Lenders on Private Money Goldmine indicated an interest in lending on real estate, but each lender is different.
Each lender has different criteria and terms, so it's best for you to ask them directly. That said, we have found that lenders are willing to lend on a wide range of deals, regardless of your credit or experience, as long as they will get a good return on their investment. However, Private Lenders are not the right people to contact for personal loans, home mortgage or home refinance loans, emergency loans, or small business loans.
The great thing about private lending is the ability to negotiate the terms of the deal to create a win/win scenario.
The more prepared you are with your information, the easier it will be to secure a loan.
Here are some tips:
- Make sure you have a portfolio or a credibility kit available to lenders. You can learn more about this in the members area of the website.
- Ask for referrals or recommendations from past deals that you can share with potential lenders.
- Do your due diligence on the deal in advance, know exactly what you need to make the deal happen and a clearly defined exit strategy. This will be key in getting lenders comfortable to work with you.
- Have your contractors ready to act quickly.
- Do your homework and make sure you understand the unique nature of private lending. Become familiar with what terms and fees to expect before you start reaching out to investors.
- Never send upfront money to a lender for any reason.