{"id":1202,"date":"2022-07-10T07:00:00","date_gmt":"2022-07-10T14:00:00","guid":{"rendered":"https:\/\/crivellocapital.com\/?p=1202"},"modified":"2022-06-30T13:00:00","modified_gmt":"2022-06-30T20:00:00","slug":"how-to-get-a-private-investor-to-give-me-money","status":"publish","type":"post","link":"https:\/\/crivellocapital.com\/how-to-get-a-private-investor-to-give-me-money\/","title":{"rendered":"How to Get a Private Investor to Give Me Money"},"content":{"rendered":"\n
Although private investors can fund many types of loans, they most commonly fund personal loans and real estate loans.<\/p>\n\n\n\n
For business owners, private loans can be an attractive alternative to bank loans as they are time-efficient, flexible, and, in the approval process, often prioritize collateral or projects over credit history.<\/p>\n\n\n\n
Read on to learn more about private investors and how to get a private investor to give you money. <\/p>\n\n\n\n
A private lender or private investor uses their private capital to finance investments. Private investors work directly with borrowers and are not affiliated with a financial institution.<\/p>\n\n\n\n
In terms of real estate investments, private investors can be used for both long-term and short-term investments. For example, a private investor may:<\/p>\n\n\n\n
Private investors provide quicker approval turnaround and more lenient restrictions when compared to traditional lending options like banks and credit unions. A traditional lender may take weeks or even months to approve a loan, whereas private investors can offer borrowers access to funds within mere days.<\/p>\n\n\n\n
Additionally, private investors may prioritize the project or collateral in deciding whether to extend a loan to the borrower, instead of only taking factors such as a poor credit score into consideration.<\/p>\n\n\n\n
Now that we\u2019ve covered what private investors are and the benefits of using one, let\u2019s answer the question we all know you came for.<\/p>\n\n\n\n
We\u2019ll break down the process of borrowing funds from a private investor into seven simple steps.<\/p>\n\n\n
First, you need to understand private loans. Private loans work similarly to traditional bank loans: The borrower applies and if approved, receives funding, spends this funding on a specific project, then pays the borrowed amount back in installments with interest.<\/p>\n\n\n\n
The borrower should know what financial information the private investor will need to complete a transaction. Have this information organized and readily available for a better shot at getting the money you need.<\/p>\n\n\n\n
For example, when it comes to real estate, a private lender would likely want to review the property they\u2019re investing in. The borrower should have these details prepared ahead of time.<\/p>\n\n\n\n
This is where you create your pitch, which should include a company overview covering your story, education, goals, experience, past accomplishments, and business plan. For instance, if you are a pro house flipper, you should consider including successful property flips in your pitch.<\/p>\n\n\n\n
When researching private investors, you may notice the terms \u2018primary circle\u2019 and \u2018secondary circle\u2019 thrown around. These terms suggest that many private investors personally know the borrowers through friends or family before they make a deal.<\/p>\n\n\n\n
Unlike banks, private investors work directly with borrowers. This arrangement means the relationship between the investor and borrower is important. Do your research to find a few investors who might be a good fit for your business.<\/p>\n\n\n\n
Surely, the prospective investor will have questions.<\/p>\n\n\n\n
The private investor may be concerned with profit splits, timelines, or the details surrounding the process of the loan. The investor may ask questions such as:<\/p>\n\n\n\n
When questions are asked, provide clear, confident, and honest answers. Don\u2019t sweat it\u2013you\u2019ve prepared in advance.<\/p>\n\n\n\n
Crivello<\/a> Capital<\/a> is a private investment group focused on making communities better and impacting the lives of business owners through capital investment. Read on to learn how we can help you build your business<\/a>.<\/p>\n\n\n\n