My first experience with private money
I was thinking this morning about my first experience with "private money" for real estate purposes. It was an individual I knew for about 1.5 years.
I needed some money for rehabbing the gutted house I spoke of in my podcast. I approached him asking for a short-term loan of less than 6 months and needed about $3,500.
He surprised me by signing a check, but left the amount blank. He asked me to take what I needed but to please not clear out his bank account.
So I wrote out the amount for $3,480 and cashed it; the check was good and I was able to complete my rehab. The first month I paid him $480, the second month I paid him $500, and in month 3 I paid him back the $2,500 balance and treated him and his now-wife to dinner at a really nice restaurant.
Comments (4)
It is gratifying to get money like that. It just shows how important credibility and integrity are. That doesn't happen unless you are a stand up person.
Ned Carey, almost 11 years ago
Dawn Anastasi thanks for share the details but don't expect me to give you a blank check. I do love you Sis - but WOW! It was very classy of you to send them to dinner. You're my type of family.
Al Williamson, almost 11 years ago
Yes this was just done as a friendship favor.
Dawn Anastasi, almost 11 years ago
Hi, What was your relationship to this person like, so that asking him for 3500 wasn't awkward. And, since you did not do a flip, did the investment pay for the loan, or was it your own personal money? Last question: No interest paid on the loan, so he was just doing it as a favor? Thats cool if yes, I just wanted to know if I could find out a little more context, to see if this is a viable approach for me and my acquaintances.
Lisa Phillips, almost 11 years ago