Finding Private Money Lenders

[Kurtis Montgomery]

Hello all,

I started my education in September of 2015, concreted my niche as a flipper, leveraging that profit with dreams of owning 300 doors (single and small multifamily) in and around Chattanooga, Tennessee.  I found BiggerPockets.com podcasts and instantly fell in love/obsession.  I practically stopped listening to music and television all together.  Around the same time I quit my job as a Project Manager for a residential construction company.  I kept getting talked into taking PM jobs at startup construction companies every couple of years, and I couldn't deal with the weight of building someone else's company without getting any of the perks and all of the stress.  

Through the past 8 years I spent 4 in residential construction, so i've been rehabbing for investors the entire time, watching good deal after good deal, and my boss smiling as he stretched me as thin as he could. See this was where I can say I was in desperation mode. When I get in this mode (which thankfully is few and far between) I eat, sleep, and breathe everything there is to do with the topic until I think I have a good enough understanding to talk with the smartest on the topic. Since September I've read over 50 of the self-taught, self-motivation, just about every book that has been in the final four of the podcasts or recommended resource books on the site, I've read. My education is where it needs to be. So I started analyzing, driving for dollars, going to REIA meetings, networking, poking, prying myself into conversations, analyzing, analyzing, analyzing.

I have recently started emailing out 5 and 6 page takeoffs of my favorite 6 opportunities.  All but 2 of these properties are pocket listings I've received from other investors or my agent/best friend.  Networking event after event, rich friend after rich friend, everyone is interested but are not pulling the trigger.  I need some help.  I know what I am doing and have been in much smaller time crunches and done a lot more trades in the short amount of time.  My deals are appealing, with equity ranging from $30k-$104K, and I'm looking for private money ranging from $42k on up to $200K (My favorite and most profitable is in the $42k and I already have the hard money 75%, I just need the DP 25%).  I have previously done 3 rehabs at a time with 3 different crews, I have the manpower and the knowhow, just not the knowledge of raising capital.  I know the construction side in and out, but the raising money part I am at infancy stage.  I am looking for partners, short or long term, someone that knows or has the money we would use. Do I need a mentor or do I just need to make some brag sheets of deals I've done the construction for.  I'm looking to start my first flip, and believe me it's not analysis paralysis, i've jumped off the diving board and have been in the cannonball position ready to make a splash.

[Jay Hinrichs]

@Kurtis Montgomery what your asking for is not a private lender but an equity partner or gap funder. most anyone with any experience is not going to go behind a HML as their funds are in jeopardy of being wiped out.. at least not to make it even remotely interesting to a Private lender to make 8 to 10% interest in such a precarious situation.. now you might find the PML who fell of the turnip truck.. but anyone with any experience wont do this

I would recommend you recalibrate and look for that equity partner.. share the wealth until you have enough capital to do these yourself.

If you don't have 20 to 40k of your own money by now then you need to earn it and save up.

Like I said you may stumble into someone who does not know what they are doing.. but find that local guy create a relationship make them some real money it will serve you far better in the long run.. trust me on this