In need of a private lender

[Brittany Trevino]

Hey Everyone!

I had an investor that was serious until it was time to make the transaction. They don't actually have the capital they claimed they had. 

1) How often has this happened to y'all and what have you done to prevent it?

2) I'm new to private lending and I'm having a hard time finding a private lender. 

Everyone says to network and I agree but lack creative ways to meet people. I am new to the area and my first meet up here isn't until next week.

What are some creative ways you found lenders or partners?

[Caroline Gerardo]

The answer is in the granular details: what is your income/assets/credit/property type/ expectations of value and cost/ STR or market/down payment/ what is your palate for risk/ have you had forbearance/ time frame you need the loan/ and most important: exit strategy. Hard money should be able to give you an answer in five days and close in twelve.

Not sure what your definition of private money is, as it is not a term I would use, not a real category of lender type. I think you mean hard money

1. Have a protocol for your application process: a) call and tell all the exact information above b) ask them is this location something they desire (most won't mess with small loans or remote locations there is no juice in squeezing a foreclosure c) ask for closed referrals and verify with your title rep d) calculate the total costs and expect more not less at closing.

2. Work on improving your profile: increase income on IRS returns, increase savings, improve FICO, stabilize your future, gain skills by working for a mentor a contractor a finance person..., get yourself in perfect ready state, keep a ring binder notebook, have everyone's phone in your contacts, ask for help

3. If company has no license and no referrals I would not apply

4. ask questions, don't pay for classes, read everything, know that numbers are reality and probably yours are going to be hit by the many unforeseen details: contractor dies on site (happened to me); lender lost warehouse line in May due to covid (happened) and even Goldman closed shop; supply chain delays and increased costs; tenant whose income never went down decided not to pay for a year or two and refused to work with government payments... stuff always happens

5. There are about 1000 good hard money lenders most stay close to home. There are now about 800 good NONQM lenders they only lend where they are licensed. There are about 340 new Fintech variations of how to break into this vast market with all kinds of twists. Call a few. Sign up for their emails and read what they offer. Get your quiver with: lenders who answer the phone, a nationwide title rep, a nationwide insurance agent, contractors and handymenpersons in the city you target, suppliers, a place to securely store your supplies, CPA, and so forth.  I believe people are basically good, find them.