The Short and Skinny on Private Money Lending
So what IS private money lending and how do you get private money lenders for your real estate deals? Let’s start with definitions:
A Private Money Lender: This is an individual with whom you have a relationship of trust who chooses to invest in your deals. It is NOT a professional lender, a hard money lender, a money broker, a transactional funder, or anything of the sort.
A typical private money lender is a guy you work with at the office, your dentist, your doctor, the guy/gal you work out with at the gym, a retired aunt or uncle, your accountant, someone you used to do business with, a guy you met at your church, a friend of a friend who is looking to diversify, etc. Whoever they are, they are someone who has been relatively successful in another profession and now has some idle cash or a 401K/SDIRA which is not earning them much. They are unsatisfied with their returns they are currently getting. Maybe they even thought about real estate already but don’t have the time/knowledge to start investing themselves.
Whoever they are, they are someone with whom you have built or are building a relationship. You’ve talked to them about your real estate deals a few times or maybe just about your strategy. They’ve told you about their “money problems” and you realized that you can help them by letting them invest with you.
Do you see where I am going with this??
A real private money lender is not someone you’ll find online by googling “private money lender”. And they are certainly not someone who I can refer to you. So please don’t email me asking me if I can “send some private money lenders your way”. MY private money lenders know ME, trust ME, and are typically local to MY market. I’ve spent a long time building that trust, credibility and track record with them. Even if I wanted to send them your way, which I most certainly do NOT, they would have a hard time working with someone who is far away and whom they don’t know at all. Relationships take time to build. But once you build them, the pay off is amazing.
I promised you some harsh honesty and here it was.
==>So how do you find, build, create, mold your own private money lenders? <==
CALL DDK MORTGAGE SOUTIONS!