Good Day To All:
I hope everyone is having Great Success in their Real Estate Endeavor’s?
My success has happily been improving over this this last year!
My question is: does anyone know of a “True website / source” for connecting with “True Private Local funding / Real Individuals”…not Hard Money companies. I have plenty of sources for Hard Money for my renovation business. I am looking for sources for money that is willing to be tied up for longer periods of time,(3-5 years), for true long term multi family building purchases…cashing out the investor in 3-5 years. Any help from anyone knowing of sources for this type funding?? There is too much junk on the web when I try to locate my money need…all I find is disguised “Hard Money Lenders”
Please let me know if anyone has a source.
Thank you…
All the Best to everyone for their continued Real Estate Success!
your problem is that you are looking on the web. True private lenders are rarely looking for you. If they are, they know they can charge normal hard money rates and therefore aren’t lending at the rates and terms you want.
Your best source for private money is friends and family and other people that are getting low rates of return on their investments. Show them how they can make much better return at less risk.
That stuff is a little hard to get up and running, especially if you dont have an image/history of making big money, but once you get a few lenders it tends to snowball. Both with them wanting to do more and them telling their friends.
I’ve had a lot of times when I was getting pressured to put money to work, which is a great problem to have.
As far as the 3-5 year horizon, you are probably looking for more of a money partner than lender. There is market risk involved in those longer time periods you need to be factoring in. If you cant qualify for institutional money for that kinda thing, I wouldn’t put friends and family money at risk without them being a true partner. Just my $.02.
Pretend YOU are lender…what’d you want?
Why would I (or you or anybody) prefer low yield investment when hi yield is available?
I suggest you step back and do a risk-reward analysis so you can show the money guy WHY he should do your deal instead of looking for that high yielder…maybe your deal is closer to him, or involves project he really likes, or you’re giving him piece of the profit, or your deal has little risk, etc…something that gives him a reason to go with you.