Private Money Secrets Every Wholesaler Must Know! #shorts #realestate

Name: Private Money Secrets Every Wholesaler Must Know! #shorts #realestate
Uploaded: 2025-03-10T21:01:45+00:00
Duration: 29 s
Channel: Nathan Payne
Description: In this YouTube short, Nathan Payne and a co‑speaker discuss how wholesalers should approach private money lenders. They emphasize that unlike hard‑money…

10 Mar 2025 · 0 min

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In this YouTube short, Nathan Payne and a co‑speaker discuss how wholesalers should approach private money lenders. They emphasize that unlike hard‑money lenders, private lenders are relationship‑driven; the borrower must make the lender feel comfortable that their capital is safe. The speakers advise showing the lender the current market value of the property (e.g., $450‑$460k) to demonstrate that the loan is backed by a solid asset. They also note that even a second‑position private loan is well protected when the deal has substantial equity, providing an extra safety cushion for the lender.

The biggest thing, Nathan, and you did a great job of this, is with private money, you really want to make that person feel comfortable in you, in the deal. It's now about the relationship with private money. Hard money, they don't care about you. They're just looking at the numbers. If it makes sense, they underwrite it, and that's their business model. But not private money. Private money is very relationship-driven. So you have to do a really good job helping that person feel comfortable that their money's secure, it's safe, you know what you're doing, it's a good deal. How they're going to get paid back and all of that.
And what I did is I showed them the deal. I said, hey, look, this house is worth right now. If we just sold it, you know, $450,000, $460,000, I have it at this price. So your money, no matter what, guys, it's backed in a great asset.
Even in a second position, it's very protected because you've got so much equity on the deal.