We have been a part of this industry for years, know it inside out, and although you will find plenty of reliable private money lenders willing to help you, like every industry, not everyone is right for your needs.
And since, this is going to be your first experience, seeking out a lender who can provide you with the funds for your first flip, you need to make sure that the lender you are working with is fair and ethical in his dealings.
The question is:
How to find a reliable private money lender for your first flip?
There are two possible strategies that you can opt for.
1) Ask for Help from People Already in the Business
You might be new in your industry, but real estate flipping is an established market in the US. There are many real estate investors who have been in the business of flipping properties, resourcing years of experience in the field. You can approach them and ask for help. After all, every real estate flipper who now owns a fortune, once started from the very bottom, reaching out private money lenders to help them in their first breakthrough—just like you. And, they still continue to do so after building a formidable professional relationship with them.
You can ask them for referrals and they should be able to guide you; some might even introduce you to the lenders they rely on, making things easier for you.
If you don’t have a network of your own, check out established online communities like, CAZA Investor Network, that has more than 7000 members, all willing to educate, help and inspire newcomers like you, to become a real estate investing pro.
2) Research Online
This approach is slightly different from the previous one, but it can be exercised in unison. With this strategy, you submit to your online research skills.
With the help of Google, social media platforms, online forums and online listings, you will search private money lenders by location, and reviewing their history, you should be able to establish a fair idea of a lender’s credibility.
You can visit their websites and look out for any testimonials that you can find. If not convinced, you can also drop them an email and request them to provide information about their client portfolio.
You can further access their social media profiles, walk through their followers and mentions, and try contacting the clients for further details.
In addition to that, you can also navigate through the services mentioned on their website and factoring everything in, you can then decide which one to approach.
If you already have a list of hard money lenders, created by following the previous approach, you can refine your list by researching the proposed suggestions online.
Select a reputable and trustworthy private money lender in your area, and prepare a pitch that would convince them to grant you a loan for your first flip.
If you have any questions about private loans and the process in general, check out this helpful post to expand your understanding on the subject.