Are Private Lenders Easy To Find?
I have very little($2000) capital to start buying income producing properties. How and where do I find private lenders? The banks will not accept me because I do not have the down payment. :-?
seems to be a lot of peoples quest I for one have been looking myself and still have not found one I would work with...
Hi Guys,
Private lenders who trust you enough to let you have control of their money may be hard to find. I'm still fairly new at this myself, and I've been using hard money lenders (you can find some on the internet). Their money is expensive (15-18%), but for a short term flip it is cheaper/even with a loan when you take closing costs into account.
Most lenders will require that you put at least 5-10% of your own money in, and they'll finance the rest. That makes sure that you are invested too and they aren't out on the line.
It certanly helps to have a bit or capital. I dropped all my expenses for a year and sold my 2nd car to save every penny I could to come up with the 10% down they wanted. Depending on your situation, there may be some sacrifices you can make to increase your capital.
Good luck with it!
[addsig]