You have a hot lead under contract, you know you can wholesale this property for a quick profit but you also know if you rehab it you can make 10’s of thousands of dollars on the back end!
You did your homework, created a beautiful, marketable spreadsheet showing that it is a great deal but there is one problem, the contract clock is ticking, you are short on cash and don’t know what to do!
Here are 7 ways to find & secure private funding within 7 days!
• Personal contacts: This is where I always start and this isn’t begging mom, dad or other family members for a loan! There is thousands if not millions of dollars available to you within your contacts on your cell phone. The average person has over 200 contacts in their phone. Grab a pen and paper then go through each one of your contacts analyzing if they would be a good potential private lender for your deal. Write down every name that has the potential to back you and start calling to schedule an in person meeting!
If you are reviewing your contact list and find that your peer group sucks then it’s time to make new friends that can help you succeed on your real estate investment journey
• Meetups: Here is a great place to find your new peer group, with like minded interests and that can help you find the money to close on this killer deal!
Go to meetup.com and search for groups for investors, real estate investors, business owners or entrepreneurs. Attend these meetups (most of the time are 100% free) and network like CRAZY! Don’t be afraid to approach people with your deal! We are talking about making money here and everyone is happy to listen and help when there is a chance to profit in some way, shape or form!
• Local business owners: My first unsecured loan from a total stranger came from a wealthy local business owner. A friend of mine had shared with me that she was opening up an Internet cafe that was being 100% funded by her friend Bob. When I asked what Bob was into she explained that he owned oil change stations, rental real estate and storage units. I was all ears, a successful investor/ business owner with ample LIQUID cash to invest in other people! I had to meet this guy! I actually paid my friend to set a lunch meeting for the 3 of us to meet. I brought several deals I wanted to invest in and shared in great detail what I planned to do with each property to become profitable. This paid off! Bob could tell I was an ethical investor and A week later he handed me a check for $15,000 to purchase a duplex on the westside of Cleveland. I purchased, rehabbed, rented and held that property for one year then resold it for $38,000.00
• Cigar bars: I’m too much of a health nut (or just not tough enough) for cigars but people with money hang out in cigar bars! If you love real estate investing I’m sure you’ve heard of Mark Evans DM. I had the opportunity to connect with Mark over the summer and I learned very quickly that he is doing HUGE things in this real estate game! Mark appears to be an 8 figure earner so I payed attention to where he spends his time while working, cigar bars and golf courses! If 8-figure earners are networking in these environments then that is exactly where you want to be as well!
• Real Estate Attorneys: To this day attorneys scare me! I’m just being real on this one. I work with them every week in my business, they save me when I need them to and I still feel like I’m going to get sued by them the second I turn my back. So now you know that I’m crazy here is a FACT real estate attorneys can connect you with private and hard money lenders! Call or email attorneys with the details of your investment property and ask if they have clients that would be interested in funding your deal. The attorney has incentive to get you funded because they will get paid to draw up the note for your deal!
• REIA groups: These are meetups on steroids! Literally 100’s of investors gather together usually once a month for a strategy/ networking event! Private money and hard money lenders are plentiful at these events as they meet a great place to invest their money! There is no doubt you hold the paperwork to the best investment in the room so attend these meetings and secure your funding!
• Bigger Pockets: biggerpockets.com is an online real estate investing forum with over 300,000 investors. If you need fast funding in your area, jump on the forums and see who is discussing private and hard money. Private message these individuals, tell them about the deal you are working on and see if they have someone to assist you with your financing needs. A forum with over 300,000 real estate investors is without a doubt a guaranteed place to secure private funding!
• Investor Friendly Real Estate agents: These guys and gals know the deal! Investor friendly agents know what deals you want as well as the people that can fund them for you! These agents can be found on craigslist. Look for agents that have multiple “investment” properties listed on craigslist. Pick up the phone and contact them! Tell them about your awesome property you have under contract and ask if they know investors interested in funding this particular deal. In most cases they will be happy to help as they now know you are investor they can pitch their listings to!
Consistent networking is the key to massive success! Don’t fear rejection, get out there and ask until you get a yes! On your journey be sure to add value to others! People remember this and the rewards will always come back to you!
Warning: Utilizing private money can lead to financial freedom, bigger houses, newer cars and excess time with your family. In the event you line up excessive amounts of private money contact Michael Alder IMMEDIATELY for a list of additional deals to invest in!
Disclaimer: Crazy side effects of private money can lead to a loss sense of reality, fast women, cocaine addiction and unnecessary spending. Should this happen consult with Michael Alder to get you back on track!