Wholesaling
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated over 7 years ago on . Most recent reply

How To Approach A Potential Private Lender.
Most Popular Reply

Prepare a comprehensive Proforma. Include not only financial data about the property, but include community information that shows the area to be solid. Have a written estimate for the rehab. Include comps that show you LTV will be no more than say, 65%. In other words, show the prospective lender that you know what you are doing. I never ask anyone to lend me money. The word lending has a negative connotation of possible loss. But, people do like to "invest". Therefore, I ask them if they would like to invest in my project. I present it as a mutually beneficial business dealing in which we both win. By the way, I have many owner financed and privately finance properties in my portfolio. I own three family with owner financing at 2% (the previous owner really wanted out!) and several between 5-6%.
Good luck!