Private Money Sources
Private Money
Private Money will enable you to purchase real estate without contributing a penny out of your own pocket.
Seller FinancingSeller financing presents the real estate investor with numerous advantages. In fact, it is the absolute best way to get the money you need to purchase the seller's property.
Subject to Real Estate Investing
The short explanation of subject to real estate investing is purchasing the home subject to an existing mortgage.
Private Investors Money Lenders
Private investors money lenders are different from partners, and all of the money you will ever need you can find from investors.
Real Estate Promissory NoteA promissory note is simply an I.O.U. It is an agreement to pay a certain amount of money at a specific time or in payments.
Real Estate Business Partners
Real Estate Business Partners is at the bottom of the list for ways to find private money.
Private Investors Money Lenders
Buying Real Estate with Private Money

Private investors money lenders are different from real estate business partners. The main difference is that with a partnership you are in it together, investors don’t have any ownership. They just loan you some money. In fact, all of the money you will ever need you can find from investors.
Investors want security, a good return on their investment and liquidity. You can give them all three of those things with real estate.
"Buying Real Estate with Private Money "
Looking for Investors
When you go out to look for investors, it’s very important that you follow the law, or you could end up in a nice striped suit. Be careful how you word your ads, or you will have the SEC all over you. The most common errors in raising money are:
- Paying commissions for somebody to find you money. You can’t do that! That’s illegal.
- Receiving commissions for finding somebody else money
- Poor or no disclosure
- General solicitation
- Making false promises

To avoid lawsuits and broken bones, only deal with investors and partners that can afford to lose the money. Don’t partner with anybody that doesn’t have a million dollars. If they are not a millionaire, they cannot afford to lose that money.
Remember to put everything in writing, and over disclose. Tell them what the risks are, up front and in writing. Get them to sign it. Even if they have a million dollars or more and can afford to lose it, put everything in writing.
Finding Private Investors Money Lenders
The easy way to find Private Investors Money Lenders is to ask people for referrals of anyone they know “who would like to make 10-12% return on their investment secured by real estate?” You need to say that to a lot of people. If you can learn to put that in your conversation, you will have all the money you will ever need for real estate investing…providing you can find good deals.
- Ask “Do you know anyone who…”
- Run ads in papers and tabloids, but be careful
- Attend investment club meetings
- Talk with everyone you meet
- Search the web
- Do a website
The Way to Advertise
You run an ad that says something like this:

That’s an ad for an investor, and investors are going to call. When they call, you say:
If you do that about 10 times you have about $800,000 sitting there waiting for you to go get. It’s not quite that easy to do, but it works, and it’s a skill that you have to learn to perfect.
Make a List of Prospects
In order to get even one or two investors, you have to contact a lot of people. If you ask that “Do you know?” question, you can ask everyone you meet. You can ask your doctor, attorney, mentor, dentist, psychiatrist…

To learn about the different investor options and more ideas for finding Private Investors Money Lenders you need to get Dennis J. Henson’s exciting teaching “Private Money”. Listen to the audio lecture and follow along with the student handout, or read the class transcript and learn the best way to find the money you need for your real estate investing.
Finding money is a skill that will make your real estate investing endeavors successful. Dennis J. Henson's "Private Money" teaches you:

- the skills you need
- the legalities
- the pitfalls to avoid
- the intricacies of promissory notes
- seller subject to
- and dealing with private investors
If you want to succeed at real estate investing, this is a learning tool you cannot afford to pass up.

