The Responsible Way to Use Other People's Money in Real Estate
In this episode of REI Deal Finders, I break down one of the biggest growth tools in real estate: private capital. We talk about the difference between "money" and "capital," why that distinction matters, and how using private funding responsibly can help you move faster, take down more deals, and stop missing opportunities because you're waiting on the bank.
I share how our business went from traditional loans and a failed first private lender experience to funding 82 deals in one year with private capital. If you're trying to grow your real estate business, this episode will help you understand how to find private lenders, present deals professionally, protect their money, and build long-term relationships that can fuel your next level.
Episode Highlights
[0:32] – Why we don't all think or talk about money the same way [1:05] – How we went from zero private deals to 82 in one year [2:16] – Our first private lender story—and what happened when the money disappeared [3:47] – How adversity forced us to get creative with funding [4:25] – Why "private funding" is different from just talking about money [5:11] – The role of capital in your real estate business [7:06] – Where most businesses get startup capital [9:49] – Why capital must be treated as a business tool, not spending money [10:07] – The importance of separating Other People's Money into its own account [12:04] – How access to capital lets you grab opportunities faster [15:17] – Why capital gives you speed, confidence, and more chances to win [20:17] – Why private capital is faster and easier than bank funding [22:09] – The success steps: find people, present deals, protect the money, and repeat [23:56] – How to start identifying potential private lenders [26:35] – What to say when sharing your real estate journey with friends and family [35:33] – Why creating a short private lender video can speed up the process [39:15] – How to protect private lenders with contracts, attorneys, notes, and mortgages [41:35] – Why communication keeps lenders confident and willing to lend again [45:36] – How private capital can support any size need in your business
5 Key Takeaways
1. Private capital is not spending money—it's a business tool
2. Friends, family, and your network are often the first funding pool
3. Access to capital creates speed, confidence, and more deal opportunities
4. Protecting lenders legally and emotionally is the key to long-term trust
5. You don't need one lender with $200K—private capital can fill smaller gaps too
Links & Resources
* REI Deal Finders Club [https://www.reidealfinders.club] – Join the community and apply for mentorship
* Recommended Book: Profit First for Real Estate Investors
* Private Money Club – Resource mentioned for connecting with private lenders
* Deal Finder Data – Partner resource for finding and analyzing deals
* Find & Flip Workshop – Two-day training on finding, funding, and flipping deals
If this episode helped you rethink how capital can grow your business, do me a favor—rate, follow, and review the podcast. And share it with someone who needs to stop waiting on funding and start building their deal pipeline.
Let's go get that next deal.