Finding Private Money for Great Real Estate Deals June 29, 2008
Posted by bobleonetti in Private Money, Real Estate, Real Estate Funding, Uncategorized.Tags: Private Money, Real Estate, Real Estate Finance, Real Estate Funding
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In reviewing a recent survey that I sent out to my students, I wasn’t surprised at all that funding a good deal is one of their top three concerns (the others being finding a good deal and selling it in today’s market).
There are lots of ways to fund your deals – I’ve listed below some of the techniques that I’ve used to find private money. And remember, there are always friends and relatives who are earning a paltry return with their banks who would LOVE to get a higher return by investing in Real Estate backed paper. Better yet – for a lot more content, visit my website at www.realestateprofitcoach.com
Specifically, try the following:
1. Go to your local RE Investment clubs and ask around – most hard money lenders will be soliciting their wares saying, “Use my money!!” And most likely, they’ll be the ones sponsoring the meeting (check near the punch and cookies in the back of the room)!
2. You should also be networking w/ other investors in your area to see who they use – that’s actually the best way to find local investors.
3. Check the Internet and the Yellow Pages for lenders.
4. Check the Scotsman Guide for a list of hard-money lenders nationwide. They’ll be a bit more expensive that local private lenders. Find them at www.scotsmanguide.com.
5. Advertise on Craigslist that you have a mortgage for sale ($120K, 12% mortgage secured by 1st lien on local real estate). When you get calls, tell them that you sold that mortgage but…you have another. The “other” one is going to be the one you create to buy the property.
BTW – I’m bringing in a private-lender to my upcoming Financial Mastery workshop in Las Vegas on July 10. She’ll share with you her techniques on how she acquires money to loan to others. The best part is…she isn’t selling anything!!! <grin>
Thank you so much for this blog! As an investor in Austin Real Estate hearing about private-lenders is always a good thing. Another hard money lender in Austin folks may want to know about is http://www.mananafunding.com Thanks again for your insight! Keep up the good work!
~ENaylor
Hi Bob,
Great blog here! We really need more folks letting people know about private money. I think hard money is a joke now! They make you jump through so many hoops. I had to put down 5,000.00 in order to secure $500,000. I thought that was good until I raised $1,000,000.00 in less than 4 months. No more junk fees, or jumping through hoops anymore. My private lenders get 10-12% depending on if i repay quarterly or if we accrue. I’ sure glad Private Money was introduced to me by my mentor Alan Cowgill. I am the president of fairfield county REIA in CT. If anyone needs support email me at cljones2008@gmail.com We give loans also.
I’d love to team up with you for a power packed educational series for both of our students Bob.
cljonesdm.com