Finding great deals on houses you can flip in Philadelphia can be a lot of fun for real estate investors. However, they might not be able to close on as many of those deals as they’d like unless they also spend time finding private money lenders in Philadelphia.
While you might go to a bank to borrow money for a mortgage for your personal home, private money lenders in Philadelphia can help you borrow money to acquire and rehab investment properties. Not only that, those private money lenders in Philadelphia can do that without maxing out your personal capital or credit!
If your real estate investment business is going to start doing more deals than your personal capital will allow, you must learn how to close deals with other people’s money. To do that you need to find private money lenders in Philadelphia interested in funding the kind of real estate investment projects you’re doing.
Private money lenders in Philadelphia are looking for real estate investors who have proven themselves able to flip houses and make a good profit. So, where can you find these private money lenders in Philadelphia?
Some people look to their personal network of family, friends, colleagues, and peers. Perhaps you might know someone who has sold their businesses or has retired or has inherited money and now they’re looking to make investments with good rates of return. Maybe you know someone who is frustrated with the unpredictability of the stock markets. Others have learned that it’s possible to get a better rate of return by investing in real estate projects. How do you find these people who are ready to become or already are private money lenders? However, approaching the people you know to ask them for money could be challenging. They may trust you and like you but they may be worried about your ability to deliver on your goal.
Another option for private money lenders in Philadelphia is a hard money lender. This is an option if you don’t want to ask your friends and family for money, or if you have asked them and you still need more money for more deals.
Here’s how to find these private money lenders in Philadelphia:
- Get referrals from real estate agents you’ve worked with
- Ask other flippers
- Talk to people from your local real estate investors association (REIA)
- Google a phrase like “private money lenders in Philadelphia” to see who comes up
These hard money private lenders are usually more concerned about the deal and your rehab plan than about your credit score. And you may find it easier working with lenders who understand your work, know how to assess the risk and are confident because their investment is secured with a first deed of trust on the property.
Finding private money lenders in Philadelphia is how you can scale up your real estate investment business and flip more houses. Using only your own capital usually limits the number of houses you can flip, especially the number you can be simultaneously working on. There are private money lenders in Philadelphia who are looking to invest in rehab projects they know will give them a good return on their dollars.