How I Raised a Quarter of a Million Dollars?

I haven’t talked about financing too much lately, but I thought I would share some details on how I was able to raise some money recently.

It all started on a real estate site I visit regularly BiggerPockets, which is my favorite and the best real estate forum on the internet.  Josh really does a great job of keeping spam off the site and has really built a strong community of investors.

As I said, I was getting my daily fix on BiggerPockets and I saw a gentleman from Southern California posted a thread that he was looking for wholesale deals that he could buy and flip.  I send him a message with some deals I have available at the time and before you know it we had an hour long phone conversation about the industry and what’s going on.  I pitched him on a couple deals I had at the time.

He gave me a big clue that one of his major motivations was he had funds available but no deals.  I pitched him on a creative solution to solve both our problems, I needed some funds for a project and he had excess money.   He liked the ROI I was offering and immediately came to visit the property I was looking for a loan on and at the same time wanted to see some of my other rehabs.  The conversation went well and before you know it, we had a deal.

Deal #1 – Short-Term Second Mortgage, with Guaranteed Interest Rate and a Percentage of the Profits

We continued to talk and about a month after Deal #1 was financed and he some additional money he was looking to invest.

Deal #2 – Open Ended Rental Financing at a Fixed Rate of Return (can be called or repaid at anytime with 45 days notice)

About two months the same investor’s friend had some money he wanted to invest.

Deal #3 – Private Money Loan on a Flip with all Payments Deferred to Payoff

All three deals where creative ways to borrow money for this business and have been a win-win for all parties involved.

If you haven’t already heard of BiggerPockets, go there now!  It’s a great site.

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5 Responses to “ How I Raised a Quarter of a Million Dollars? ”

  1. Steve – I love reading all the different ways that people have used our site to build or improve their businesses. Thanks for sharing your story. We’ll see you back on BiggerPockets!

  2. Win! Win! Win for everybody involved! Nicely done Steve!

  3. Jason Gray says:

    Great work.

    We’re doing great too. One more house to sell before our private lender will open up the flood gates.

    I love private money. Works well for everyone.

    Keep it up.

    Holding & Gray Investments, LLC

  4. Mike Z says:

    Very Nice job!!! Post like this should be a kick in the pants for all the would be investors out there.

    When you find a good deal, have a track recorded, etc you can make dreams come true.

    As for Biggerpockets GREAT Site!!!

  5. stephen j. moore says:

    man this was a great job on both of your parts man

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