Looking for Private Money? Here's How I Found Mine.

[Account Closed]

I started investing in 2006 with no money, bad credit, & no car.

I had no reason to believe I could succeed.  Through luck, I found myself attending paid seminars and receiving top notch education about the business of real estate investing.

Armed with nothing more than REAL WORLD KNOWLEDGE, I set out to begin my new career as a real estate investor-from my mom's house where I was living.

I desperately wanted to flip houses and I tried raising money first.  Big mistake.  Everyone said "NO" because I was inexperienced and no one knew if I could succeed.

I tried a few other things and finally had some progress when I wholesaled my first deal and made $6,000.  I made that deal directly with a seller-who found me in a $79 newspaper ad which I placed for 7 days.

That ad produced a few more wholesale deals and people began taking me seriously in the business.  I began to get a good reputation as a source of Off Market Deals.

On the 5th deal I decided that I wanted to close & resell the house at a purchase price of $117,500.  I didn't have that kind of money, but I did have the attention of another wealthier, more experienced investor.  I brought the deal to him.

When I proposed that we should purchase & resell the deal for a profit, he said, "Why don't we just assign this and make $10,000 real quick?"

To which I replied, "I don't need you to assign this deal, I need you to bring the cash so we can close on it, mop the floors, clean out the trash, and resell it for $160,000!  Then we make $40,000 and split THAT profit 50/50"

We subsequently did exactly that and split $38,000 after all costs.  It was a good deal and I was flipping houses.

On my 6th deal, that same investor lent me the funding at 15% interest APR to close on and complete my first fix & flip deal. I still do business with this investor on a regular basis.

When I received that private money, he never did a credit check.  He looked at the deal and gave me the green light.  

THE REASON THIS PRIVATE LENDER FUNDED MY DEAL WAS THE RELATIONSHIP I BUILT WITH HIM.

I built that relationship by calling him first with every Off Market Deal that I dug up.  My 3rd wholesale deal was one where this investor/private lender and I split a $16,000 assignment 50/50.  My 4th deal was a "fix & flip" I assigned to him for a fee of $13,500.  The 5th was the one we closed on with his money.  We shared a few deals where we were both making decent profits BEFORE I ever asked for the money.

If you're interested in finding private money, ask yourself

"HOW CAN I BRING VALUE TO THE TABLE FOR THE LENDER?

For me, the resounding answer to that question is and has always been to BE A SOURCE OF REAL, PROFITABLE REAL ESTATE DEALS.

[Brian Gibbons]

Daniel, thats a great story

Rehabbers and flippers need to be able to price the job so that there is enough profit for all, with her using a hard money lender or pleasing a private lender

BP offers a book on pricing rehabs, search

"j scott rehab book"

Wholesalers need to interview flippers so they know exactly what the flipper wants. There are plenty of articles on BP about what flippers don't like about some wholesalers that don't have the skill sets of pricing a job