A great way to leverage your funds in a deal is to work with some private lenders. I would define a private lender as a private individual or company that loans money, for the purpose of funding real estate transactions. The lenders will usually secure their loan to you with the note on the property or some other kind of collateral from you. They are more flexible than hard money lenders and usually less expensive. There are several ways you can find these lenders.
- Online Searches: Use your favorite search engine like Google, Yahoo or Bing. Do a search for “private money lender, your city and state”, this should produce a list of places you can contact and qualify to see if they would be a good lender for you.
- Family or Friends: You would be amazed how many of your family and friends want to get into real estate investing and how much they might have to lend you. One thing to remember, always be cautious which family and friend you want to work with. Make sure they have some business savvy, also make sure they can afford to lose the money they invest into your deal, not that you are going to lose that money but if something were to happen then the loss would not ruin them or you.
- Real Estate Investment Clubs: This is one of my favorite places to find good lenders. Attend your local real estate investment club meeting. At this meeting you will usually run into private lenders and that face-to-face meeting will help you establish a working relationship with these guys.
- www.meetup.com on this site, get to the search button, type in “real estate investment club”, then select your city and distance you want to search. Then you will get results of club in or around your area. Click on each club individual, read about who they are and contact the organizer and get registered to go to their next meeting.
- www.creoline.com from this site, search your area and a list of clubs will be listed out. Contact the organizer and get registered to attend their next meeting.
- Networking Sites: The following sites will allow you to network with people and/or specific groups within these sites that will give you good leads to the lenders.