Raising Money : Private Lending Advice

[Nicholas Myers]

Seeking Advice on Connecting with Private Money Lenders or finding 50/50 money partners – Your Insights Welcome!

Hey yall!

Hope you're all crushing it in your ventures. I'm Nick Myers, formerly the Market Acquisitions Director for the SFR3 Fund, now navigating solo flips in Cincinnati, OH.

 I am on the hunt for some advice, How do you connect with private money lenders or find money partners for your projects? Any strategies or insights you're willing to share on finding reliable 100% funding sources? I'm currently stuck doing 1 or 2 flips at a time due cash flow constraints and needing to fund down payments. My construction team is primed to scale and can handle 5 or 6 projects at a time. Would love to do 20+ flips this year but don't see that being possible without access to 100% financing through private lenders. I'm also open to 50/50 partnerships but struggling to connect with the right people. 

🔨 Background: In my SFR3 days, I steered acquisitions in Little Rock, AR, tallying over 100 successful acquisitions, rehabs turned rentals during my tenure. Last year, I took the plunge into independent flipping, focusing on Cincinnati, OH.

👷‍♂️ Meet the Team: I've partnered with a stellar construction crew led by a former hedge fund construction exec in Ohio, we're currently crushing it with streamlined processes and quality work.  

I've got plenty of experience and my construction team has 10X the experience I do. But struggling to fund the operation beyond our current capacity. ANY ADVICE IS GREATLY APPRECIATED. 

Appreciate your time and looking forward to hearing from yall!

[Derek Dombeck]

I've raised in excess of 20 Million over the last 10 years and the best advice I can give is do not ask for money. Start telling anyone that will listen, what you do and how you do it with private funds from real people. As more people hear your success stories, they will start asking you how they can get involved. 

Also, do not tell people what you will pay them. Instead ask them what they would like to get in a perfect world. Why you ask? If you are telling people you pay 10% interest and they are used to getting 3-5%, their mindset may instantly think your proposal is high risk. Instead, they say we have been getting 5% and we would be ecstatic to get 7%. OK, give them what they want. If they say they need 15%, maybe not.