Asking Friends for Money
Asking for help is something I struggle a lot with, let alone asking someone for money to fund a deal. I am working on being more open, breaking out of my shell and being more confident when talking to people because I know these are qualities of being a successful investor. So my question for today is... How do you properly ask someone, such as friend, for money to fund your deal? I've read in a previous blog post that you shouldn't just flat out ask for the money but instead start by asking if they know anyone who will be interesting in funding this type of deal. There is a duplex in Tampa that I am determined to make my first by and hold investment. I will live in one side and rent out the other but I am having a hard time finding the funding to make the purchase. The property is worth about 72k but he is asking 37k and he also sent me a repair estimate of 20k. I've called several banks but the loan amount is too small and other lenders said the repairs would have to be done first in order for me to receive the loan. I'm stuck right now but I don't want to give up on this deal, AND IM NOT!! My boyfriend has a friend who owns a few MF properties himself and is very wealthy. I was thinking about having my boyfriend ask him if he would be willing to fund the deal, But how do you start this type of conversation. What are things I can tell my boyfriend to say that will get him to possibly give us a 55K loan for this deal? I will offer to put a lien on the property for his loan amount and will offer a 10% down payment with 416.67 monthly payments for 10 years. I'm not going to mentioning interest rates unless he does (which I doubt he will). What do you guys think about this? Would you fund this if a friend brought this type of deal to you? What are the proper things to say to get him to feel comfortable with doing this?