Private Capital Fundraising Questopns

[Bryan Clement]

So I have a few targets for private capital for my next few deals. Do I get the property(ies) under contract first or do I see if my private capital sources would be interested first? I would have a hard time finding bank financing if the private capital fell through as my credit was shot down after I closed on my first mortgage (little credit history) any suggestions? How do other people find this solution? Thanks! 

[Theo Hicks]

I would get verbal interest from private money investors first. Because when you are speaking with lenders, they are going to want to know how you are going to fund the deal. 

Figure out what their return goals are and ask them "if I were to find an opportunity that meets your return goals, would you be interested?" That way, you know approximately how much capital you are capable of raising, which let's you know what sized deals to look at.