Private Lenders Are Hiding

[Danny Johnson]

Hello all.

I was just trying to get some ideas of how others are finding private money lenders. It seems as though the ones that charge the lowest fees and interest are not advertising that they lend. Hence the name 'private lender'.

One way I have found private lenders is to search the county records. Only recommended if yours can be searched online of course. It can be very time consuming but well worth the effort.

If you know of some properties that were bought by investors, you can search those addresses to see if they got a loan from a private lender. This may not always be obvious, but you start to notice certain individuals loaning to several different investors. Another way is to search for owner names that contain 'Land Trust'.

Once you have the names and address (if not found elsewhere, check the 'After Recording Mail To:' part of the recorded document) you can send them a letter informing them what you are looking for and ask that they give you a call.

I have actually built some good relationships with lenders that I found this way. They are usually curious as to how you found them (the better ones usually aren't advertising to lend money) and impressed by the creativity.

I know some people target high wage earners. Are there any other methods?

Thank you.

[Bill Gulley]

Hi Danny, some very good points above! Building relationships is never ending.

As far as the SEC goes, you can advertise if you are asking for A lender for YOUR deal. If you start advertising for lenders to pool investments or money to be collateralized by a mortgage or security interest, you're getting into problems. There are exemptions as well, those who have a million in net worth (not had to pass that point) and less than 5 members in a group, but like Will said, check with an attorney near you! State laws may be more restrictive than SEC! Searching records is the way I began finding them, then they began introducing me to friends. Call and ask, that sounds simple...Good luck, Bill