Private money lenders play a crucial role in real estate investing. Real estate investors are always in pursuit of the next awesome deal, but that doesn’t always mean they have the funding to finance new investments.
Not even the most successful of investors has unlimited capital sources. Without available financing, the deal is incomplete. Thus, many successful real estate investors turn to private money lenders to help fund real estate investment opportunities.
Who are Private Money Lenders?
A private money loan provider is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and mortgage. These lenders can be a variety of individuals, but the below three forms of private money lenders are the most common.
Private money lenders: Search your inner circle.
The primary place for new investors to find private lenders is within their own inner circle of friends and family. Obtaining financing from your inner circle is a popular method, because it’s much easier to make your case in front of individuals who already know you. Of course, one potential downside of raising money from your inner circle is that they may not be informed enough about the real estate market. If they don’t understand what makes a deal good or bad, you could run into some problems. When accepting funding from someone you know, be sure you are clear about the risks and rewards.
Private money lenders: Farm your warm circle or people who know you.
The best way to explain this circle is to draw an analogy to LinkedIn Connections. Your friends and family might not have the funding you need, but they likely know of others who would be interested in your investment. Since they are second party connections, you should not have to spend much time finding them or introducing yourself.
Private Money Lenders: The rest of the world.
These are people you do not know. In order to secure financing from these lenders, you will need a pitch book or presentation to show them why you are worth investing in.
Are you still wondering to find potential Private Money Lenders? Attend a SWFL REIA meeting!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
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