Funding – Private Lending
Private Lending can really help your business,
Just imagine if you didn’t have to worry about any cost whatsoever with your real estate investing business. You had enough money to do your marketing and you had enough money to be able to pay whatever cost it takes to acquire properties.
Sometimes you need money for the following;
- You need to expand your business with marketing and hiring help
- You need money for earnest money deposits (emds)
- You need money to do a quick cleanup and a minor rehab
- You need money for a new First Mortgage
- You need money to buy a property with subject to and a big down payment
These are just a few reasons why you need money.
Now let’s talk about private lenders.
Private lenders are just like anybody else,
I like dealing with people that have money trapped in an IRA or 401k and they can’t do anything about that. And they would like to get a better rate of return.
And they also don’t like losing money in the stock market.
And they also don’t like to pay the fees to stock brokers and mutual fund salesmen.
A good book is The Millionaire Next Door.
A summary of The Millionaire Next Door is at this link
https://thetaoofwealth.wordpress.com/2013/02/28/the-millionaire-next-door-book-notes/
I’ve gotten more money from people that don’t look like they have very much money as private lenders.
A lot of millionaires next door don’t look like their millionaires.
Now did you know that you can use your IRA money for Real Estate Investments?
Helping regular people use their Ira money for private lending Investments is a big part of being a real estate investor.
Here are some tips:
1 you need a good elevator speech. Something like the following…
Hi my name is Brian what’s your name?
Oh nice to meet you Steven, do you work in the area?
Oh great I don’t live too far from there. By the way what do you do for a living?
You are in sales what do you sell?
That sounds terrific.
I’m pretty lucky, I have a real estate investment company and we do three things:
Number one most home sellers get less than they deserve? I am a real estate business owner who buys homes and negotiates contracts, so my home owners get the highest price and the best terms possible. I also do it in their preferred time scale and with the absolute minimum hassle.”
Number two, Do you know that most home renters for a way a lot of money and have nothing to show for it? Most people in their 40s are more successful than the average because they bought some property in their twenties and thirties. I help people get there dream home now.
And lastly number three there are a lot of people that aren’t getting a good rate of return on their IRA Retirement money. They just want to get a steady rate of return of 8% to 12% and I help them do that.
SHUT UP!
Now if they do not say anything, just invite them to contact you later,
Have a business card,
You can always ask them,,
“Of those three things is there anything I could help you with today?”
You want to get their name address and phone number in your phone. There are apps on iPhone that you can do that quickly.
Here is a great article about Contact Apps for your phone
https://www.tomsguide.com/round-up/best-contact-apps
When you first start your real estate investing company, and you’re doing local work, meaning you’re buying local houses and your leasing local houses and you working your backyard for private lending money, you should always be marketing and one of the easiest ways to have people talk to you even if you’re shy is to have a big button, what do I mean by a big button?
Also wear a t-shirt.
Wherever you go shopping, wherever you do errands where are you
wear your button and wear your t-shirt!