Missouri Duplex

[Ivory Hayes]

Is it best to seek out private money lenders in the area which the property is located? I've been told that it's best to try and connect with private lenders in the area of the potential property for tangible reasons. Will lenders usually only lend on properties that they can touch or take a drive by to see or have I been lead astray in regards to this subject? Can someone tell me what's the normal practice of a private lender and what's the criteria that they are looking for when considering lending funds?

[Boyd McClean]

Ask a private lender what his.her requirements are. You have to have someone who will mesh with your philosophy. There are private lenders out there that will loan out of their state.

Be prepared to show a private lender a presentation of who you are, what have you done and why he should lend to you. Show them what is in it for them. This is a relationship business.

Ask a potential lender if they will do:

Debt financing

Equity financing

Combination of both.

Be creative. Be prepared with a detailed scope of the work that has to be done. Rather than approach a lender from the point of you want funding. Ask "Bob do you do private lending? And what are your requirements?"

Find out what are your states rules are for NOO funding.