If you want to build wealth, but you keep hitting dead ends when it comes to financing, it might be time to consider how private money can help you reach your goals. If you’re unfamiliar, this might sound bizarre, but the private money world is huge!
What exactly is private money? Private money refers to any money that you borrow from a non-bank. The source could be a relative, friend, or another real estate professional. The beauty of private money is that it’s not regulated by the government. This means you get to write your own rules, and set up a note that works for you!
However, this is not a free-for-all. It has to be a win-win scenario for you and your private money partner. Just because there are no rules doesn’t mean you can make a selfish deal. Especially if this is your first private money deal, you’re going to have to make it appealing for the lender.
When it comes to private financing, there is a whole world of money out there just waiting to be invested! If you go to a local real estate meetup you will meet lots of investors looking for partners. They may want to finance deals, or they may want help on existing deals. This is a great way to get started and find some private money partners.
To get started, you’ll need to work up the courage to walk into a meetup and start to befriend strangers. Yes, that is hard to do. I've done it. It takes courage to say that you're a real estate investor, especially when you're just getting started. The same can be said of any career. You have to start somewhere! Check meetup.com to find local real estate meetings.
If private money sounds like the right fit for you, there are some incredible resources you can use to learn more and land your first deal. First of all, you must check out Susan Lassiter Lyons! She has written an incredible book and course that contain tons of great strategies for securing private lending, getting in the right headspace, and so much more. Needless to say, we are huge fans of her philosophy and method.
Susan believes that all roads lead to private money, and her mission in life is to teach others about the power of private money. She posits it’s not a requirement to begin real estate investing with your own funds, and in fact, it’s absolutely appropriate to use other people’s investment capital for 100% of your investment.
She strives to teach others how simple private money can be, and the first step is overcoming fear. She explains that in order to achieve any caliber of success, it’s imperative to get in the right mindset. Many of us have negative feelings tied to the concept of money specifically.
That’s why Susan doesn’t like to use the word “borrow;” it conjures feelings of vulnerability and neediness. She also doesn’t use the term “private lender,” but instead, “private money partner.” By changing the dialogue, it puts the two parties on an equal playing field, as partners. Incredible way to change your mindset.
We’re so excited to share that Susan has so graciously decided to give you a free copy of her book! All you need to do is pay shipping. You can grab your copy (and check out her amazing course) here.
Additionally, on our YouTube channel we have an entire Private Money Series! I've created an entire playlist dedicated to finding private money. You'll learn how to create a credibility one sheet, how to decide how to compensate your lender, and you'll even see me set up a lunch meeting with a private lender.
As you begin to make your way through the Private Money Series, leave us some comments on those videos! I’d love to hear about your experience with private money, and how you plan to move forward on your wealth-building journey!