Private lenders are people—just like you and me—who are interested in real estate and would like to earn money from it. The one difference between the private lender and the real estate entrepreneur is this: 

Private lenders have funds of their own or funds from investors who want to invest in multi-unit real estate as silent partners. The private lender is working alone and is not governed by the banking laws, except for the usury limits on the amount of interest that can be charged on the loans they make. And private lenders rarely do a credit check on their borrowers. Instead, the private lender relies on a personal opinion of the borrower and the borrower's real estate project when making a loan decision.

For example, I'm a private lender research specialist. I find private lenders for a variety of real estate projects. This research is in addition to my own real estate activities—which include ownership, investing, consulting, writing, publishing and lecturing on real estate.

The real estate loans I find as a private-lender researcher that have been made have all been repaid in full and on time. My specialty in loan finding is down payment loans with a term of one day to seven years. (Yes, I see a few one-day loans!) These down payment loans help real estate investor get started in their multi-unit real estate wealth building.

Here are tips to get best results with private lenders:

* Have a specific proposal with full details of the multi-unit property, its price, income, expenses, and down payment.

* Provide a short write-up detailing why the multi-unit property is a good investment for both you and the lender. Project future earnings and profits.

* Give full details on your personal wealth-building activities. Private lenders love to hear of the exploits of their borrowers. Such stories are told by the lender to friends—over and over again. Your interesting multi-unit story could get you your loan— even when your credit is shaky.

* Meet personally with the lender, if you're requested to do so. Again, the lender wants to "eyeball" the loan applicant (you) to get an idea about your energy, drive, ambition, and future plans. So don't be bashful—your lender is really interested if he/she requests a face-to-face meeting!

* Try to "sell" your private lender on your deal. Private lenders often see themselves as "saviors" of investors —that is, they are helping beginners get started on an important journey in the real estate investor career. As a savior, they love being an important element in your multi-unit success story. Convince your private lender of the soundness of your multi-unit deal and you'll get your money!

 

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