Look for Local Private Lenders

Published: Oct 22, 2004

Application

Why local? Because local lenders may have other interests in addition to seeking a financial return on an investment. They may have observed your hustle and performance over time. They may know your family and have faith in your "genes." They may have greater knowledge of local trends and economic conditions.

Sometimes these are called, "Angel" investors.

They are hard to find because most want to avoid harassment by keeping a low profile. You have to ask around.

Ask about someone who has just sold a business or a piece of property.
Ask your fellow borrowers if they know of an "angel."
Ask about a regular investor with a portfolio of standard investments ready for higher risk and higher return.
Ask about benefactors having a reputation for doing good in the community or just looking for excitement.
Ask business owners with a heavy cashflow and few fixed assets.
Ask people with all their earnings in their shoes (doctors, lawyers and other professionals.)

Local lenders finance in any number of ways including:

equity only
debt balanced with equity
debt only
quasi leasing (investor retains ownership of the asset as collateral)
quasi factoring (you assign your accounts receivables) [we use "quasi" because some lenders avoid certain legal restrictions with a legal disguise]
paying accounts payable by checking priorities with daily or regular visits
endorsing a loan at a bank (realize any endorsement appears on that person's contingent liability)

Stories

Stories from members will add great value to these maxims.

Please post your story by emailing it to max@unclemaxsays.com.

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Outcomes

Finding sources you never dreamed existed.
When all else fails hit the bricks.

Look for Local Private Lenders

Application

Stories

Outcomes

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