Raising Private Money

[Troy S. Smith]

Hi BP, I am a Real Estate Investor in St. Louis, MO.
How do I "legally" attract Private Lenders and raise private money outside of friends and family for single family Fix n Flips and commercial multifamily BRRRs?

I specifically need to raise money for down payment and buying costs, property improvement and repair cost, financing cost, and holding and selling costs.

Vested Property Groups LLC

[Kim Tucker]

First of all POSTING anything about wanting private money actually violates a lot of Securities Laws.

One of the best ways to attract private money is to attend your local Real Estate Investor association meetings regularly and develop relationships with the players there and a reputation as someone who knows what they are doing and who does solid deals.

At your local groups: SSIC, Metro East, St Louis REIA , Tim Grimmits Groups, Jason Pallisers Groups, Damon Remys Groups, Joe McCalls Groups and all the Lifeonaire people, you will find some event to attend regularly and there you will find.

Hard Money:  Where you are going to have to start if you don't have a track record or friends and family.  I only know of Longhorn in St Louis, but I am sure there are 20 other lenders like this.  Some of our KC Lenders might lend in St Louis:  Merchants Mortgage, Investors Choice Funding, Crossroads Investment Lending all come to mind.

Small Home Town Banks:  They offer the same loans as Hard Money, but at much cheaper rates if you have good credit and reserves.

After you have done a few deals you might find the private lenders who want to do deals with you at your group.

I would suggest, however, to attend some training, watch some videos or podcasts about Private Money to find out what you can and can't do.  For example last week I hosted a webinar with Alan Cowgill, one of the nations leading trainers for private money and we talked about advertising on public forums and in all 50 states unless you are registered with the SEC or a few programs in your state you can't advertise to people you don't know.