Raising capital for real estate is at some point what every investor must do. When you’re buying your first rental property, you can easily use your cash savings or a conventional loan to close on the property. But, on your second, third, fourth, or one-hundredth deal, finding the money (or financing) to get the deal done may start to get a little difficult. So how do you come up with the money to buy more rental properties, house flips, or commercial real estate, WITHOUT asking your parents, grandma, or friends for cash?
Amy Mahjoory has raised $20M from private money lenders, none of which are related to her (she makes sure of that). Think of Amy as a capital connector, getting to know as many existing, or potential, private money lenders as possible. We know what you’re thinking, “private money lending sounds complicated, don’t only big investors do that?” Think of a private money lender as anyone who has money, isn’t doing much with it, and wants to make more of it.
These lenders could be your taxi driver, your dentist, or maybe a friend of a friend. Private money is all around you, and if financing or cash reserves is what’s stopping you from doing more deals, we urge you to take the four steps that Amy outlines today. There’s a good chance you already know a private money lender!
David:
This is the BiggerPockets podcast, show 636.
Amy:
We always want to end every relevant conversation with a request for a referral. So if somebody says they love what you’re doing and they’d love to support you, but they’re not in a position to invest, just say, “Hey, no problem, do you happen to know anyone else who is interested in getting double digit returns backed by real estate? Let me know.” So I ended every single conversation when I first got started 10 years ago with a request for a referral and I did that for 18 months consistently.
David:
What’s going on everyone. This is David Greene, your host of the BiggerPockets podcast here today with…
