New Private Money Lender Loans - How You Can Profit
This article will take a look at a new and innovative method for real estate investment financing you really should know about. I don’t care if you have never done a single deal, or you’ve done a thousand, take a couple of minutes and read this report, which will introduce you to the idea of private money financing and private lenders. This method can enable you to find and secure deals many experienced investors will be forced to leave behind, and you’ll be able to finance almost any type of property deal. Below, I’ve outlined a few basic steps to get you ready to take advantage of this powerful and flexible financing method.
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.
Once your business plan is complete, make a list of everyone you know. This will become your initial list of prospective lenders, which you will never stop adding to. Don’t limit yourself to people you think have money. In fact, don’t make any judgments now. If you know the person, add them to your list. It doesn’t even matter how well you know them , or for how long. Just write the name down as you think of it. Ask your family and friends to help you remember people you may have forgotten you know. Strive to make your list as complete as possible.
A little extra time spent on this step will be well spent. After you have worked on your list of possible private money lenders, put the list aside for a while, even overnight. Come back to it the next day, and you’ll be amazed at how many more names you will have come up with. Don’t rush. Keep the list with you for a few days, and add names to it whenever they pop into your head.
When you feel you have a list with the names of everyone you know, add their contact information. Your goal here is to have at least one way to contact everybody on your list. You’re looking for telephone numbers, email addresses and street addresses. Make sure you have complete and up-to-date information, because once you start contacting these folks, you don’t want to get stalled because you can’t find their contact info. Again, no need to hurry. The time you spend in this phase lays the groundwork for your success later on.
The final step in this preparation phase is to write a letter. You’re going to take the business plan you created in step one, and write a letter to your list of contacts that briefly explains the kind of investing you do, how you plan to profit, and why you’re contacting them. Be specific, and tell them you are looking for private money for real estate investing, and you would like them to consider being one of your private lenders. Put your self in their shoes as you write, and give them all the good reasons why they would want to be one of your lenders.
Some might be scared of this step, but you won’t be! All the preparation you’ve done up til now will give you confidence to carry through to the finish line. Go for it, and write the best letter you possibly can, no matter how many re-writes it takes. this letter is going to be the cornerstone of the future work you do to build a stable of private money sources, eager to stuff cash in your pockets for real estate deals. In your letter, add at least five benefits for the lender to participate, and make them pop! Now that your letter is finished, you are prepared to move on to the next step of finding actual lenders for your private money lender loans program.
