? if so please send to escrow. Once they receive all paperwork from me and they will simultaneously release funds to me and any fees to you.
Let me guess:
1. they have an aol, yahoo or gmail email address.
2. Their website is wix and has no names or photos