Is not having financing in place killing your real estate venture? How many deals have you lost because you couldn’t fund the transaction? Are you frustrated and don’t know what to do, but you don’t want to give up on your real estate investment plan?
Maybe it’s time to consider private money. Many standard loans carry higher interest rates, points and a long term notes. With a private money loan you determine the terms of the agreement and based on your business model, you can create a request that fits your needs while showing a private lender a good return.
Your real estate investments can be single family homes, apartment buildings, condos, beach front homes or skyscrapers. As long as the private money lender sees a profit, the sky is the limit.
Where do you find private money lenders? Attend real estate investment meetings or join a group of local real estate investors who already have hard money lenders lined up to finance projects. This is a captured audience that wants to invest in real estate. They have the funds and want an investment that will be hands off for them.
Another source of finding private money lenders could be people you know. Maybe a family member or college friend, anyone that you have a relationship with can be a source for investment money. Then there are the people who are in the real estate industry or an associated field. Once you have established yourself as a worthy real estate investor, you will get recommendations from people you have worked with already. Word of mouth is the best referral any business can have.
Remember you want to educate potential investors about the investment opportunity you have to offer. You don’t want to ‘convince’ them or sell the idea, but educate them so they come to you to know more about real estate investment financing.