Is it realistic to find a private investor/lender in these economic times?

**VeraLevi** · 04-27-2009 03:12 PM

I hope to launch my personal shopping/style consulting company alongside with a high fashion boutique and salon. I have a business plan created, site is almost done. The estimated monthly revenue will be around $16,000 for starters. I took in account all possible sales income, income through salon, and services from personal shopping and style consulting. I need over $200,000 financing to hire and architect/engineer to do the building modifications, as well as an interior designer/architect. I need to purchase salon equipment, stock up on merchandise, etc. I would like to know if it's possible to find a private business investor or lender who would take a look at my plan. I have gone through banks but nobody wants to give you money anymore. Where is it possible to find a business lender/investor? What if I were to try directly contacting lenders, CEOs, millionares, is it possible to get one of them to look at my plan?

**VeraLevi** · 04-27-2009 08:39 PM

any advice?

**Wayne Liew** · 04-27-2009 09:06 PM

Despite the saying that banks are now starting to lend with the announcement of stimulus packages, credit for new businesses is still tight.

Is the 3Fs (friends, family or fools

) an option for you?

There are a lot of angel investors conference, associations and meetups. Just Google around for some of the local ones and contact them about what you are looking for.

**VeraLevi** · 04-27-2009 09:17 PM

Well if it were possible to find $200,000 through friends or family I would. I have searched around for angel investors but golly gee their percentage rates are extremely high! Off to do more searching... =)

**Latinpreneur** · 05-01-2009 04:31 PM

Well right now bank financing to startups is pretty hard, do you NEED 200k right off the bat? and you should try to find some angel financing, cause banks right know are pretty paranoid about lending and stuff.

**robousy** · 05-01-2009 11:56 PM

You should do some marketing on your own. If enough people see your site then you might get lucky and someone might be interested in working with you. Sounds unlikely, but it happens. Happened to me.

I paid around $1000 to a marketing expert on guru.com and she helped me get the word out to enough people so that it gained attention.

**ZingerIntl** · 05-02-2009 04:19 AM

What do you have in the game? This is what everyone will ask you.
Just talk to other small companies that didnt get love money and you will find a pattern of high start up interest rates. Its like blood money some of them. What you need to do is get a high interest rate loan if you can, then refi in 9 - 12 months. Its way easier to get funding when you actually own/operate/profit in the business.

**ZingerIntl** · 05-02-2009 04:23 AM

Another option and this is a big undertaking but right now you should find a fix n flip RE team. I know three guys that sell fixed up houses with equity in them. 20% avg. picking up one house and putting it in the game could help with an investors worries. Its also a 30 year, 5% loan. Thats cheap. One house at $100k FMV can be move in ready for $80k. $20k equity is 10% down on your $200k.