Can’t (or don’t want to) get a bank loan? We have another option for funding your real estate investments: private money lending! If your DTI (debt-to-income) is too high, you’ve maxed out how many mortgages you can get, or you need quick cash to finance a renovation, house flip, or BRRRR (buy, rehab, rent, refinance, repeat), private money loans can float you. Today, we’re sharing how to find a private money lender, what interest rates they charge, who these loans are best suited for, and what documents to bring to get approved.
Dave is out on a search to find the perfect pickle for his sandwich, so we brought in a seasoned investor and trusted Real Estate Rookie host, Ashley Kehr. Today, she’s invited her private money lender, James Dainard, to the show to explain how private money works, how much money you’ll need to put down, rates and terms you can expect, and red flags a lender looks for.
But this isn’t just for borrowers. If you’ve got a serious sum of cash and want to lend to investors and pocket the interest payment, James will show you how. Plus, Ashley shares her exact private money lending structure that she worked out with James on a recent deal he lent to her.
Ashley Kehr:
If you’re low on cash and your DTI is maxed out, there is another option to grow your real estate investing business. Private money. I know it can sound intimidating or expensive, but private money is one of the most powerful tools available to investors if you use it safely today, we’ll explain how. Hey everyone, I am Ashley Care filling in for Dave Meyer today as guest host of the BiggerPockets Real Estate podcast. Today I’m going to bring you all inside a private money deal to explain how it works and how you can use it to scale your portfolio. And I’m bringing on one of my favorite lenders to help me do it. I think you’ll recognize him because it’s James Dard. James, welcome back to the show
James Dainard:
How you always just hit me up for money. You…