Private Money: Discover the New Way to Fund Your Real Estate Deals

Private money is money borrowed from private individuals as opposed to using banks or mortgage companies to fund your real estate investment deals. Most real estate investors knock on the door of banks or mortgage lenders to take out a traditional mortgage to buy investment properties.  However, as the economy is turning negative and traditional lending sources are drying up, more and more investors need to seek out alternative sources of capital such as private money.

So, the secret to look for these sources of private money is to look for those individuals who have the money and may be interested in lending at rates of interest over what they can get with CD’s or money markets.  Private money lenders are average people who lend money and may include doctors, accountants or other processionals as well as retired individuals.  In other words, people who you meet and interact with in your everyday daily life.  

To find private money for real estate investment, you need to some research. Generally, you may start your marketing process by meeting people you already know and have an established relationship with as your starting point. Explain how you are a real estate investor and pay high rates of interest on their capital that is secured by local investment real estate.  You may have friends who are saving for their retirement and want higher returns or someone who has some extra money and would like to invest on a more aggressive basis.  Just spread the word to everyone and people will eventually start to look for you once the word id out and you can demonstrate a successful track record.

In case you do not want to rely on your friends or family you can market for people with private money by placing ads in small local newspapers or with you local real estate investor clubs.  These ads need to be simple without too much details and should never promises a “guaranteed investment result”.  You may also look for people who have a lower rate of interest on their certificate of deposits (CDs) or money markets investment. These people may willingly to lend you in order to increase their rate of interest. 

Download your FREE eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders"  and learn how to fund your real estate deals with Private lenders!