Finding Private Lender

[Kimberly Arington]

Hello everyone, I have to start somewhere. I have a duplex that was passed down to me from my dad. I have that up and going, now Im interested into buying a multifamily unit. I've attended REIA events and other meetups in person and online. Have another event on Saturday but I never can run across any private lenders. Seem like everyone is starting off like myself at these events. Could anyone point me in the right direction to where I have not been seeking. I have multifamily deals given to me daily!!! No assistance with funding so I end up losing out. So are there any other locations to seek private lenders?

[Ryan Lockstein]

So I'm going to answer your question based on my experience.  I'm sure there are better ways but here is how I did it.

On my first rehab deals I used HARD MONEY.  I know it is not quite as cool and attractive as PRIVATE MONEY but easier to find and get for your first/second deal.  The underwriting for hard money is kind of a pain and the terms vary a lot but you do what you have to do to make it work.  Once you have done a couple deals and have a proven track record getting PRIVATE MONEY with better terms becomes much easier.   

At this point you will be confident enough to lock up a contract on a property before you have the money lined up (since you can always go back to hard money or wholesale it worst case).  Once you have a contracted deal you can ask other experienced investors who they are using (you will be surprised how many of them lend private money themselves) and pitch them your deals and experience.  Once you find one, rinse and repeat.