410: Fundamentals of Funding: How to Finance Real Estate Without the Big Banks w/Henry Washington

Real Estate Rookie

Private money is a “secret weapon” for real estate investing, allowing you to dodge the major banks and fund real estate deals on your terms. But just how easy is it to get this type of funding? The answer might surprise you. You don’t want to miss this masterclass on direct lending!

Welcome back to the Real Estate Rookie podcast! Concluding our three-part miniseries on the fundamentals of funding, we’re diving into direct lending with investor and fellow BiggerPockets host Henry Washington. In this episode, he covers the different types of direct lending options that are available to new investors—including private money and hard money—and discusses the many reasons why he uses them to build his own real estate portfolio!

Unfortunately, too many investors adopt a scarcity mindset and throw themselves at the mercy of any big bank that might finance their deals. Henry’s about to prove why lenders need YOU more than you might think and teach you how to craft the perfect private lending pitch from that position! He also shows you how to properly vet a lender and shares what you can do today to build relationships with the smaller lenders in your community!

In This Episode We Cover

How to obtain private money and get funding on your terms

Why lenders need YOU just as much (if not more) than you need them

Hard money versus private money (and which type of loan is right for you!)

How to properly vet a lender before giving them your business

How to craft the perfect pitch to a private money lender

The BEST ways to build relationships with smaller, local lenders

And So Much More!

(00:00) Intro

(01:17) What Is Direct Lending?

(05:53) Building Relationships

(11:55) How to Vet a Lender

(20:17) Working with Private Money

(28:14) The Perfect Private Money “Pitch”

(33:59) What If You Can’t Pay?

(40:00) Connect with Henry!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-410

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