I am starting to make offers through realtors on ugly houses to wholesale but if I can’t get a buyer I am thinking about getting private money and doing the rehab and selling it myself. I am in the construction biz so the rehab is no problem. Where can I get a private money lender with my crappy credit (I have many late payments & short sale a year ago) WITHOUT having to go to friends and doing a presentation asking them to give me money from their IRA or whatever. I want to to go through a legit company or person and not do a luncheon to get money. I am in Daytona/Orlando FL. Anybody know or have suggestions? Thanks.
Unfortunately, the only way that you are going to find money with that kind of scenario is family or friends. You may want to visit your local REI club meetings and get your name out, but I do not see any seasoned investos taking a risk with your background.
Continue the wholesaling or maybe you could do some birdogging to build up your reserves a bit.
Private money is obtained not by credit but by trust. If your family and friends don’t trust you and you do not want to do the work to build trust with strangers, you have effectively ruled out everyone. To get private money you have to show them whats in it for them, how safe is their money and when will they be paid back. There are many people that are out of the stock market now that the market is flooded with private money. It is like a real estate deal they do not advertise themselves at a one million dollar deal they must be made. Private money lenders are made, with the right deal and hard work to build a relationship with them.
Redhawk
Really all you need to do is find the right deal. If you have a good deal the money will follow. You can also start calling around to mortgage brokers and asking if they know anyone who lends on rehabs. That’s how I found our guy and his terms are excellent when you compare to the HM guys.
If that doesn’t work, go to the HM guys. Again, they’ll lend money on a good deal regardless of credit. You might have to personally guarantee a few deals but after you make some money and pay on time you can negotiate to waive the personal guarantee.
Buy right and you’ll have no problem. Hope that helps
Thanks for the tips. Perhaps I should ask, where can I get Hard Money from with crappy credit since I feel that is what I might need worst case scenario?
There is a ist of Hard Money Lendres here on the site. The link is under the Investor Resources tab to the left of this post.
Good Luck