How to find private money

[Nathan Crowson]

Hi I'm new to the investing part of real estate. I've been apart of flips before but just as a contractor. I was wondering were do people get private money. I keep hearing if you have a great deal the money will find you. I don't know if it's just me or what but I can't seem to get it to make sense to me because how are you suppose to find a deal with no money? If anyone could help me it would be greatly appreciated!

[Bill Gulley]

Well, that needs to be revised!

Private lenders are absolutely individuals and not companies in the business of lending money. Your family, a friend, you doctor, your lawyer, your barber, your stock broker, your insurance agent......they may lend you the money but they are NOT in the business of lending money. 

This definition comes from exemptions from lender registration requirements and security and exchange regulations, it doesn't poof out of a cloud. Those in the business of lending their own money argue as if the source of funds makes a difference, it does not. If someone advertises to make loans, they are in the business and are not exempt private lenders. 

So, where do you find such friends? By telling others about what you do.....tactfully! :)