A private money lender is a non-institutional individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction. They are generally considered more relationship-based than hard money lenders. It is very common to find many new real estate investors spend a lot of time learning how to find deals at the expense of finding ways to raise money or equity capital from private money lenders. It is of great importance that investors start realizing that both finding deals and raising money for investment are equally important.
You cannot tie up or purchase a deal if you don’t have money. This is what it means to work smarter rather than harder. You will always be expected to place some good money as down payment for any property you wish to purchase. Raising even a hundred dollars to use for buying may be a problem especially if you are currently living on paycheck to paycheck. Investment success will come your way if you can work on ways of raising capital from private money lenders. Deal with no money is not an investment. In most cases you will find real estate investors spending a lot of time, hours, days or even months finding the next deal.
The next question is how can one find private money lenders? Simple, below are some of the ways to find private money lenders;
By running an ad in the papers as a way of advertising, e.g. like this;
Private Money Needed
Earn 14% plus 5 points
Rental, 70% Loan to value
$65,000 call ………………..(your phone number)
You may be shocked to receive many phone calls from different people willing to give you the money.
You can also look at your local newspapers to find lenders advertising availability of private money. Alternatively, make phone calls to several agents who work with investors or property owners. You can also ask escrow officers to tell you those who loan money privately.
It is also important to develop multiple lender sources. This is necessary even if you plan to use your own money. This may assist you especially in a situation where your funds are tied up and an opportunity arises with great deal in place. This will definitely lead to your success as an investor.
By using your family members, friends and even your relatives. Approach them with an opportunity that will make them earn higher yields in terms of interest on their money. Explain to them what you intend to do and I believe you will succeed.
Real estate investors and businessmen are also a source of private money. Build a good relationship with them. I believe they always have some additional money to lend out to other investors. They are very receptive to this because they know what it really means to invest in real estate; very comfortable with this industry as a whole. Apart from lending you money they will also give you some coaching on deal analysis and give you some tips that will make you grow as an investor.
Networking with other people especially at social networking sites. Share your business and experience with them and you will be surprised to find somebody willing to lend you money.
Make use of online databases. It is possible to the private money lenders in your area/locality. Take your time and compile a list of addresses and names of the private money lenders. Take your time and email them by informing them about your business. Don’t you think this can make you receive positive phone calls? Yes of course and you will not miss to get capital for your real estate deals.
To your Wealth!
Russell Roesner
Equity Coalition
www.equitycoalition.com
(415) 680 3454
You cannot tie up or purchase a deal if you don’t have money. This is what it means to work smarter rather than harder. You will always be expected to place some good money as down payment for any property you wish to purchase. Raising even a hundred dollars to use for buying may be a problem especially if you are currently living on paycheck to paycheck. Investment success will come your way if you can work on ways of raising capital from private money lenders. Deal with no money is not an investment. In most cases you will find real estate investors spending a lot of time, hours, days or even months finding the next deal.
The next question is how can one find private money lenders? Simple, below are some of the ways to find private money lenders;
