whats the best way to approach a private lender

3 Replies

Originally posted by @Juan Espinoza :

Hi  I'm new here, and looking for some advice to get my foot in

I'm interested in flipping houses, I'm just having trouble in how to approach a private lender

 Start with family and friends. See if they want to invest for profit on your venture. Another good source is a doctor or dentist that you know or a business owner. Each of these are having a hard time making any interest on their investments and are probably looking for you. Give it a shot.

@Juan Espinoza And once you find someone, your pitch needs to be compelling enough for them to be excited to invest in you as opposed to other investment vehicles.

Have a plan written out with your strategy on the deal, projected ROIs, and any other stipulation that you can think of. Make sure all of your bases are covered before taking on their money.

Hello Juan!  Hopefully, you came to the right place to get answers.  I would recommend dressing up in either a suit or nice looking new sports clothes.  Show them on paper how you plan on making money and which type of real estate you picked.  Sound like you know alot about it.  You might tell them what you are doing now and if it is flexible.  You might tell them what range of their rate will be and how much they will potentially make.  Let them know you understand that their loan is usually 12 months or less.  You might tell them what you expect of them and how much of the profit they might make depending on their help beyond money.   Act trustworthy and like a friend.  Be truthful and do not hide anything.  Make a good first impression.  Act friendly and respectful.  Tell them you know the area you will be buying at and what you will be doing everyday.  Good luck to you!