Getting Started Finding Private Money For Your Real Estate Investments

Have you heard the joke about the banker and his client? The client walks into the bank and says to the banker, “I’d like to speak with you about a loan.” and the banker says “Great – how much can you lend us?”

Sometimes it seems like nothing you do will make the banks want to loan to you… and if that is the case private money can fill the gap. And even though we’ve never had to focus on it in the past, private money is actually something we’ve been using since the beginning – we borrow $10,000 for a down payment from a realtor we knew, we borrowed $5,000 from a relative to purchase an extra parking spot for the condo we were buying, or we secured vendor financing for the value of the property. These are all examples of private money – which is simply cash from an individual investor seeking a return on their investment.

So if you’re looking to buy real estate right now and the banks aren’t looking at you favourably, then private money might be the answer.

The easiest way to find private money is to ask everyone you know if they “know somebody that would be interested in making a monthly return on their cash backed by quality real estate.”

You might think you don’t know anybody with that kind of money… but you also might be surprised at who you know that is really excited that you’ve offered them an opportunity to get into real estate.

Start slowly… ask 5 people a week… and over a few months you’ll likely find out that there are several people within your network that have anywhere from $10,000 to $200,000 or more to loan you on your next property purchase!