What’s the difference between private money and hard money? What’s a better fit? Where do you even find Private Money? How do you structure it and use it? Listen to Jordan Stanley Payne in his Multi Family Mafia podcast as he discusses private money basics.
Jordan starts this podcast by saying that he will make mistakes sometimes, and you can’t just always take his word for it. If something he says doesn’t fit your target market, double check with your accountant, double check with your attorney, double check with your title company.
It isn’t his job to keep up with your market in your state, that is why you hire a team to help you win. You build a team so that you will stay out of trouble and only win. Don’t be cheap – PAY THEM.
It keeps coming up over and over. What are private money basics? Jordan wrote a free ebook to help beginners navigate the water and bust the myth that private money is a unicorn.
There are literally hundreds of people around you that can become private money lenders around you. The only reason they aren’t now is that you didn’t open your mouth and talk to them about what you do. Tell people about what you do for the marketplace. Tell everyone how you are adding value and you WILL find people who are wanting to lend and do business with you.
Here’s how NOT to find private money lenders: make a vague post on Facebook to hundreds of strangers.
Let’s Identify some of the differences between a hard money broker and a private money lender:
Hard Money Broker
» You found them on Facebook
» They have a website
» They charge an application fee
» They run your credit
» There is an approval process
These are NOT the type of people you get to sit down and have coffee with. They target people who are NOT bankable and who are too lazy to find private money.
Listen to the rest of the podcast for ways to identify and approach private money lenders as Jordan discusses private money basics and gets you fired up to take action.