How Do I Become a Private Money Investor?
Private Money Investors typically invest in 1st trust deeds up to 65% of the value of the real estate being collateralized. Many Private Money Investors earn an annual return of 9.99% – 12.99% depending on risk of the deal, the borrower’s credit background and prior experience as well as the overall risk of the deal being funded.
How Do I Get A Private Money Investor to Fund My Real Estate Deal?
Listing your private money loan scenario on PrivateInvestor.com is a good start in obtaining funding for your
real estate project. When submitting your loan scenario it’s always good to stage your deal
properly….as they say, “You only have one chance to make a first impression”, to be successful in
obtaining funding this saying holds very true. You should always provide as much information as
possible regarding your deal to include interior and exterior photos at a minimum. These photos should
show the true condition of the property in its current state. To obtain preliminary interest be sure
to provide any prior experience, as well as an brief explanation as to how you plan to pay off the loan.
Keep in mind that all requests should include a viable exit strategy as all private investors will want
to know this before they agree to make you a loan offer. Some other items that you can expect to
provide at a minimum include the following:
– 1003 Loan Application or Personal Financial Statement
– Clear and Legible Photo ID’s of All Borrowers
– Copy of Executed Purchase Contract
– Copy of Articles of Incorporation
– Copy of By-Laws if Corp
– Copy of Operating Agreement if LLC.
– Proof of Down Payment Funds
– If Rehab deal include Repairs w/Cost Estimate
– Brief Explanation Regarding Exit Strategy
The Private Investor may require other items as necessary however, typically the items above are needed
to obtain a loan commitment.