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Private Money Lender Loans - Real Estate Investing Goldmine | | | | Private Money Lender Loans - Real Estate Investing Goldmine
By Tom Dunn
There has never been as effective a financing method for investment real estate deals as the one I will discuss in this article. Whether you are an experienced investor or a complete newbie, you need to take a few moments and read these few short paragraphs, because they will introduce you to a powerful and creative concept to fund almost any type of real estate transaction. Using this technique, you can gain an unfair advantage over more experienced investors, and gain access to nearly unlimited capital. Here are a few beginning steps to prepare you to build your very own real estate private lending group.
Initially, you will start by sitting yourself down in a comfortable place and writing out your investment plan. No, I don't mean you need to pound out thirty pages, but just a short, specific, on-point business plan that will let prospective lenders know you and your business. How do you plan to invest? What types of properties? Will you buy and hold or flip? How will you profit? What kinds of discounts will you realize? Think like a potential investor and answer their questions before they ask them.
You'll need to take your time with this and not rush, because it will pay off for you later. This plan you are writing will become the foundation for two more components of the system- your elevator speech and your seminar presentation - which I will cover in a future article. Make certain you are not long winded, and you are specific, and keep your potential lender in mind as you work. It may even help for you to think of one specific person as you write, and write TO that person. Add details about deals you have already done if you have any. If not estimate, but do so conservatively.
Your second step is to write a list of every single person you know. This will be your "list of possible lenders" and will be a very valuable tool for you. You'll keep it and add to it forever. No time for judging now whether someone is worthy or able to lend you money. The rule is, if you know them they go on the list, no matter how long or how well you have known them. When a name occurs to you, write it down. Get help from others to remind you of people you forgot you knew, and try hard to make as complete a list as you can.
You don't want or need to hurry this step. Slow down and get a good start on the list, then set it aside for a couple of days to let your subconscious go to work. When you pick it up again, you will be astonished at how many new names you've remembered. Lastly, keep the list with you constantly for a few days, and put any name you think of down immediately.
Once you have what you believe is a complete list, start adding contact data such as email, street address, and telephone #. The goal is to have at least one way to contact each individual on your list, and you want to make sure the data you have is good and current. Once you start getting in touch with these people, you won't want to stop to get addresses and such. You'll be too excited! A little extra time spent here sets you up for massive success later!
Finally, write a letter. Yes I said a letter, but don't panic. The hard work's done. Just take your business plan and scale it down and personalize it. You're going to write a letter explaining your investing to your list, and telling them exactly what you're looking for. In other words, be upfront and specific. Tell them you invest in real estate, and what kind. Tell them you're looking for private lenders. Most importantly tell them the benefits of loaning you money. In other words, tell them what's in it for them.
Fear shouldn't keep you from accomplishing this- and it won't, because you're prepared! Don't rush through just to get it done. Instead, work hard to get the letter just right, no matter how many times you need to re-write it. Your letter will become the foundation of all your efforts to build a group of private lenders. Be sure to include as many lender benefits in your letter as you can think of... strive for five! Once your letter is done, you've completed this phase, and you are ready to start looking for private money lenders for your real estate deals.
About the Author:
Tom Dunn is a strong advocate for Private Money Lender Loans. You can access a FREE report and learn about Beginning Real Estate Investing
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