Learn How To Start Investing In Real Estate
Learn How To Start Investing In Real Estate

4 Ways to Find Private Mortgage Money

Written by Than Merrill

Still searching for private mortgage money to get started in real estate investing, to close that next deal or just take your business to the next level?

Even if you walked out of foreclosure yesterday, have a credit score of 450, or you’re just struggling to makes ends meet, there are an enormous amount of funds available for real estate investing. You just need to know where to look.

If you throw out conventional mortgage lending, hard money lenders, commercial loans and generic crowdfunding platforms, you still shouldn’t be coming short on cash (provided you’ve invested in your real estate education and have the right systems in place).

So open your wallets, have your bank routing number handy to dish out for incoming wires, and get ready to crank out some offers, as you’ll find pallets of private mortgage money from these 4 sources alone:

1. Transactional Funding

Have you been under the impression that 100% financing was dead? Transactional funding offers 100% LTV plus closings costs with no appraisal, credit or income required. Oh, and you can close in less than a week. Think that’s a dream come true? Many real estate investing pros still consider this a last option, suggesting there are even better solutions out there.

2. JVs 

There are an amazing number of private individuals out there all over the country just itching to get their cash into real estate investments. Unfortunately many don’t have the expertise or time you do. Some certainly might not be turned on by high single digit or even low double digit annual returns and regular income checks, they want to taste the thrill of the deal and enjoy a shot at bigger things. So why not let them in on a joint venture and split the deal in exchange for using their cash?

3. Family

Many investors shy away from doing business with family because they don’t want to step foot anywhere near anything that could strain relationships. While that’s totally understandable, most of the time the end result will benefit both parties. You could do more harm holding out on them by not letting them in on the incredible returns and wealth you are generating. Also, if they’re offering and you won’t take their money, they’ll find another investor that will be more than happy to put it to work but might not be as careful with it.

4. Niche VCs & Angel Investors

AngelList is a great resource that connects start up companies with investors, and brags of making over 7,000 introductions and raising over $10.5 million for investors in just the first 9 days of this month. Be sure to check it out if you haven’t already.

You’ll also find great results and faster funding by honing in on niche venture capital funds. There are pools of them everywhere eager to get their money working. A lot of them are looking to invest in the local community, real estate specific funds or even faith based funding groups.