Putting a proposal together for private money lending

Putting a proposal together for private money lending

Rental Property Investor · Denver, CO · Member since 2018 · 19 posts · 19 votes

Hey Everyone,

I'm hoping to get some insight from those who are experienced and have been able to successfully fund their deals through private money from wealthy individuals. My partners and I know some wealthier people who have expressed interest in investing tand putting up their capital as a loan to us to buy a few STR in the Florida market that we are looking to close on soon. For those who have done this, I'd love to get your insight on what you've put together and what types of financial metrics you've presented to these people in preparation for securing their funding. Any advice and insight would be super helpful!! I've done several google searches and thought posting here would get us some results, as well.

Thank you so much

Nick

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  • Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes
    5y

    Build a platform or business plan that gives credibility. Website, social media profile, business plan, etc. Ask yourself, would you invest in the deal? What would someone look like that you would invest with? Who is your avatar investor or ideal investor? Now go find them.

  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 956 votes
    5y

    @Nick Elder, I don't think a website & social media profile for someone you already know will not do anything.  A business plan on the other hand will be key.  Showing them what the funds will be used for, how it will be secured, and how it will be paid back are key. 

  • Rental Property Investor · Denver, CO · Member since 2018 · 19 posts · 19 votes
    5y

    @Scott Wolf Thanks, Scott. I may be over complicating things. Agreed on your insight regarding the use of social media, but I can definitely see how that’s an important long term play for raising funds.

  • Rental Property Investor · Denver, CO · Member since 2018 · 19 posts · 19 votes
    5y

    @Chris Levarek Thanks for your insight, Chris. That’s helpful and definitely gives me some additional things to think about

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