How to find a local private investor?

Question

My partner and I are currently new investors stationed in Jacksonville NC. We have been doing an extensive amount of research into real estate and have been working with real estate agents and contractors. We are wondering how one comes to find a private investor? We understand hard money loans are out there but we are both the type of people who would rather work with an individual rather than a company. Any insight or advice would be much appreciated.

Respectfully

Kevin Le

Respectfully

Kevin Le

Daniel Haberkost · Answer

@Kevin Le there are plenty of individual hard money lenders in my market that lend their own money, I’m sure there are some in yours too. That would solve your problem of wanting to work with an individual.

They’re very useful as they will analyze the deal with you and tell you whether the numbers make sense.

Trying to find a private lender (that isn’t a friend or family member) with no experience and no capital is going to be very difficult. It’s not impossible but if you want to go that route you’re going to need to find an extremely good deal.

Start networking and making contacts so when you do have an undervalued deal you have people to call.

Rick Pozos · Answer

Find a great deal first. Start marketing to potentially distressed sellers. When you find a GREAT deal, start telling all your real estate friends that you know from when the REIAs were open. If you dont know anyone, you are way behind. You should know lots of people already who are flippers, landlords, note buyers, etc in your area. You have to know people when you go into business. AND this is a business. All businesses need marketing, networking AND money. If you dont have all of those already going on, its not going to happen.

Let me see if I can rephrase what you are really asking. You want someone who you might or might not know very well to lend you 100% on a rehab project, when you have never done a rehab project before??

You gotta have some cash, at least 10k and maybe even about 10k worth of credit cards just in case. This is going to have to be a very close friend or relative who knows you and trusts you, because No One personally is going to lend you 100% with no experience and only knows you online. Dont get scammed when someone says that they will lend you the money, just send $500 and you are prequalified.

But let me answer your real question: how to find private lenders. You do a successful rehab project. You post it on facebook, linkedin, and all the other social media places. You do another one and another one. When you talk about your success, people will want to share your success. Pay the higher hard money right now, and build a track record. If it was really that easy to find private money, I would have 1000 houses with private loans at 3%. If paying 12% and 3 points is going to kill your deal, its not a deal to begin with. Pay the higher cost to get started and be able to show your friends and family how well you have done.

Anthony Dadlani · Answer

@Kevin Le

I think most investors appreciate a willingness to work hard as well as some small skin in the game to show you are serious.  Best of luck in all your endeavors.

Michael Ablan · Answer

@Kevin Le -  Sphere of influence will be your best bet

Talk to any higher earner you know and ask if they'd be interested in putting their money to work.

Kevin Le · Answer

@Emily Howlett we are new investors now with very little capital. Which is why we were looking for 90-100% financing and we would be open to the higher interest rate.

Emily Howlett · Answer

@Kevin Le and how much are you hoping to find from an investor vs your own money? And what’s your track record?

Kevin Le · Answer

@Emily Howlett thank you so much! I am currently looking at single family homes in the local area ranging anywhere from 70k-100k with light to medium rehab costs.

Emily Howlett · Answer

@Kevin Le it may help to mention how much you are hoping for this private investor to invest, for how long, etc. Everyone has a network, and the more you can narrow down what you’re looking for, the easier it is for people to find the right person to connect you

How to find a local private investor?

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