Raising Private Capital

How to Structure Your Deals

OPM (Other Peoples Money)

Learning how to raise private capital funds is a absolute must for every investor that plans to scale their business. Private capital partners will allow your business to grow because you will have more money to make more purchases. Private Money can be very helpful especially when you are beginning your real estate investing business. It will allow you to grow very quickly , and will also allow your investors to make good returns on their investment. Usually private money will cost approx. 9-12% interest, and is usually paid back upon the resale of the property. 

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Example of a Private Money Raising Post on Bigger Pockets:

(Photo of property or link to property profile)

Address: 123 Main St

Capital Raise amount: $100,000

Rate: 10%

Term: 6-12 Months

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A great place to find Private Money Lenders is on BiggerPockets. Announce that you're looking for Private Money, and provide them with similar information as to the above. Remember to always communicate with your partner, coach, or mentor about raising private capital, to make sure you the rate is fair.

Here is an example