How Do I Raise Capital?

[Daniel Saunders]

Hi All,

I currently have a hardmoney lender that has your typical rates but allows us to only put 10% down. With our current resources we can do about 4 flips at a time. The problem is that we lose other good deals while our cash in tied up in the rehabbing process and hold times.

My question is what have others done to raise more capital or free up cash? I currently draw my salary from the income, so of the profits go towards my salary which slows down my growth as well...

[David Dachtera]

@Daniel Saunders,

Get familiar with how to raise money from people with self-directed retirement accounts, or folks with retirement accounts who are looking for better returns with less volatility than the stock market.

By definition, private lenders are people with whom you have established a relationship before discussing money. So, no worries about "strangers" - you'll have filtered them out long before the subject of lending/borrowing comes up.