Private and Hard Money as a Newbie

[Kris Laku]

Hey BP members! I’ve had a few questions on the route i’m looking to take in terms of real estate investing.

I’ve been into real estate and have been in the learning phase for a while but i’ve been taking more action recently in looking for deals and getting deep into networking. I’m trying to take the private and hard money approach to real estate, as the idea of being able to leverage and build a network around you of like minded investors peaks my interest the most. The different ideas of creative financing are all so interesting to me, and hearing how people are doing it makes me want to get out there!

When it comes to private and hard money, should I have an LLC before I try to lock down my first deal? I have some people around me who have real estate knowledge tell me that i'm not quite there yet, but if I have to be prepared to go down the path I want to go down, I have no issues forming an LLC if it'll get me that one step closer.

How should I structure contracts with lenders in order to keep it fair for all parties involved? Are there specific things I should know in terms of long term investments, and even short term like flips, that I should know before trying to put something together?

If anyone has advice on taking this approach at this point and time i’d love any input. I know this is a different approach compared to maybe saving money over time to invest or, even something wholesaling or flipping. But to me it’s been the thing thats got me to take the most action and even put myself out here on places like BP.

Finally, I live in Litchfield country in CT, so if any investors (new or seasoned), would like to reach out please do as I always love talking and networking.

Thanks for any and all advice!