How to Get a Private Lender to Say Yes — and other Creative Financing Tactics

2 min readMar 14, 2022

How to get a Private Lender to say Yes to you:

Have a deal ready

Find a good deal and present it clearly and effectively. Demonstrate how this relationship is win-win and has the potential to create long-term money

Not hanging with the right people.

Not building relationships.

Not analyzing the numbers properly.

Asking the lender to take on too much risk

Private lenders need to be secure in their investments, so make sure not to take on too much risk

Not presenting the deal right. A good presentation embodies the 5 C’s

There are literally increasing amounts of ways to get financing for real estate investing… it is up to you to try and figure out those different ways

Home equity -> you may be able to use the equity on your home and take it out for a next purchase

Home equity loan
Loan -> paid back in installments until the full amount is paid off
Home equity line of credit from your local bank or credit union
Works like a credit card
You may also see these loans as a second mortgage because a lender will place a lien on the property that is second place to the primary loan on your house

Partnerships:

Real estate partners can be invaluable
For splitting capital, responsibility, and compensating for lack of a certain skillset
Just make sure to be very careful in who you select as your partner and to get the partnership agreement in writing and contracted

And finally, Seller financing:

Can a great win-win solution for both the buyer and the seller
The title is transferred to the buyer but a lien is kept on the property, so the previous owner still has a vested interest in the property
Can be done without the bank, without paperwork, appraisal, or large down payment
The seller just has to agree to it, which there’s a solid reason as to why they will because the seller will go from owner to lender and receive monthly passive income checks every month