Utilizing Private Lenders
I recently attended an Alan Cowgill presentation where he talked about how to attract and market to private lenders. The private lenders he was referring to are not the usual "hard money" lenders that we frequently refer to.
He was referring to family, friends and other people we know that have CD's or other investment capital that they might be interested in loaning to you for an attractive interest rate (because they are currently receiving a very low rate - especially CD's). I have heard John Ulmer, Louis Brown and Ron LeGrand speak on the same topic.
I want to know if anyone out there has had any success in raising private capital utilizing Cowgill, Brown or Ulmers methodology?
Also, has anyone out there utilized Equities Trust Company as a custodian for a ROTH IRA that is allowed to purchase real estate OR utilizing Equities Trust Co. "private banking" method to borrow other people's IRA money to purchase real estate.
I haven't personally attempted to secure a loan from my friends and/or family, but some of the specific vehicles you're discussing have tax consequences beyond the low interest rate - in addition to going from a guaranteed investment to a riskier position. If someone's got money in CDs, chances are they have a very low risk tolerance, and this kind of investment vehicle (meaning your real estate venture) may not appeal to them.
I've always held to the philosophy that one of the best ways to lose a friend is to borrow money from them...but that could very well just be my problem!