I got a call last week from a friend of mine. More than a friend, really – a partner. He had a real estate deal he wanted me to look at, and I happily accepted. This isn’t the first time he’s called me for a deal, and it probably won’t be the last.
Who is my friend, and what does this story have to do with private money for real estate investing? He happens to be one of MY private lenders. I’ve been making Ben’s money work for over three years now, and I’m guessing he’s made – conservatively – over $12,000 in profit from the trades he loaned me money for.
Want to know the beautiful part of this story? Not only did I make a lot of money from the deals Ben lent me money for, but I also unlocked over $50,000 from the deals Ben brought to me. Talk about a great relationship, a relationship that both parties get something out of!
It all happened because I introduced myself to Ben and then introduced Ben to the concept of private lending for real estate transactions. Private lending created relationships that would never have happened if I relied solely on institutional financing for my real estate transactions.
Nor is Ben the only example. I have another private lender who offered me a deal, and I have a few others who have told me that they are actively seeking deals for me because they know they will earn a finder’s fee, as well as the possibility of lending me money for the business.
The offers Ben brings me are offers I never would have had if I hadn’t known Ben. It’s called leveraging the relationship, and it’s reason number five to use private money to invest in real estate.
