Finding a private mortgage investor for BRRRR

[Mark Fletcher]

How are you guys marketing to find private individuals that are simply looking for a good return on their money?

I know of a couple local fix and flip companies that are using money from private individuals to fund their deals. I have friends I could reach out to, but I just really would prefer not to exploit those relationships. I think I’m persistent enough to get it done otherwise. I already have a rental that is an owner finance. I understand the mechanics and have an attorney that is already doing these deal for others. Thanks in advance for any advice.

[Matt Hurley]

Short answer, talk about this to everyone and network your butt off. My personal finances are tied up my first BRRRR right now, but through my local REIA I met a dude who wanted to partner up. He has plenty in cash and a decent amount from his 401k he can borrow, we're forming the LLC right now and looking for property #1.

Longer answer, TALK about this new thing you're doing with EVERYBODY. If you're passionate and knowledgeable about it, you'll find your people. It might feel crappy to straight up ask family/friends for money. But if you just talk about where you are you'd be surprised what comes back to you. Buddy of mine in this area discovered his uncle could borrow $100k from his retirement 401k by talking about his new endeavor and the 10%-15% ROI he gets on every deal. His uncle came to HIM and asked, "how can I get that return?"

Btw, the above is not just how I found my partner, it’s also how I found a landscape designer that’s re-working my exterior for free, a handyman that just wants any job because he’s about to get his contracting license, a 20+ yr union drywaller who lives 2 doors down from me...you get the idea. Good luck Mark!