OfflineWhy is this not talked about much here? I think it would be great to have some input on this topic. I mean hearing find a friend with an IRA/401k is great but what if you don't have a friend or family member with one of those? In here all I have seen is very little mentioned about this. I have searched and found very little on it without paying a lot of money for it. I know this is what I want to do. I know owner financing is a wonderful thing. But what if you can't find it? What if your can't borrow it? What if your credit is shot, your debt to income ratio isn't good? Then what? I just would like info from people that have stepped outside of the box, away from friends and family members and did this type of lending. How did you go about it, because I know there is a law that says you can't advertise it? And that the only way you can do it is direct contact. Any ideas? What type of presentation did you present? I think it would be great to get this going in here. There is a lot of us that would like to know how to get started with this type of lending. I know, speaking for me, I just can't figure a solid way to appraoch someone. I know that there needs to be contracts in place. Just to walk up to someone and say "hey do you have money I could borrow that could make you more than if you just put it in a cd/ savings account" would really feel strange. I am just asking does anyone in here know of a good presentation that you could set up to use? What materials you use? In my first RIEA meeting we saw a speaker selling his books there and this type of lending seemed really sweet. But of course he wanted at the least a arm to share his info with you. Anyways I just wanted to throw down an idea I had. If anyone wants to share, please do and thanks.
Billy
Billy - there are lots of links here on the site for lists of hard money lenders. You can also google them and find plenty. Right now most of them have more money than borrowers. Otherwise - find a good deal where you can show people you know what you're talking about - that you researched the area and can tell them about the instant equity and profit margin. Network more at the RE meeting....there must be lenders in attendance there, and I'm sure other people just like you - maybe you can team up with some other investors! These are just ideas that come to mind for me. I bought my second flip with money from family & friends at 15% interest and 2 maxed out credit cards at 0% interest for a year! Find the deals and you will have the information you need to justify the loans. Dont quit!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
I have no intentions of quitting. And you are right, lots of places for HML. But if you look the topic is about private lending. Maybe I should of been more specific. I meant money from private lenders themselves. And sure there is alot of people that have friends and family that can do it. But what I started this for is the ones of us that can't. And some people are less fortunate than others and can't get the cards at 0%. I only want to talk about private lending here. I have several ideas but I want to do it with private lending. And to show others that it can be done this way as well. I am just looking for ideas on how to go about this. With private lending you don't have to qualify as in going though a loan process. HML is just that, if your credit isn't pretty good then you might as well hang it up. And most of it is for the short term for a big interest rate. Once again I wanted to start this for ways of getting private lending.
Billy
Flap your lips, flap your lips, flap your lips. That is how you get private money by letting everyone in the world know that you can give 10% on their money if they invest with you. I found my private lender through a real estate investing club. I also advertise on my website.
KimmyJ
Press on...
www.tagteampropertiesllc.com
See the thing is that you don't have to stop at one. I mean it all adds up. Even if it were just $5,000 at a time. You can use more than just one lender. This is my point of starting this thread. I would still like to hear about presentations. I know of a few people that have some money. But I want to be able to show them that I can get their money back to them and how. I want to put together a binder to show what all I can do for them, what their money can earn with me. And what it goes for. I wanted to show others a way of doing it without having to buy material to do it with. Thus the start of this thread.
Billy
Billy
Yes, you can have several lenders with money, but be aware that not more than two lenders should ever be a mortgage holders on a property at one time. So, having 20 people with 5k is not going to do you any good unless you pool their money which means you now have to get approval through the securities administration. I had to do a ton of research on private lending due to security laws, etc. My suggestion is that you do the research on your own for your own state. Go to club meetings and find investors who are utilizing private lenders. Ask them how they started and where to find the information. The binder you are referring to is called a "credibility kit." Good luck.
KimmyJ
Press on...