Finding Qualified Borrowers to Increase Your Private Lending Deal Flow
July 6, 2021
You’ve just funded your first handful of private money deals and now you are hooked! If you’re like me, you fell in love with the act of sleuthing out a loan request and doing your due diligence on the borrower, their project, and the property being used as collateral. It is like a 1000 piece virtual puzzle with a handsome monthly reward at the end of it. In fact, your enthusiasm for private lending has become so infectious now you have friends, colleagues and family seeking you out to place their funds into a secured private money loan for passive income.
But with success comes more obligation. Finding one or two deals to place your own money is the (somewhat) easy part but how do you create consistent deal flow when your capital sources are limited? Most private lenders looking to scale shy away from traditional advertising channels for fear of not being able to fulfill loan requests with capital from your growing sources. The age old problem of supply and demand, right?
Here are some affordable ways to create more deal flow to help you find deals to fund with OPM (other people’s money) as you continue to build your private lending practice.