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Private Money Lenders – Finding More Than You Need
By Tom Dunn | September 18, 2008
With a basic understanding of private money lender loans, which you now have, I will give you further information and a step-by-step process for creating a steady supply of private money lenders, eager to stuff your pockets full of cash for your next real estate transaction. Wouldn’t that be great?
In my last article, I explained that you need to write a business plan, your prospect list of everyone you know, and a pitch letter. Now that you have those three things done, there’s just one last preliminary step to take, but it’s a big one. It’s time to prepare your elevator speech.
You may be wondering what an elevator speech is? Not to worry- it’s just what it sounds like. Let’s say you are riding in an elevator with someone you’ve never met, and she asks what business you’re in. the elevator speech is your response, which should sound like you just made it up on the spot, but in reality be well-thought-out in advance.
Keep in mind, your answer should be related to investing and private lending, not your day job, whatever that may be. Here’s an example of an elevator speech: “I’m a residential real estate investor specializing in commodity single family homes and duplexes. I use a small, select group of individual lenders to fund my deals, and they commonly realize returns on their investment of 12-15 percent. I currently have an opening for one more lender, and if you have any interest, I would like to share the details with you.”
That’s great stuff, eh? You can see why you need to sit down right now, today, and write your own elevator speech, can’t you? Use your previously written pitch letter and business plan as templates. All you need is between two and five finely polished sentences. Then, memorize them and practice them so you can say it without sounding stilted.
Now that you have finished writing your foundational materials, the time has come to start getting in touch with the people on your list. Call, write, or email… it doesn’t matter how you contact them, but once you reach them let them know the purpose of the contact, and that you have a proposal for them. Explain private lending in simple terms, and ask if they would like to consider being a private lender for your real estate investments. Tell them you wouldn’t mind answering all their questions one on one, and be sure to emphasize what’s in it for them (the benefits)!
Another way you can go about this is to schedule a meeting room at someplace like a restaurant, hotel, or library and hold an informational meeting. When you reach the people on your list, invite them to the meeting where all their questions will be answered. You will have at least a few of them say yes, and then you’re off and running!
When I write my next article in this series, I’ll provide details on how to create and develop a top-notch informational meeting, and get yourself a boatload of private money lenders. Stay tuned!
Topics: cash free investing, faq | No Comments »