PRIVATE LENDERS DO THEY EXIST?
One of the biggest questions in real estate investing is How Do I get private Lenders?, I need funding for my deal , how can I get started in Real estate with no Private Lenders, ETC. For some people they might have associates, friends and family members who have money in retirement accounts. Thats Great I even know a few people here in my Great City of Charlotte who was able to start like that. Now for the rest of us the most simple way for you to get money is put your head down and work. Thats right I hate to be the barrel of bad news but in order to obtain private money you must prove your self first. All the real Hard money lenders in my market who actually lend based on the deal. Have a very small network of people they actually lend too. Yes they might advertise to anyone but only the experienced folks get their money every time. I have been blessed to hear conversations from the GOOD OLE boy club.
Does that mean you should give up. Absolutely not it does mean you should get to work. So if you are a wholesaler get good at finding deals, if you are rehabber get good at fix & flipping and if you are land lord get good at finding deal with high rate of returns and of course land lord managing the asset if you will not out source that. I know some of you will say how can I get good at rehabbing if I do not have the Private Money. You will have to start from the bottom like anything else in life. So the guys in your market who may be lending with a down payment , crazy amount of points and higher interest rate you may have to go through that person to build your resume. You can always do what I did and that find a successful rehabber and partner with him. You an structure the deal anyway you feel comfortable with. I decided to do a 50/50 split on the back end. Sometimes we have to give up what we have to get what we want. Now not every investor will be so nice to do 50/50 but remember you are sacrificing up front to get the future you want.
In conclusion I know a few guys in my market with millions in private money. They all told me the secret and its success. They advised me that they did not get people willing to lend so much until they became successful or had some success. Think about it would you lend your hard earned money to someone who you did not know if they were going to be able to pay you back, Probably not. Its a reason traditional banks dont lend to start up. Most people wont and cant take a 99 dollar MLM investment serious. Why on earth would you trust this person with 75k for a business? As in any business things dont go as planned so some had to be the leader and step up in straighten things out. So when you lend to trusted folks you have a least chance as the private lender getting that sob story.
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