Introduction
Private funding is a great way to get into real estate. There are plenty of people out there who want to know more about real estate investment and have money to invest, so it’s not difficult to find funding if you know where to look! The key is to constantly be talking to people about what you do.
Friends, family & work colleagues
Friends, family and work colleagues are all good options for private funding. They’re more likely to understand your goals as an investor and will be more willing to help out if they know that their money is going into something that matters to you.
- Friends and family: If you have any friends or family who have the money for investment, this can be a great option for getting started with private funding. The best way to find out whether your friends will invest in real estate is simply asking them! Be sure not only to explain why it’s important for them but also what kind of return they’ll get on their investment (ROI). If they aren’t interested after hearing all this information, then consider asking someone else until someone says yes!
- Work colleagues: Another good choice would be coworkers who may also want some extra cash flow from investing in real estate deals–whether as a lender, offering you a loan for a fixed return, or possibly as a joint venture partner, taking a bigger slice of the pie for a bigger share of the risk.
Property sellers – what will they use the money for?
When you’re talking to a seller, ask them what they plan on doing with the money after they sell. Perhaps they’re renovating their home or paying off debt. However, if they’re simply putting the money in the bank, you might be able to offer them a much better return by lending you the money at a rate higher than inflation to use to buy property – it’s a win-win for both parties!
Vendor financing – do they need all the money now?
Vendor financing is a great way to get private funding for your real estate deals. Some vendors may be willing be willing to lend YOU the deposit to buy their property!
They key question to ask is, “do you need all the money now?”
There are come technicalities to how this is done – make sure you chat with your broker to get this strategy right!
You can find private funding for your real estate deals.
You can find private funding for your real estate deals.
It may take some research and creativity, but there are many different ways to find private funding to top-up your real estate deals.
Conclusion
As you can see, there are plenty of places to find private funding for your real estate deals. It’s up to you how much time and effort you want to put into finding this money, but it’s definitely worth doing if it means you can do more deals – especially if you’re short on your own investment capital to put into deals.
