Private money is a win win. Why I will continue to use Private money.

   I have been flipping properties professionally for more than 2 years now.  I have learned many lessons over these past years, and today I would like to share my thoughts about private lending.  A friend had some money ($100,000) to lend on a property.  He wanted to make some great returns, and I wanted to try growing into multiple flips at once.  I purchased a property from a local wholesaler for $140,000.00 and used the $100,000.00 from my friend.  I later sold this property for $224,000 with around $30,000 in rehab.

    I kept enough money in my bank to purchase a second property a week later.  This allowed me to make more money than if I had only done one with my own money.  I am excited about the possibility of using more private funds, as there really is no limit to the amount of properties I can flip at one time.  

    While I had the benefit of doing more flips at a time then I could personally afford, my friend made $10,000.00 in 6 months for letting me use his money.  That is some amazing returns for him, and I made good money as well.

    My suggestion to those who are flipping with their own money is to start looking for friends and family interested in funding their flips.  The money is far better than they can make anywhere else.  On the flip side (no pun intended)  If you want to get into the Real Estate game and have enough money to fund a deal but don't particularly enjoy the stresses of managing a rehab, I suggest you go to your local REIA and look for someone you can partner with.  You may even look on Bigger Pockets to find someone worth investing in.

Good Luck!