A Private Money Lender is a person who uses the capital they have to finance investments. The goal of a private lender is to increase their capital by getting profits and interest from lending. These are individual investors that are not associated with a financial institution. Private lenders can be very helpful to funding real estate investments.
Benefits of Private Lenders = they work at a fast pass and are more flexible with their requirements.
To Find Investors:
Build a network. Compile a list of all the real estate agents, title company representatives, and attorneys in your area. Secondly, compile a list of your friends, family and personal contacts that you have. This is your network to get you started. Now build relationships with these people and keep them informed of your investment opportunities. This is how you start from this list you will be able to find private money lenders. If not one of these people someone they know.
Use the internet. Search engines can be your friend. There are online sources that connect those with money to those that need money for investment. You can also search for local real estate investor meet-ups in your area for you to attend.
Cold calls. After you obtain a list of lenders get on the phone and start calling. Lay out the deal and try to obtain a meeting.
Direct mail marketing. Use the postal service. This is a less personal approach, over phoning, but it can lead to interest in your investment opportunity. The list of potential lenders is a critical part of this operation for success.
How private lenders help you get ahead in commercial real estate! Great #Ironclad
- 1Private lenders are an option for real estate investment and they are not affiliated with any bank or financial institution.
- 2Remember when approaching a private lender that there is risk and benefit for both of you.
- 3The ultimate goal should be to find a private lender with whom you can have a long term business relationship.
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