Raising capital for real estate is at some point what every investor must do. When you’re buying your first rental property, you can easily use your cash savings or a conventional loan to close on the property. But, on your second, third, fourth, or one-hundredth deal, finding the money (or financing) to get the deal done may start to get a little difficult. So how do you come up with the money to buy more rental properties, house flips, or commercial real estate, WITHOUT asking your parents, grandma, or friends for cash?
Amy Mahjoory has raised $20M from private money lenders, none of which are related to her (she makes sure of that). Think of Amy as a capital connector, getting to know as many existing, or potential, private money lenders as possible. We know what you’re thinking, “private money lending sounds complicated, don’t only big investors do that?” Think of a private money lender as anyone who has money, isn’t doing much with it, and wants to make more of it.
These lenders could be your taxi driver, your dentist, or maybe a friend of a friend. Private money is all around you, and if financing or cash reserves is what’s stopping you from doing more deals, we urge you to take the four steps that Amy outlines today. There’s a good chance you already know a private money lender!
In This Episode We Cover:
What is private money lending and why it’s so different from traditional financing
Building a reputation that’ll turn a stranger into a trusted lender quickly
The “four-second power pitch” that’ll land you lenders immediately
How to make your lending process legit and the documentation needed to do so
Addressing investor fear and how to make lenders feel confident in you
The key to open, honest, and powerful communication when talking to any potential lender
And So Much More!
Links from the Show
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
Get Your Ticket for BPCon 2022
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
“On The Market” YouTube Channel
David's BiggerPockets Profile
David's Instagram
Rob's BiggerPockets Profile
Rob's Youtube
Rob's Instagram
Rob's TikTok
Rob's Twitter
Access Brandon Turner’s Free Masterclass
How to Find Private Money Lenders and Finance Your Deals
10 Ways to Build a Reputation as Your Market’s Premier Real Estate Investor
Hard Money vs. Private Money
Books Mentioned in the Show
Raising Private Capital by Matt Faircloth
Rich Dad Poor Dad by Robert Kiyosaki
Connect with Amy:
Amy's Website
Amy's LinkedIn
Amy's Instagram
Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-636
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