Raising capital for real estate is at some point what every investor must do. When you’re buying your first rental property, you can easily use your cash savings or a conventional loan to close on the property. But, on your second, third, fourth, or one-hundredth deal, finding the money (or financing) to get the deal done may start to get a little difficult. So how do you come up with the money to buy more rental properties, house flips, or commercial real estate, WITHOUT asking your parents, grandma, or friends for cash?
Amy Mahjoory has raised $20M from private money lenders, none of which are related to her (she makes sure of that). Think of Amy as a capital connector, getting to know as many existing, or potential, private money lenders as possible. We know what you’re thinking, “private money lending sounds complicated, don’t only big investors do that?” Think of a private money lender as anyone who has money, isn’t doing much with it, and wants to make more of it.
These lenders could be your taxi driver, your dentist, or maybe a friend of a friend. Private money is all around you, and if financing or cash reserves is what’s stopping you from doing more deals, we urge you to take the four steps that Amy outlines today. There’s a good chance you already know a private money lender!
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Join BiggerPockets for FREE:
https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none
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Access Brandon Turner’s Free Masterclass:
https://www.biggerpockets.com/reshow?utm_source=youtube&utm_medium=description&utm_campaign=none
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Grab the Book “Raising Private Capital”:
https://store.biggerpockets.com/products/raising-private-capital?utm_source=youtube&utm_medium=description&utm_campaign=none
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How to Find Private Money Lenders and Finance Your Deals:
https://www.biggerpockets.com/blog/find-private-money-lenders?utm_source=youtube&utm_medium=description&utm_campaign=none
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10 Ways to Build a Reputation as Your Market’s Premier Real Estate Investor:
https://www.biggerpockets.com/blog/2015-04-20-ways-build-reputation-premier-real-estate-investor?utm_source=youtube&utm_medium=description&utm_campaign=none
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Hard Money vs. Private Money:
https://www.biggerpockets.com/blog/hard-money-vs-private-money?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Amy:
Website: https://amymahjoory.com/
LinkedIn: https://www.linkedin.com/in/amy-mahjoory-bb299511
Instagram: @amymahjoory or https://www.instagram.com/amymahjoory/
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Connect with Rob (Robuilt) on Youtube, Instagram, Tiktok, and Twitter:
Youtube: https://www.youtube.com/c/Robuilt
Instagram: https://www.instagram.com/robuilt/
TikTok: https://www.tiktok.com/@robuilto
Twitter: https://mobile.twitter.com/robuiltchannel
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Connect with David and Rob on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow David on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/
Episode 626
Show notes at: https://www.biggerpockets.com/blog/real-estate-636?utm_source=youtube&utm_medium=description&utm_campaign=none
00:00 Intro
02:14 Quick Tip
03:31 Fixing, Flipping, and Passive Investing
09:26 Building a Reputation Worth Raising Money
13:25 The 4-Second “Power Pitch” for Private Money
23:23 Contracts, Notes, and Mortgages
25:56 Mitigating the Fears of a Potential Lender
32:34 How to Start Raising Private Money
42:25 Building the Foundation (and Friendships)
#biggerpockets #realestatepodcast #ep626
