I know this question has been asked many times, and apologies for asking it again. I have seen many posts about finding private money lenders not hard money lenders. The fall back answer has been ask friends and family but what if friends and family don't have money to lend. It has also been said on posts and videos that money is the easiest thing to get when you are investing in Real Estate. So with all that said, why is it difficult to find a private money lender. There must be groups, clubs, organizations or individuals that have money to lend for a good return on their investment. As far as I have looked in this forum I can't find any private money lenders or anyone with sources for private money lending. Is there anyone out there?
"money is the easiest thing to get when you are investing in Real Estate"
I'm pretty sure that statement is false. There are plenty of things in real estate that are easier to get than money.
"Money is easy to find when you have a great deal."
I find that to be truer. When you don't have anything to present to a private lender, it's going to be very difficult to get any money from them. Private lenders like to see a track record, otherwise it's almost blind faith, and the only people that would lend like that are family and friends.
What exactly are you looking for in private money? If you have some money of your own to invest, it might just be easier to use hard money. Otherwise, maybe you can find a partner instead of a private lender.
I know this question has been asked many times, and apologies for asking it again. I have seen many posts about finding private money lenders not hard money lenders. The fall back answer has been ask friends and family but what if friends and family don't have money to lend. It has also been said on posts and videos that money is the easiest thing to get when you are investing in Real Estate. So with all that said, why is it difficult to find a private money lender. There must be groups, clubs, organizations or individuals that have money to lend for a good return on their investment. As far as I have looked in this forum I can't find any private money lenders or anyone with sources for private money lending. Is there anyone out there?
Thanks
Philip
They are out there in this forum. Next, if you are using a forum such as this consider sprucing up your profile with a picture.
"money is the easiest thing to get when you are investing in Real Estate"
I'm pretty sure that statement is false. There are plenty of things in real estate that are easier to get than money.
"Money is easy to find when you have a great deal."
I find that to be truer. When you don't have anything to present to a private lender, it's going to be very difficult to get any money from them. Private lenders like to see a track record, otherwise it's almost blind faith, and the only people that would lend like that are family and friends.
What exactly are you looking for in private money? If you have some money of your own to invest, it might just be easier to use hard money. Otherwise, maybe you can find a partner instead of a private lender.
Thanks for the info Nghi. I have money to invest, but wanted to use other people’s money, I have thought about hard money but have not found any with terms I like.
@Philip Madison You maybe better off by meeting people locally. Check out local REI events near you. You can find them through BP or on Meetup site. Join the groups and start going to events. You'll meet tons of investors and people with various trades this way. Need more help, feel free to PM me.
As of today, you might not have any true private money sources. You would just need to use hard money. You can meet people at your local REIA, but most likely they will offer hard money loans (and not private) being that they don't really know you personally.
Network with people and build relationships and a good reputation. Then your true private money lender options might open up.
Also, if you see someone advertising (or a website) calling themselves a private money lender, I'm going to say they're actually a hard money lender. From my understanding of the words, "private" is with someone you personally know and have a relationship with such as friend, family member, associate, etc. Hard money is from someone you don't really know. And obviously terms tend to be higher with hard money where private can be whatever terms make you both happy.
Thank Alina and Nicole for the info. I will look into that.
In the mean time, I know this has been asked many times, but here it goes again.
Do you, or anyone in this forum know of a some good hard money lenders with good terms for the 48 contiguous states.
Thanks
Philip
It helps to know what state the property you're looking for a loan is in. I don't know any lender that loans in all contiguous states. I know a few that lend in 40 states, 25 states, 37 states, etc.
You can expect rates between 7-12%, depending on strength of the deal, leverage, experience, and credit. If you give us a little more info, we can help direct you where to go.
I also made a post earlier today about private money that you might find useful. Not sure if BP will allow me to post links, but you can find it in my profile on topics that I started.