Private money lenders are almost everywhere in the city; one can be right next door. Many real estate investors would go for private money rather than funds from banks since the interest rates and provisions are more beneficial to the investors. This has been good news for real estate investors since they have an additional option in increasing their investment capital.
It is easy to find a good private money lender nowadays. Some may use newspaper advertising but you can also get a list of investors through title companies. It takes trust for a private money lender to let you borrow huge amounts of money from them and these are some of the things you can do.
What You Should Not Do
The one thing you should always avoid when lending money is to lend from your immediately family. Your grandparent’s retirement should not be used as source of funding because it will just result to a loss of your investment ability. Emotions might be included in the loan which are not good for investment. Real estate investment can be quite hard to fathom for ordinary individuals which is why you should only lend money from knowledgeable people. You should be able to find private lenders in your local area that can offer guaranteed funding for successful real estate investors.
Finding the Right Private Money Lender
Listing the names of people you might know who are interested in lending money for real estate investment should come first. There might be some of your friends who are interested in the concept of real estate investment. Also consider those people who have the funds to start a real estate investment but could not start it due to lack of time. You can easily get funds from these people because they already where the funds will be used.
Business Card Printing
Your company name and your own name with the contact information are shown in the business which will help gain the trust of private money lenders for real estate. The people you will meet who might be interested in your projects should be given with your business card. You can easily get connection with a lot of people until someone will be able to fund your investment plan.
Contacting Private Lenders
It would be best if you read the local newspaper. Try asking for recommendations from lending companies or banks for a list of local investors. You can easily get a list of private money lenders through the internet including their contact information.
Get into A Local Investment Group
Consider joining a local investment group in order to get leads for reliable private money lenders. If you are thinking of getting a construction loan, it would be so much easier if you have a group of people who will help you out.