Calling Private Lenders for Long term business relationships

3 Replies

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. 

@Craig Clark

What's hurting you here is a combination of low loan sizes and the need for local presence.  If your loans are little, a local bank or credit union is where you should be shopping, not necessarily a private lender.

@Stephanie P. Thank you for the information, apart of my problem is that the barrier to entry here in Texas is a bit high so areas with more affordable housing is were I have to focus until I gain traction. I am looking into other local bank and credit union options and the pre-approved loan I have is still on the table as well. My real issue is covering the cost of the rehab because I have yet to find a local lender that would even hear me out on that. I was hoping to find a private lender that would be willing to lend up to 70%-75% based on the homes ARV (which should be fairly close to 100k but I am still waiting for additional comps from my realtor) or the flat $75k.

Even  if this is not a deal anyone is willing to do, I would still love to get any additional information I can and potential contact information for a lender that would be willing to work with me for homes over $100k because I will be looking to buy deals in my own backyard as well.  Dallas is a hot market right now and very competitive, but there are still deals to be found here if you have the capital. 

Originally posted by @Craig Clark :

@Stephanie P. Thank you for the information, apart of my problem is that the barrier to entry here in Texas is a bit high so areas with more affordable housing is were I have to focus until I gain traction. I am looking into other local bank and credit union options and the pre-approved loan I have is still on the table as well. My real issue is covering the cost of the rehab because I have yet to find a local lender that would even hear me out on that. I was hoping to find a private lender that would be willing to lend up to 70%-75% based on the homes ARV (which should be fairly close to 100k but I am still waiting for additional comps from my realtor) or the flat $75k.

Even  if this is not a deal anyone is willing to do, I would still love to get any additional information I can and potential contact information for a lender that would be willing to work with me for homes over $100k because I will be looking to buy deals in my own backyard as well.  Dallas is a hot market right now and very competitive, but there are still deals to be found here if you have the capital. 

You could try going to REIA's and meetup's in your area.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here