Finding Private Money vs. Hard Money Lenders In North Dakota

16 Replies

BP family, I am a new investor in the Grand Forks North Dakota area and am wondering what type of rates to expect and or offer when looking to gain Private money.  Additionally, what are your experiences with finding Private Money vs. Hard Money Lenders In North Dakota.

@Jeff Rabinowitz true, but most HMLs dont play in ND. Not sure if its a regulation issue or what it is, but I've only been able to even entertain the idea of doing business with HMLs on the MN side of the border. 

I contacted dwell finance. I probably going to use them for equity financing on a rental property that is paid for. Take some equity out and buy 3 more that cash flow they carry all the loans.  I don't know what your situation is but I just go laid off so I can't used traditional financing that uses my personal income in the decision. jh

Everyone, thanks for your replies.  

@Jeff Rabinowitz  you say that private lenders are everywhere. What has succeeded for you in finding them?

@Dustin Smith What success have you found for funding - how are you getting deals done?

@John Hand - Dwell Financing - looks very interesting I will look deeper into them.  What is your experience with them?  How are they doing for you?

Tell everyone you meet what you do and how they can participate. Be honest. If you have a poor deal be forthright about it but make sure you don't repeat that mistake so you can share a learning experience. Protect any current investors at all costs. If you make a mistake bear the costs of that mistake and make your investors whole. That will keep them coming back and they will bring their contacts. Most people who have funds to lend know many others who also have funds to lend. Most people who have funds to lend also have considerably more than they will disclose when they do their first deal with you.

@Glenn D. I actually never went through with the financing as I decided not to pursue any rehabs, which is where hard money is most useful. Other than that, just using bank financing. Private money is so much easier to come by when you have a record to prove your abilities as an investor. 

@Glenn D. I'm in the small multifamily market. Right now my wife and I are working on finding a triplex or quad to buy on FHA financing and renting out the available units. Not sure how much you know about FHA or if its something that you'd even be interested in, but for the cash strapped investor its an awesome way to get in the game.

In my world private/ hard money are the same. I personally do not like saying hard money as it has real negativity associated with the word. The simple truth is that  private funds come from  trust deed investors placing it in other people's real estate. It will always yield higher than a bank and is for the most part helpful to many investors allowing the leverage they need to succeed.

Hard money and true private money is not the same thing.  Many hard money lenders, including the one I have money invested with, use the term "private money".  Like @Jo-Ann Lapin says, "hard money" has negative connotations, so HMLs like to use "private money" instead.  And, their money does indeed come from private individuals.

True private money, which is what most folks who post here asking for private money mean, is an individual you know personally who's willing to invest in you. You're dealing with a person, not a company. Typically, the rate is going to be a bit lower than a HML. Which is really the goal, I think. When I see some asking for a private lender, I think they typically mean, "I need a lender with hard money terms, but a better rate".

Someone here on BP had previously mentioned this might find it helpful (I have not used any of these sources personally)...

"If you're interested in the crowdfunding route, the top ranked sites that focus mostly on hard money loans are: Patch of Land, Peerstreet & Peerrealty. "

Good luck!