Private money

4 Replies

Hello, My partners and I have a meeting with a private money lender tomorrow. He is a friend of one of my partners. I think it will work out but I want to make sure it will happen. I want to put together a packet that will make him feel good about giving us a large sum of money. This will be our first time flipping a house and we don't have a specific property yet. I was thinking of include a mock property to give him an idea of what the numbers will look like and a business plan. Any suggestions? I really don't want to mess this up.

@Richard Renson

Showing numbers and nearby comps is a must for most private lenders. I think what people underestimate is being organized. Don't just throw a stack of papers at him, give him some nice, quick takeaways that he can reference later.

Before doing any investment deal (private investment or otherwise) I always have to talk it over with my wife. If I was the only one at the meeting, how am I going to explain it to her? 

That's the person you should be optimizing for. Make it neat, keep it succinct, make sure the sources are referenced and verified.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you