There comes a time in a real estate investors career that he would need
private money lenders. An investor might stumble into a great deal while he is in the middle of a rehab project. In order to not miss out on a great opportunity, he needs funds to close the deal. This is where private hard money lenders come in.
A private money lender is a person who lends money to investors, entrepreneurs, and even ordinary persons who are dire need of cash in a quick amount of time. Although the term private money lenders are used interchangeably with hard money lenders (companies that provide real estate loans), the term private money lender will be used exclusively here as an individual, not a company.
Anybody could be a private money lender. Well at least anybody who has spare cash, or in other words, anybody who is rich enough to invest his money into private money lending. Bank executives, chief executive officers, businessmen, a regular corporate worker who inherited a large fortune. Anyone of them could be a lender. Even your neighbor could be a private money lender.
The thing to remember here is that these individuals dont often openly advertise their services. This makes searching for private hard money lenders harder than usual. So if youre searching for a private lender, heres a list of some of the best ways to find private money lenders.
REI Clubs. Real estate investing clubs are a great source of private
hard money lenders. In fact, many private lenders actually belong to REI clubs. Aside from access to their network of lenders, these groups can also help you in all aspects of real estate investing, from dealing with contractors to finding a title company.
Internet. The Internet is also an excellent place to find lenders. Nowadays, a lot of lenders are using the power of the Internet to promote their businesses. Just search for the term private money lenders in search engines such as Google and youll probably end up with dozens of choices. However, if you want to find a private hard money lender right in your area, you can visit
www.RehabHardMoney.com, which features a large database of lenders located across the country.
Fellow Investors. Another terrific source of lenders are your fellow real estate investors, especially those who have been in the business for a number of years. It never hurts to ask an investor for referrals of private money lenders even if youve met them only for the first time.
