How do you get Private Money

Question

What are some of your guy's tactics to get private money?My only tactic so far is to ask relatives if they got some spare change lol. Of course, I want the benefit them as well.

Nicole Heasley Beitenman · Answer

The fact that you already have properties is a great asset. You're already an experienced investor. That's your path to starting a conversation--"I've done a few successful deal in the past, and I'm looking to grow more rapidly by partnering with an experienced lender." You're not asking for something. You're offering someone an opportunity to benefit from your deals. It's all about framing the conversation.

Cameron Braig · Answer

Local meetups, industry events and conferences and leveraging broker relationships. Best of luck in your fundraising.

Nicole Heasley Beitenman · Answer

I haven't read it, but I would imagine J and Carol Scott's The Book On Negotiating Real Estate would be helpful. They're talking about different kinds of conversations, but you may be able to take the principles and apply them to conversations with lenders. https://store.biggerpockets.co...

Fahadbin Alam · Answer

Wow, I actually never though of it as giving them a offer. I'm not gonna lie, I'm pretty bad with conversations lol. I feel as if I'm always trying to sell. Is there a book or a resource that builds valuable conversations? I'm trying to be a friend than a associate.

Richard Loniewski · Answer

Network, there are a lot of people out there with money. Just be careful of scammers anyone looking for upfront fees is a big giveaway

Rick Pozos · Answer

If they know you and like you AND you have done some deals in the past, they will be comfortable lending you money. I borrow from friends and family all the time. First and foremost they know what I do and have seen it on my personal and business Facebook pages. I post when I buy a property and when I sell one. Since I do rehabs I go live to show the construction at different points in the rehab. It kinda creates a little bit of buzz in my group of friends. My wife and I have little get togethers and we also go out to eat with lots of friends(the business always pays). The conversation always comes up about real estate. I just ask them if they know anyone who has a self directed ira or 401k money from a past job. OR I tell people, "Did you know that you can be the bank on real estate deals from your IRA??"

Talk about money with friends and family. Ask them how much they are making on their money. Get to know the people first, of course. Meet lots of people and ask them how you can help them in their business. When it comes up that they need to make a better return on their money, BAM. Let them know that you can pay 8% or 9% or whatever. Let them know how their money will be secured with the property.

Andy Webb · Answer

Network and share your track record.

Fahadbin Alam · Answer

I understand that you can just go up and ask, but how can you convince/allow the other person to trust you. Technically I'm just a random kid with some properties.

Charles Carillo · Answer

@Fahadbin Alam

Visit your local Real Estate meetups and you will find private lenders there or other investors that have private lender relationships. After you have done some deals; you can start talking to high-net-worth individuals about lending you money for your deals. When you "create" your own lender(s), this is where you will benefit from lower rates and minimal fees.

How do you get Private Money

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