Real estate investors search for private money lenders to back their investments. Unable or unwilling to use a commercial or hard-money lender, investors turn to private lenders to finance their real estate transactions. At a time when interest on bank savings is nominal, a private money loan benefits the lender with a return that is substantially above that offered by commercial banks. The borrower benefits by the relatively easy qualifying terms, and receives short-term funds. You can find private money lenders through friends, family and professional resources.
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1
Draw up a list of potential investors and create a professional presentation. Build a portfolio of properties that are on the market and that you consider worthy of investment. Outline your parameters for purchase price, closing costs and costs of renovation for each, and include your projected return on the investment over a specific period of time.
2
Gather a group of friends and family together and deliver a persuasive case as to why they should invest. Answer all questions honestly, especially when queried about your past investment history and others who have joined your pool of investors. Be clear about the risks and downside. Don’t borrow if you don’t want to risk the friendship.
3
Extend your network. Host a luncheon for colleagues and friends of friends. Give a power-point presentation about your investment and hand out professionally printed brochures that outline your investment goals.
4
Find investor groups. Research local business journals to locate investor groups. Ask commercial lenders and mortgage brokers for referrals. Meet with a member of each group and ask if your project is worthy of presenting to the overall group. Offer investor groups terms for longer periods of time than professional investors require, and agree to pay interest-only for the term of the loan, if it’s requested.
5
Approach professional investors. Join the American Association of Private Lenders and attend their conferences. Build a profile on LinkedIn and join the site's investment subgroups. Expand your reach into private investment groups by joining online forums, or through sourcing sites such as www.privco.com. Create a Facebook page and a Twitter account for posting private investment news. Subscribe to private investor magazines focusing on your state. Join a local chapter of the American Association of Private Lenders.jseal
Real estate investors search for private money lenders to back their investments. Unable or unwilling to use a commercial or hard-money lender, investors turn to private lenders to finance their real estate transactions. At a time when interest on bank savings is nominal, a private money loan benefits the lender with a return that is substantially above that offered by commercial banks. The borrower benefits by the relatively easy qualifying terms, and receives short-term funds. You can find private money lenders through friends, family and professional resources.
Sponsored Link
Business Loans
Fund your business today $5k to $150K. Apply now!
www.cancapital.com
1
Draw up a list of potential investors and create a professional presentation. Build a portfolio of properties that are on the market and that you consider worthy of investment. Outline your parameters for purchase price, closing costs and costs of renovation for each, and include your projected return on the investment over a specific period of time.
2
Gather a group of friends and family together and deliver a persuasive case as to why they should invest. Answer all questions honestly, especially when queried about your past investment history and others who have joined your pool of investors. Be clear about the risks and downside. Don’t borrow if you don’t want to risk the friendship.
3
Extend your network. Host a luncheon for colleagues and friends of friends. Give a power-point presentation about your investment and hand out professionally printed brochures that outline your investment goals.
4
Find investor groups. Research local business journals to locate investor groups. Ask commercial lenders and mortgage brokers for referrals. Meet with a member of each group and ask if your project is worthy of presenting to the overall group. Offer investor groups terms for longer periods of time than professional investors require, and agree to pay interest-only for the term of the loan, if it’s requested.
5
Approach professional investors. Join the American Association of Private Lenders and attend their conferences. Build a profile on LinkedIn and join the site's investment subgroups. Expand your reach into private investment groups by joining online forums, or through sourcing sites such as www.privco.com. Create a Facebook page and a Twitter account for posting private investment news. Subscribe to private investor magazines focusing on your state. Join a local chapter of the American Association of Private Lenders.jseal