Where would I find private funding ?

[Roy Conney]

Looking for Private funding. How do I know if a person is legit? What questions should I be asking?

[Aaron Byrne]

Private lenders are just that--private. They often do not advertise themselves so you would need to get connected to them via word-of-mouth or some other similar form of communication like an investment group setting. If I was talking to a private lender trying to see if they are legit, I would ask them about their processes (do you record a lien, do you require a personal guarantee, what are your rates, do you work through escrow, what is your lending criteria, etc.) and ask for examples of past deals they lent on or references to people they worked with before. If not buttoned up, I would consider it a red flag that they are at least a bit green or at the worst not legit.

On the flip side, hard money lenders are easier to find as they likely have a website, offices, etc. Depending on your deal, a HML may be able to provide the assistance you need since they typically have greater access to capital and a team behind them. If you have not looked at any before, a few to start with are Anchor, Civic, and the firm I work for to name a few. There are plenty out there so be sure to take your time to conduct due diligence.

Good luck!