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Updated almost 9 years ago on . Most recent reply

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Sebastian Marroquin
  • Real Estate Agent
  • Pasadena, CA
263
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469
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Whats the best avenue to securing private money?

Sebastian Marroquin
  • Real Estate Agent
  • Pasadena, CA
Posted

Whats the best way to acquire private money at 8% to 12% short term loans (6 to 12 months) 

  • Sebastian Marroquin
  • Most Popular Reply

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    Jeff S.#5 Private Lending & Conventional Mortgage Advice Contributor
    • Lender
    • Los Angeles, CA
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    Jeff S.#5 Private Lending & Conventional Mortgage Advice Contributor
    • Lender
    • Los Angeles, CA
    Replied

    Face-to-face is the best avenue, @Sebastian Marroquin.  As I'm sure you know, this is a business based on relationships. You'll find the greatest concentration of willing lenders, large and small at some of the local real estate clubs. These provide a neutral venue and tend to attract those that are serious about lending their money, enabling you to avoid others with cold-feet at the last minute.

    Rates are obviously important, no doubt. But so are terms. It might be worth a point or percent for a higher LTV loan or to be able to pay everything when the property sells, thereby preserving working capital. In addition, working with someone you've formed even a basic relationship with might make it easier to obtain a loan extension or other accommodation sometime in the future, if you run into problems. Also, frankly, local lenders will likely be cheaper since they know the prevailing rates and the areas.

    Meetup.com is a good way to find local real estate clubs. Here's a Link. In your area, I particularly like the FIBI Pasadena club as well as the LAREIA in Arcadia, but there are many others slightly further from you including FIBI Manhattan Beach and FIBI Long Beach, which are also good and with no sales pitches allowed whatsoever. Good luck, Sebastian.

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