Calling Private Lenders for Long term business relationships
I am looking for a private lender to build a relationship with and help fund my first purchase in the Pittsburgh market. I currently have no real estate investments under my belt and I'm looking to borrow around $75,000 to fund the purchase and rehab single family property I already have under contract. I am pre-approved for a conventional loan to purchase the home but after two extensive inspections, the prospect needed about $15k+ more work than I originally budgeted for. Thus, I am hoping to find a private lender to help fund the deal as it would be beneficial for us both.
I was originally going to back out of the deal because the seller initially refused to budge on any repairs and I am currently engaged in negations for a lower price of the home. If all goes well, this purchase will be about 40-50% under ARV.
I also have a couple of friends doing business in the area that could also be interested in a relationship with a private money lender and already have properties under their belts. One, currently has a 5 unit apartment building under contract for less than $70k and is looking for other funding opportunities, and another (who got started before us) could also use new potential lender relationships.
While I am currently looking purchase and rehab this single family home, I will be shifting my target to multifamily rentals after this purchase. Assuming this works out as a win-win for one another, I would love to build an ongoing business relationship that could benefit us all. Additionally, hard money lenders are not out of the realm of possibility, private money is preferred.
Please let me know if you have any questions.
Thank you.