Posted by DougO(NM) on February 24, 2000 at 21:23:56:
I suggest calling them, tell them you are saw their add. Next ask them what kind of projects they are interested in doing, and what kind of terms you can expect. Next you will want to know how much they are comfortable investing in any one deal, especially the first couple of times (that number could change if you do good!) You also want to find out in a polite way, how long they have been doing this, what they do to get their money to loan, and how fast they can move.
For example, I spoke with a gentleman the other day who said that on a rehab or foreclosure kind of deal, he would loan me up to 65% to purchase the home and charge 15%. I do the work and supply the fix-up money.
(And followed that up by telling nme that every deal is different, and he’ll do just about anything that makes sense, so there 'ya go)He’s been doing this kind of thing for a long time, and turns out is known in the cashflow (note buying) industry
Good Luck
Doug
i am preparing to start a new phase to my investing…rehabs, need to generate some cash. anyway, i want to approach this investor who put his ad in the paper for money to lend. any advice on how to pitch the deal or some do/do not’s? i don’t have a specific deal ready to go right now, but i would like to set it up in advance. what’s typical return on invested cash? I just lost out on one because i didn’t have access to fast cash. any help appreciated.
Re: approaching private lender - Posted by Shawn(ATL)
Posted by Shawn(ATL) on February 27, 2000 at 22:36:44:
What Doug said was right you just have to call them to find out what kind of deals they are interested in. Most of the hard money lenders don’t want to see you unless you have a sales agreement. Most of them will lend you 60-65% of the after repair value. Which means it is in your interest to find homes that you can purchase and fix up in that boundary. Many of them are very relaxed on credit, and don’t care how much you make. They are buying into the deal. But all in all try to use as little of your money as possible. On your first deal with most of them I have found want cash for some of the closing cost on your first deal. Do good by them and repair as quick as possible and you should have a very profitable future.