Looking For Private Money For Real Estate Investing On The Internet

One of my readers, Jim, posted the following comment to the post below:

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Hi Tom,

Finding Private Money is something we are definitely trying to get because we have more properties than we have money for and we are tired of paying all the points for HM.

We have done some marketing to our subscriber base from our website (www.thegooddealguys.com) and have gotten a few bites but nothing solid yet.

My question is what type of information are these sites you searched on actually giving you. I need to find the people that can be Private Lenders and I have not found any site that can put me in contact with those kinds of people. Yes, people selling courses but that is not what I am looking for.

Any ideas?

Thanks,
Jim
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Here's my response, which I also emailed to Jim:

Hi Jim.

Thanks for your excellent comment and question.

To answer your question, I need to start out by telling you something you probably already know- the internet is extremely long on information, but extremely short on relationships and person-to-person contact.

The reason that's important is because borrowing private money for real estate investing, or for any other reason for that matter, is almost always going to be based on personal relationship, and personal relationships are best established and built locally.

The internet is a great place - probably the BEST place - to learn how to obtain private money, the mechanics of setting up a lender network, and a system for managing that network. The internet is not a very good SOURCE of private money. For that, you will need to think locally rather than globally.

The best source of private lenders for you and your business is right in your own town, city, or community.

My suggestion... use the internet to learn and implement a system for locating private money, even if you have to pay a few bucks for a GOOD system, then implement that system right there at home. As I'm sure you have already discovered, real estate investing is a people business, and the private money facet of it is no exception.

I believe it's nearly impossible to establish the level of trust required in private lending without face-to-face contact, which is essential to creating the right kind of relationship. Every Private Money course or kit I'm aware of that's worth it's salt will teach that, as well as showing you exactly HOW to build a private lender system right there at home.

Jim, it's important to point out that HARD MONEY is different. You can find hard money on the internet, because hard money lenders don't really care about you- it's just about the numbers. If the numbers work, they know they'll get their money no matter what. You pay big bucks for that privilege, as I'm sure you're aware.

Building a successful, local private money network takes a little time and effort, but the rewards are well worth it.

Hope that helps, Jim.

All the best.

Tom

Private Money For Real Estate Investing Best Sites

Searching for private money for real estate investing? Well then, you’re already in the right place… the internet! If you have spent much time online, browsing or doing concentrated searches, you have probably already found several websites that focus on using private money to fund your real estate deals.

One search you should do immediately is “private money for real estate investing.” The number of sites returned will blow you away. One recent search on Google yielded 6,150,000 results. Of course, not all of them are tightly focused on the topic – in fact, MOST probably aren’t – but the top 20-30 were very relevant. A few also turned out to have good information.

You could also try the shorter versions like “private money real estate” or just “private money”. I tried “private money” on MSN and got 36,543,981 results. Wow… try surfing those in an evening!

The great thing is, you really only need the first page or two of results to gather some top-notch information, much of it free or low-cost.

Don’t get confused by the term “hard money lender”. Hard money and private money are definitely two very different things. Hard money is a much higher cost option for higher-risk transactions.

Don’t be fooled by hard money sites masquerading as private money lenders. They’re NOT the same.

There is a place you can go for advice and information about developing a private money network of your own. Called simply private money for real estate investing, you can find it at http://www.private-money-real-estate-investing.com.

There is also a page of private money for real estate investing best sites.