Find a Hard Money Investor

Where do you look for a hard money investor?

Theyre everywhere. The first thing I would suggest would be to look in the real estate section of the Sunday classifieds. If you look under real estate miscellaneous or other, there are probably a few ads saying theyre an investor with money to lend for real estate. It may say up to 70% market retail value and using the property as collateral.

You dont even need credit or cash for the real estate deal. Just make sure you find some of these hard money investors before you get a bunch of deals going. You want to have all your ducks in a row first.

Another way to find hard money investors in your area would be to join a local real estate investment club. There are going to be a bunch of investors there with money that would lend their money to you if you got a great deal. They typically want 12-15% interest on it. It doesnt matter what the interest rate is as long as you can get the money to snap up the property and resell it or flip it to another investor. Or you may want to use that money to buy it and fix it up.

A third way to find a hard money investor would be to network. Network with people that are in the real estate business such as real estate attorneys, title company representatives, real estate agents, bankers, etc. They may know of someone and will be glad to refer you to a hard money investor.

Fourth way is if youre in a hurry and youve already got the deal is to advertise in a Sunday classified. Put something like Hard Money Investor Wanted real estate as collateral, 12-15% interest, short-term loan 6 mos to a year. Put your phone number. You phone will probably ring off the hook. Most people arent getting that kind of return on their money letting it sit in the bank savings account or CDs.

A fifth way is to ask family and friends if they would like to partner up with you on a few real estate deals. Preferably someone who has money or equity in their house. You sign a contract with them and make everything legitimate like you would if you didnt know them to prevent arguments and hurt feelings in the future. After all, this is other people's money and if youre not careful, you might lose a friend or anger a relative. You need to spell out all the terms and conditions in the contract such as loan amount, % of interest, how frequently and when theyre getting paid, how long the loan is, collateral, they get a lien on the property, etc. You might even want to have an attorney draft up the document. The contract should cost a few hundred dollars to have it done by an attorney.