In search of private lender

[Bianca Rodrigues]

I’ve identified a few properties that would be great potential flips. I have the team and manpower to get the job done. Now, I’m in search of a private money lender to help fund the deal.

I’ve been getting emails from individuals claiming to be private money lenders that offer 100% financing at 4%. What are some red flags that I should be cautious of when receiving these emails to avoid any scammers?

Also, is it unheard of for a private money lender to fund 100% of purchase and 100% of rehab cost?

Thank you!

[Scott E.]

100% financing at 4% is for sure a scam.

Also the fact that you are getting emails from random people claiming to be private money lenders, is another scam indicator.

You need to seek out private money, they don't go out seeking you.

All of the private money I've raised over the years has been through talking with friends, contractors, real estate agents, family, etc. You'd be surprised how many people know somebody who has money they would be willing to invest.

If you find somebody who believes in you, 100% financing is definitely possible. You are just going to need to give them a preferred return on their money PLUS a hefty cut of the profits when you sell. But as they say, you getting a 50% cut of a deal is better than getting a 0% cut of no deal.