what to expect from privet lenders

Question

Hello.

I am new to bigger pockets and am just starting out in buy and hold. I have worked out a great business plan that i feel if flawless. I am looking at purchasing up to 9 homes and will also be needing up to $100,000 for a buffer. We are looking for a total investment of $1,000,000,00 for 13 to 15 years and depending on the deal are prepared to go upwards as 10% to the lender. my problem is I can't get anyone to take a meeting with me. what should I do? what are privet lenders looking for?

thanks

Dan

Rick Pozos · Answer

Free advice is just that, free. You didnt pay for it so maybe that is how much it is worth. OR it could be the best advice of your life, for free.Keep doing your business because that is how you pay the bills. If you get really good at your business you should be making plenty of money. Live below your means. This way you can build capital for you business AND for your real estate.If you are doing a deal right now, finish it. Sell it and put that money into the next deal. Talk with other investors who have done the same thing and learn from them. Also, give back to the group and let them know what you have learned in your experience. Find others who will help you and that you can help. That is how you will learn and become a greater person.Dont worry about millions right now. Be great at what you do and the money will find you. If the money is not finding you, you are not great yet. Keep on keeping on, as Joe Dirt would say.

Account Closed · Answer

I would be looking for a track record for starters. Have you risked your own money and have you been successful. How you are with your own money tells me something about what you would do with my money. Are you wanting all this funding right now?

Mindy Jensen · Answer

@Dan Deschamp , did I read your number correctly? You are looking for $1 Billion for 15 years?Unless you have a spectacular track record, you are not going to be able to find someone to give you that kind of money. Private Lenders are people you know, or 1-2 levels of separation like your Uncle's boss. While they may have some secret wealth, it's hard to find someone with 1 billion secret dollars. You'd have to get a group of people together to raise this kind of cash.There are SEC rules regarding soliciting money for investments - I don't know them because I don't solicit large amounts for my investing. I know there is something about them being known to you instead of soliciting random strangers.If you meant to say $1 million, you're going to have a MUCH easier time finding loans, but if you have no skin in the game or no experience or both, that's also going to be a difficult sell.

Dan Deschamp · Answer

No it's 1 million. I see the typo now that you mention it. Thank you for pointing that out

Dan Deschamp · Answer

Part of the reason I'm looking for a private lender is so there would be easier access to money as houses or condos come available in the areas I am looking. I own a carpet cleaning business of four years and we started the Vinyl business two years ago. I don't have a whole lot of money available. I'm using my credit and what money I have in savings as the down payment on a 100,000 condo And plan on making that a rental. I have a lot of experience through the years working in houses like this with my dad being a property manager and realtor as I was growing up. Helping with small repairs putting in new appliances. I've done lots of research of companies that can help with my projects during rehab. and I also know lots of handyman electricians plumbers and contractors I have worked alongside with doing work in People's homes. All who have personally takin an interest in my project and are ready to help out with anything I need when I hit the ground running. Another reason I am seeking private lenders is because I want to keep my personal credit open to continue to help my carpet cleaning business and vinyl business grow. I am also using my credit to purchase the $100,0000 condo as a rental. We are in the stages of developing our credit for the carpet cleaning business Sollee. But the vinyl business has yet to qualify for even a credit card. I have lived in my house for 10 years as a renter. It's a 2000 square-foot comfortable home with three bedrooms a large rec room and a nice living room two car garage and could use about $10,000 in repairs. I came to the decision of purchasing the home because I want to fix it up and make it nice. My landlord is not doing that, so I'm currently working out a deal with my landlord on an owner finance for the home. Unfortunately I don't have much of a track Record other than resume of a 13 year career in hotels and hotel management. And what I've been doing since I started my businesses. I'm not real sure how to move forward from here in finding a trustworthy private lender. The only thing I can think of is offering a higher interest-rate too a Lender that may be willing to work on this project. But then again having no experience doing this yet I'm not sure if a higher interest-rate is a smart way to go. I've come to this social media site in hopes of getting recommendations on how I can get into this business under these circumstances and the way I wish to approach the project. I know 10% is a lot of money to be offering if that was to work. But with my work ethic and drive I know I can turn something like this into a major amount of money over time for myself so I don't necessarily think higher interest-rate's are a bad thing when you're starting out. I'm starting with nothing anyway