Creating Private Money Lender Relationships

[Michael J. Finnegan]

Hey BP,

I am struggling to figure out how to develop the best strategy to find and build relationships with true private money lenders.

I am a buy and hold investor who focuses on small multi-unit properties in the Connecticut markets. I have recently came to a crossroads in my investing. I need to find capital to keep investing. I continually find deals but utilized my limit on conventional loans and joint ventured (JV) with family members & friends motivated to invest.

Looking for strategies on finding and building relationships with private money lenders. Not looking for typical hard money lenders but individuals with capital that I can work together with on buy and hold deals. Lenders I can build a relationship with and continually present deals too. Lenders looking to either JV or passively invest.

Looking for suggestions and stories on how other investors found this type of private money lender.

Thanks BP!

[Ryan Herting]

Hey @Michael J. Finnegan, have you tried looking in your personal network? Sometimes people who are within the lending or financing space might have someone they can refer. Sometimes your local bank might have great relationships with private lenders.

Also, just so you have a clear understanding of your options, here is a breakdown of lender relationships I would have when it comes to capital: 

1. Banks

2. Family & Friends/ Private Lenders

3. Alternative Lenders 

4. Hard Money

Having a relationship with each of the individuals mentioned above will provide you with the most flexibility when it comes to investing.