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

Even if you’re just starting out in real estate investing, building a group of private lenders and other funding sources for your real estate deals is absolutely critical to your success. 

Oh, yeah, I know all about getting “free” houses from owners that will give up their house “subject-to” the current mortgages or are willing to owner finance the sale.  However, beware because acquiring these properties is usually Not Cost Free!

There are holding costs (the mortgage, utilities, maintenance, etc.) until you get tenant or a buyer.  There may be some repairs, back payments, etc. that you’ll need to deal with.  In any case - promise yourself that the money is not going to come out of your pocket!

So, it’s time to start building your property funding program.  There are 10 basic ways to do this.  I’m only going to talk about one (the rest you can get in my”Show Me the Money” training manual at www.privatelendingguide.com).

Let’s talk about one important way: Private Lenders.  These are individuals with IRA money or significant investment capital who are willing to lend you thousands of dollars for a great rate of return and some assurance they’re going to be paid back. 

The easiest place to start is with your own family and your friends.  Next post, I’ll talk about how even beginners can raise hundreds of thousands in capital!

Posted to Friends & Family, 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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Wouldn’t it be great to have individuals you could call at a moment’s notice and borrow $100,000 or more!  Many successful investors are enjoying this situation.  What’s their secret?  Basically, it’s simple–just give these people what they want.

So, put yourself in their shoes, and think about how they would respond to you.  Here’s a key pointer to keep in mind: WIIFM - no, it’s not a radio station.  It’s an acronym that stands for:

“What’s In It For Me?”

So, when you talk to these people, before you describe your deal or how great you are, tell them what they’re going to get.  “Hey, John, how would you like to get a 10% rate of return on your money, no matter what happens in the stock market…”

Now, you got their attention!

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, Private Lending
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