Sellers Can Be One Of Your Best Sources Of Private Money

If you’re having difficulty finding private money, you may have been overlooking a source that has been right under your nose the whole time….sellers! I stumbled upon this by accident several years back. I purchased a property from a landlord, and he offered to finance the property himself. He liked the idea of getting monthly payments at a higher price than I could pay cash. Since he lived nearby, I would often hand-deliver the payments to him and we would spend some time discussing real estate and life in general. After several months of this, he approached ME about investing. It was an a-ha moment. He was a retired real estate investor, liked the idea of receiving monthly income, but didn’t like the management. A perfect situation, and a true win-win.

Sellers of free and clear properties are another good source. After all, even if you don’t end up buying the house, someone eventually will, and there will be a whole bunch of cash that the seller will have to do something with.

Now, you need to keep in mind that the SEC has rules which dictate who you can approach for private money, so you need to establish a relationship with them before discussing investing, among other things which are beyond the scope of this blog post. BUT, the moral of the story is sometimes you’re 2 inches from gold and you might not even know it. Happy investing!

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