For real estate investing to pay off big it requires money that is equally as big. This sometimes can become a road block that will stop many real estate investors. When the only thing that is standing between you and a real estate deal is money, consider a private lender. There are many private money lenders out there. You just have to know where to look for them and how to sell them on your investment.
Private money is a quick way for real estate investors to acquire the money for real estate deals. Private money lending is the way to go for those searching a financing option that will allow them to purchase, rehab and resell properties. The lending criteria will be looser with private money lenders than with standard financial institutions.
Private lenders main concern is how you will pay the money back and what can they expect from their investment in the way of profits. When you have equity in the property with a solid plan set to pay back the loan, you will have a better chance of being approved for a private money loan. There are private investors who are eager to get into the real estate market but lack of knowledge keeps them from pursuing that direction.
To start your search for private lenders ask a mortgage consultant. Since they're already in the industry they will connections to private money. Find a real estate investment club (REI) for another possible source. You can also find private money from friends, family members, colleagues, or from business contacts and acquaintances.
Private lenders can come from all walks of life. Inquire with portfolio lenders, real estate brokers, REO agents as well as institutional investors. Once you find a private lender you should keep their info on hand, who knows when you might need it, right? Having more than one in your rolodex can’t hurt either.
Once you have identified these people, how to approach them is a developed but necessary skill. You don’t have to be charismatic. Just knowing what to say and having the skills to make a presentation is all you need to get this venture going.
Remember, you the investor does not necessarily need to have any money to your name when you have the skills needed that brings together a successful, profitable sale that makes money for others that have money but not the skills you have.
Raising money to fund your real estate investments allows you to move forward down the road of financial independence. Along the way you not only can increase the wealth for private investors, but create a name for yourself. Your job finding future opportunities will get easier as you go. Learn a few skills and make a lot of money, not bad huh?