What's the best way to find private money lenders

[Kyle Pierce]

My partner and I currently have 3 flips on the market, 2 under rehab, and 1 in the pipeline. We're trying to scale and need help funding our future deals. My question is what is the best way you have seen to get funding for rehab/purchase price aside from hard money. Hard money is great but as you know it gets expensive. I know private money and getting private lenders is key to scaling. I have been Networking at meetings and talking with family and friends and that has helped.

Also, how hard is it to get a business line of credit from a local bank. If they saw a year of successful flips and a good profitable PNL are they likely to give a line of credit? If I go to them with 50-100k in the bank would that also help or are they typically wanting to see much more than that?

Right now we're flipping and wholesaling homes near the Salt Lake City area.

[Jay Hinrichs]

I deal with a lot of local community banks.. or lets say I have had 8 facilites like this.

6 in my home town of Portland with 6 different banks.. one in MIssissippi and one in Charleston SC.

now i have one in PDX  none in MS  and one in Charleston

they are VERY hard to get.. I would say you need at least another year or more .

50 to 100k does not cut it more like 500k in cash in the bank will raise and eyebrow.

lastly its all about relationships.. in all cases I had personal contact many lunch and follow up meetings with my bankers.. Everytime I go to Charleston i take my banker to lunch.. and yes i take him not the other way around.

but start the ball rolling and work into it.. even if its a small loan of say 100k... then get that relationship going.

some of the national lenders have programs I just got approved for 5 million today as a matter of fact. And by the way for anyone reading this it was also 2 years tax returns solid credit full underwriting.. but NO money up front not even for a the fico run... So don't get sucked into fake lenders.. 

but I had to give them HUDS of 25 deals I bought and sold in a 12 month period.. which was easy for me we are high volume but folks starting this is virtually impossible.. and of course I have years at it.. did not happen over night.