How to Win Over Private Money Lenders or Partners for Your Deals

by | BiggerPockets.com

For those of you who have not worked with private lenders or equity partners in the past, know that at some point you will need to go this route if you plan to expand your business. If you have worked with these investors in the past, you know realize it’s very important to ask the right questions up front to better understand that investor and how to best structure a win/win situation with them!

Related: How I Find Private Money Lenders to 100% Fund My Deals (& How You Can, Too)

It can be tempting to talk about the great deals you have lined up, your rate of returns, or your company’s track record when you speak with a new investor. Before you get into anything about yourself, you need to take some time to get to know your investor. In this video, I discuss three important questions you have to ask to really get to know your potential private money lender or partner.

Please leave a comment and share a story you have about understanding investors needs.

Thanks for watching!

About Author

Matt Faircloth

In 2005, Matt founded The DeRosa Group along with his wife, Elizabeth. At the time, the two person company owned and managed two assets – a single family home and a duplex. Over the last nine years, they have grown the company to a 12 person team owning and managing over five million dollars in residential and commercial assets throughout the central NJ and Philadelphia area. One of DeRosa’s mantras is “to make money while making a difference.”

4 Comments

    • Matt Faircloth

      Hey Caroline,

      Thanks for the comment! You don’t get off that easy though, lol! Tell us all more! What is the project, target amount to raise, projected return? What do you plan to offer investors? How are you going to structure your approach to your investors?
      I am hoping we can use your case as a learning for others, if you don’t mind me picking on you a bit, ha ha.

      Thanks!

      Matt

  1. Gloria Dulan-Wilson

    Thanks so much for that insight and information. I am somewhat intimidated by this process – even though I’ve gotten funding for the renovation of properties before, it was through the Non-profit organization I headed in Brooklyn. It’s different when it’s for your own project – and I admit I am nervous because I do have some potentially good deals that I am looking at. I am going to watch your video again – I really appreciate your candor.

    • Matt Faircloth

      Hey Gloria,
      Glad you enjoyed! Although it is different from an emotional and priority perspective, it’s the same when it comes to dollars and cents. Try pitching the deal to a few people as preparation to sit infront of a key lender or partner. That way you can get warmed up and perhaps get some feedback before you go for the real meeting with the lender.
      Good luck!
      Matt

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