Private money lenders

[Brandi Brockman]

Hi, I am a new investor that's identified a private money lender. Being new I'm not sure the best way to approach them. I know I need to be prepared, so I started by asking about the areas they like to invest in and their rates/terms. Where should I go from here? Appreciate any input!

[Matt B.]

Is the person someone who already does lending or someone that doesn't, but has cash and would lend to you? The former you probably have to deal with their rates and terms. With the latter you can create the rates and terms.

Either way you probably need to have your strategy figured out before you approach them. Let them know what you are investing in, what it is going to cost, how long it will take and what your exit strategy is to repay them. They probably will want to know what can go wrong and what you are going to do so that it doesn't.

A 1-3 page executive summary highlighting the key elements of yourself and your deal or deals may be beneficial. Much success to you.