4 Ways To Raise Private Money For
Real Estate Investors
By Michel Lautensack
The author has permitted the reprinting and redistribution of this
article.
Now that the mortgage market for buying investment real estate is all
but dead - investors need to have other sources available or go out
business. Fannie and Freddie will no longer be available for investor
mortgages, traditional banks and saving and loans will not touch
investors loans for many years to come and hard money lenders, when
available, can have total cost over 25%.
The answer is private money raised from people, not banks, through a
process called private lending. Here are the four top ways to attract
and develop your group of private lenders.
Private Lending Group Presentations
A private lending presentation involves getting 5 to 20 people into a
room and doing a group presentation where you lay out the details and
benefits of your private lending program. This may not be for everyone
depending on your comfort level of talking in front of a group of
people. But there is big advantage of doing group meetings. When people
start to ask questions and tell positive stories a certain level of
group think starts to take effect and can be very powerful on the
attendees.
One-on-One Meetings
If you are not comfortable with group meetings - one-on-one meetings
are a great alternative. I generally recommend a breakfast meeting in a
quiet restaurant where you can have 15 to 45 minutes of time with your
prospect. Like the group meeting you need to lay out your private
lending program’s details and benefits.
Out of Town Prospects – Creditability Kit
If the potential prospect is out of town you will need a good
creditability kit you can send in the mail. It is very important to
follow up two or three days after you send the package to see if they
have any questions. Even if they do not participate right away, keep in
contact and they may invest some time down the road after a number of
follow up contacts.
Existing Private Lenders
If you already have a private lender, or lenders, be sure to keep
asking them if they would like to participate in more deals. You will
be shocked that most investor only give a very small investment to
start and wait to see how things turn out before giving you more money.
So keep asking and do what you say you are going to do they will
develop a better relationship and trust level with you. As the
relationship grows they will invest larger and larger sums to grow your
real estate investing business.
I invite you to learn more about Private Lending and get my new FREE
20-page eBook titled Discover the Secrets of How to Fund Your Real
Estate Deals with Private Lenders! by clicking here
httprealestatewealthtoday.comFREE-eBook.html .
If
you would like to take advantage of the market and learn how to invest
in real estate and you are local to the Dallas Fort Worth area, I know
a really great teacher and mentor here in Arlington Texas. Please take
a look at his web site: DennisJHenson.com,
Dennis has a great Mentoring and training program, I know because I am
one of his former students. I learned a lot from his one on one
teaching technique. - Michael Harman 817-457-7572
mchfun.business@gmail.com
http://www.biggerpockets.com/articles/