Finding private investor money

[Cave Johnson]

I've been doing flips and buy and holds for a couple of years but still end up using hard money. How do I find a private lender to finance my deals?

[Rick Pozos]

Hey @Cave Johnson, True private money comes to you from family and friends that know you are doing lots of real estate and making money at it. Personally, I post on facebook when I am done with a rehab, sometimes I show how horrible a property is so that everyone knows what I am doing.

We have a "Wine Therapy" every month to network with friends where I happen to let them know that I am doing real estate and if they happen to have a 401k from a past job, they can get a fixed rate of return on their money that they have invested with me.

I have a small REIA every month where I give other investors some knowledge. They know that I am doing this full time. If they want to invest with me, I am here to accept money for my next deal.

My facebook says that I buy houses!!! When you give out lots of information, you get people who want to know how they can invest 30k or 50k in a self directed IRA. I let them know that they can lend it to me!!!

I also have a blog called the Frugal Real Estate Guy.

After you let everyone know what you do, ask if they ever need to invest some extra money, you can help them with that. I tell them that I pay 10% to 12% for money and I would like to pay 8% if they have some extra cash.