How to Get Private Lenders & Lines of Credit to Fund Your Business

I my experience, most investors feel about business plans the way many people feel about exercise.  They know it’s really good for them, but they just can’t find the time to get around to it.  Other things always seem to come up. 

Now, you probably know the saying (and the truth) that “if you fail to plan, you plan to fail.”  I know I’m preaching to the chior, but let me give you some other reasons why a business plan can boost your success in obtaining large sums of money from private lenders:

1. Having a well-thought out business plan, is a powerful and positive marketing document for sophisticated and wealthy private lenders and angel investors. 

2. Your business plan will enormously boost your credibility with private lenders (even friends and family)

Let me explain. 

Most most investors get into real estate, strongly motivated to be working for themselves and achieving financial freedom.  And my guess is that even if you have a company (and you should), it’s really a one-man (or one woman) show.  Sure, you may use an attorney to close, but it’s pretty much you. 

That may be great for you, but scares the heck out of private investors.  Why? because they are used to evaluating Companies, as investment prospects.  A company is an entity that is not dependent on one individual.  If the individual gets sick or goes on vacation, the company’s business continues, and doesn’t put the investment at risk.  Having a business plan that shows you have or are building a strong organization that knows where it’s going is a major factor in addressing that concern.

In fact, all of the sophisticated and wealthy private investors that I know, expect to see a business plan to evaluate an investment. 

As a marketing tool, a business plan will help you create your story that will attract the interest of private lenders.  In fact, having a “good story” is absolutely essential if you want to be successful in raising private money.

I know that sitting down to write a business plan is a daunting prospect.  Would having a template to follow, and even being able to get a plan written for you be of interest?  If so, you are invited to join our inner circle where we have a whole training session on just this topic.

Posted to Angel Investors, High Net Worth Lenders, Million Dollar Slush Fund, Private Lending, SEC, Uncategorized
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Today is the 4th of July. I love this country because it offers more opportunity for anyone to fulfill their dreams than any place on earth. And that goes for getting the money from private lenders or other funding sources (of which there are many). Yet many investors find funding the major challenge to success in their real estate investing business.

Let me give you a tip–I call it the ‘Trust Factor’. A saying I’ve learned from my Angel Investor acquaintances is “Bet on the Jockey, not the horse.” This means that when a potential private lender is considering a new investment, the people involved in the venture are a major focus. That means you and your team.

My 2 yr old granddaughter has taught me a profound insight about trust. She believes everything her Mama, Nana and Pa (that’s me) tells her. Why? Because she totally trusts us and we always tell her the truth and do what we say we’re going to do.

And aren’t those the characteristics of people that we trust in our life. So, if you tell a potential client or lender that you’ll call them tomorrow, make sure that you do, rather than calling later with an excuse. If you tell a loan officer that you’ll have the paperwork for them on Wednesday, make sure you do, and that the package is complete! Same goes for making payments on-time (or early), and so forth.

The interesting thing is that when you do this consistently, you train other people to treat you the same way–just like my granddaughter. And it’s such an easy thing to do–anybody is capable of it. Make it one of your principles.

By the way, if you want to learn the other 4 characteristics for private lending success, I’ve created the absolute best and most comprehensive funding manual you will ever see called “Show Me the Money“. It contains step by step instructions on how to get money from private lenders, high net worth individuals, financial institutions, buyers, sellers, notes, and much, much more. And, it’s a ridiculously low investment (for now!). Click here and Get in NOW.

Posted to Institutional Lending, Million Dollar Slush Fund, Private Lending
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Anybody that’s been awake for the past 8 months knows that the public perception of the real estate market has taken a dive.  Now, it’s true that single family home prices in many parts of the country have leveled off or declined in value.  However, this is just part of the real estate market cycle. 

In fact, if you believe that to make money, you should “buy low” and “sell high”, now is definitely the time to buy.  The public of course believes just the opposite.  They’re holding their money in savings accounts or CD’s or worse, believing their stock broker or financial advisor can figure how to make money in a chaotic and unproductive stock market.

The challenge for the real estate investor is to show people with IRA’s and other investment capital the real estate right now is really the ideal investment.  To do so, you have to be prepared to address their fears and concern about losing money.  If you are flipping or rehabing and selling, you have to make convincing arguments about why you can sell for a profit while their is a glut of homes on the market and others are losing their shirts.

Prepare yourself with the facts of your market, and listen to the concerns of your potential investors.   Put yourself in the position of offering a sound financial alternative to their current investment situation.

By the way, if you want to know how to fund every deal you do, I’ve created the absolute best and most comprehensive funding manual you will ever see called “Show Me the Money“.  It contains step by step instructions on how to get money from private lenders, high net worth individuals, lines of credit, financial institutions, buyers, sellers, notes, and much, much more.   And, it’s a ridiculously low investment (for now!).  Click here and Get in NOW.

Posted to Friends & Family, High Net Worth Lenders, Million Dollar Slush Fund, Private Lending
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There are 2 key things you must remember when dealing with private lenders:

1) Never come from “needing the money”–always present as investment opportunity

2) Be ever patient and never give up.

You will have the experience of a person telling you they’d love to invest, but when it comes to actually writing the check… well, something always seems to come up, and you find yourself talking more and more to the voicemail.

“Why this is?” as my 2 yr old granddaughter would say.  Well, there is still some lingering doubt about committing the money.  Or, now is just not the right time for the individual.

Here’s how patience wins:

1) lingering doubt - the more you communicate–voicemail and email, you start becoming familiar.  (Why would he still be asking me, if it wasn’t a good investment).

2) right time - you’ll be there when time becomes right.  That could be tomorrow or a year from now.  If you’re no longer communicating you’ll miss out.

Bottomline - hang in there.  The first one’s the hardest.

By the way, my comprehensive funding manual called “Show Me the Money” has step by step instructions for raising money from private lenders, high net worth individuals, lines of credit, financial institutions, buyers, sellers, notes, and much, much more.   And, it’s a ridiculously low investment (for now!).  Click here and Get in NOW.

Posted to Angel Investors, Friends & Family, High Net Worth Lenders, Million Dollar Slush Fund, Private Lending
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