How to Find a Private Lender to Buy Real Estate and Build Wealth
The video discusses the process of finding and working with private lenders for real estate investments. Private lenders are everyday people who are looking to diversify their investments and get a good return on their money. They are typically in their mid to upper 40s or lower 50s, have stable careers, and can be found through personal networks or referrals. When approaching private lenders, it is important to talk about real estate with passion and openness to attract those interested in investing. Private lenders look for a connection and trust, as well as a solid investment opportunity with a good potential return on investment. Factors such as location, market conditions, and the borrower's experience and track record are considered. Private lenders also want their investment to be secured by collateral, such as the property itself. Having a pre-existing relationship or connection with private lenders is crucial, as they are unlikely to give money to someone they don't know. These connections can be through family, friends, or acquaintances. Private lenders also consider the specifics of the deal and want to see that it is a solid investment opportunity. When working with private lenders, it is important to personally guarantee the loan, sign a promissory note, add the lender as an additional insured on the insurance policy, and potentially allow them to put a lien on the property. These measures provide private lenders with confidence in their investment and multiple layers of protection. Overall, private lenders are everyday people with extra money to invest, and finding and working with them requires building relationships, presenting solid investment opportunities, and providing security for their investment.