All Forum Posts by: Amir Khan

Quote from @Jason Ham:

Hi Amir, could you send me the information as well? Thank you in advance!

Got your DM, will do an intro..

@Blake McWilliams This is a most challenging problem with both residential and commercial investors. While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.

You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.

For example; I raise private capital by offering free educational workshops for people with self-directed IRAs. The workshop shows how SDIRA owners can earn double-digit returns by owning real estate as a bank. DM me and I'll be happy to chat with you..

@Jevani P. Barron first if you are within your inspection period, you may be able to terminate the contract without any reason. But if that period has expired, what would be your reason to terminate the contract?  And/or are you willing to take the risk of being sued by the seller for not performing on a legal contract (and losing your earnest money)?

Your potential buyer suggesting you terminate the contract and them paying you a fee does sounds fishy to me. Why are they proposing that if they want the property?

Quote from @Otis Clayton:

I am looking to partner with someone and when I find them , I wanted to know what is the best strategy to partner with them? What bylaws should I consider and what business strategy should we implement?

@Otis Clayton You say "I am at the point that I want a partner with some cash and credit to refi the deals I get from marketing and talking to sellers"

Based on that you are looking for someone who has cash and credit, wants to invest/benefit from real estate but does not have time to find deals.

Look for someone like that, be clear on their role and your role. Create an agreement so both parties are clear on what is important to each of you, then have your attorneys sign off on it.

Hope that helps..

Quote from @Frank Alfano:

Quote from @Amir Khan:

Quote from @Frank Alfano:

Thanks, Amir—this is incredibly helpful feedback! You’ve given me a lot to think about, especially regarding refining my ideal PML strategy. I’m new to private money lending, so while I understand the concepts in principle, I’m still figuring out how to identify and connect with these investors in practice.

To clarify, I’m targeting 6+ unit multifamily properties, and private money is a way to scale my expertise from smaller properties into larger ones. My goal is to stabilize, refinance within 3-5 years, and offer strong returns to lenders.

Your point about targeting SDIRA investors and high earners is interesting—how do you typically find and connect with these types of lenders? Do you focus on networking events, direct outreach, or something else? Thanks again for sharing your insights!

I collaborate with large custodian companies. In additional to conducting educational workshops, I also write blogposts for their websites. You could organize your own in-person event and market to your avatar.

Thanks, Amir! When you say ‘market to my avatar,’ are you referring to a specific type of audience I should focus on?

@Frank Alfano Avatar is your ideal prospective client. This is based on demographics/interests including age, profession, income etc..

Quote from @Frank Alfano:

Thanks, Amir—this is incredibly helpful feedback! You’ve given me a lot to think about, especially regarding refining my ideal PML strategy. I’m new to private money lending, so while I understand the concepts in principle, I’m still figuring out how to identify and connect with these investors in practice.

To clarify, I’m targeting 6+ unit multifamily properties, and private money is a way to scale my expertise from smaller properties into larger ones. My goal is to stabilize, refinance within 3-5 years, and offer strong returns to lenders.

Your point about targeting SDIRA investors and high earners is interesting—how do you typically find and connect with these types of lenders? Do you focus on networking events, direct outreach, or something else? Thanks again for sharing your insights!

I collaborate with large custodian companies. In additional to conducting educational workshops, I also write blogposts for their websites. You could organize your own in-person event and market to your avatar.

@Frank Alfano I am assuming when you say small multifamily then you are referring to up to 4 unit building. Why are you looking at PML vs traditional financing for this type of deal? 

In my experience, PMLs finance all types of deals SFH, residential multifamily up to commercial multifamily. I think it will help if you are laser focused on your PML avatar. For example; you could target high earner W2 IT engineers. Then it becomes a bit easier to figure out how you are going to target them.

For example; I use a specific real estate investment strategy with a 5-year exit. My PMLs are people with self-directed IRA who are perfectly fine with 5-year term while earning double-digit returns passively tax-free in their SDIRA.

@Alexandre Boustany congratulations on joining BP! There are many out-of-the-box solutions available for many industries. So it would depend on following:

- What are your top 10/core needs of your business workflow.

- Do you want to manage the new system internally or have an outside vendor manage it for you for a small fee.

- Would you be requiring custom changes often to your digital workflow?

While I don't do this professionally, I have a software team that works for me overseas for my real estate business needs. I can give you some advice and/or tips if you like. DM me..

Quote from @Mike Klarman:

Virginia, I would love to hear about a deal or two that you funded.  Be interesting to see the inner workings of the deal and how it was underwritten.

The big question in life, not to be or not to be, not nature vs nurture, no, what is the difference between a HML and a PML?

Answer is, could be nothing and another answer is could be everything.  There's lots of definitions and distinctions between the two that get thrown around.  In the end, it is up to how the investor themselves classify the lender.

HML is thought of being more "institutional money". I know of. very big HML that was funded by a billionaire with just 100 million to start, it was like 15 years ago and they are still around today and doing billions per year in loans. Now, this was all done with someone's private money so is it private money or hard money?

To me, PML is a friend of a friend or an Uncle or a co-worker's father.  There's some connection you have to this person with money who is looking to invest it short term and collect an x% return.  You and this private person you met hammer out the details of the loan at the kitchen table so to speak and you seal it with a handshake and your reputation that this Private Person already respects or whomever introduced has vouched for you.

But if a man opens a lending company tomorrow with 50 Million of his own capital and he checks in on the HML market to see what it bears and he copies his products and UW guidelines and now is he PML or HML? That's why the personal connection with the verbal deal and personal reputation on the line matters for me in classifying as a PML situation.

That is a very clear explanation of the difference between HML and PML. Unfortunately, I see many HML marketing where they portray themselves as a PML (whether purposely or not) confuses newbies...

Sent you a DM..