How Do I Find a Lender Without Any History?

Today, I want to address one of the most common questions I hear, especially from new investors.

“How do I locate and obtain a private money loan without a past relationship with a lender or without ‘skin in the game.’”

In other words, where do people find lenders without an existing track record with a private money lender?

  • Maybe you’re just getting started and you think getting private money is going to be the biggest hurdle, and so you want to tackle that first. I get it! Here’s the thing, you’re starting in the wrong place. You don’t need a committed private money lender before you can go out to find a deal.


  • The only thing that matters in hard money lending is that you have a good deal. But I understand the confusion. Let’s run a scenario:

(This is what most people believe happens)

You: Hey! Can you lend me $100,000?

Lender: For what?

You: I’d like to find a property to flip.

Lender: Have I lent to you before? Do you have history with me? What kind of deal? How much experience do you have? Do you have the expertise needed to find a good property? How much money do you have to put down? And (most importantly) what does your deal look like?




(This is the way it should work)

You: Hey! Can you lend me $100,000?

Lender: For what?

You: I have this great deal! Here is the address, the lot size, the bed/bath count, comparable surrounding sales and the after repair value (ARV), and here is the profit margin. And (most importantly), here is the contract with my explicit, contractual right to purchase this property with the amount of money I need to borrow.

Lender: Great! We have something to move forward on! Let’s get started.


If you can’t answer those questions. Why are you prematurely talking to a lender? We’re conditioned in the conventional market to look for funding first and a house second. But in private money, it’s exactly the opposite! If you’re running into roadblocks, it isn’t because you can’t qualify, it’s because you don’t have a deal yet! Spend more time focusing on the deal and less on the lender.


Get the deal under contract.


If you have a good deal, a lender is the easiest thing for you to find!!


I get that this is an “Aha!” moment for some of you, and that’s okay. If you aren’t in a position to understand where to find a good deal, how to stack your offer, or how to write a contract, then you aren’t ready for financing yet. You need to get yourself an education first. Come to one of my Funding Tours, get some coaching or training, or come to one of my workshops.

If you have a deal and would like to get a quote from a private money, visit

To Your Success;

Lee A. Arnold


The Lee Arnold System of Real Estate Investing

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If you’re interested in learning more about the education you can receive with the Lee Arnold System of Real Estate, call us at 800-533-1622. If you have a deal and would like to get a quote from a private money, visit

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