privatelenders

securing private money lenders

You can get private money lender leads from a variety of sources including your “warm” contacts, networking, and public records but the first thing you need to do before you can leverage the funds a private money lender might have is to set up a qualifying appointment.

Before you start setting appointments with private money lenders you need to develop a private money packet and private money presentation. This will help you to…

• Educate the potential private money lender on your business model and niche

• Explain real estate investing makes sense and why you borrow private money

• Handle questions and objections the private money lender might have

• Find out your prospect’s investment experience, what return is expected from a good investment, the range of funds available… ultimately, find out your prospect’s needs and goals

A solid private money lender presentation can do this all for you. After your appointment with the private money lender be sure to follow up with your prospects and pass them deals that fit their lending criteria.

Now that you understand the process and the presentation, it’s time to get your first appointment.

Getting Your First Private Money Lender Appointment

1)  Do NOT Disqualify Anyone

This is very important… one of the biggest mistakes you can make is to disqualify someone because you don’t think they would be interested or because you don’t think they have available capital to fund your deals. At this stage in the game, your just practicing your script you’re your planting seeds to spread the word that you’re both a real estate investor with good investment opportunities.

2) Make Your Potential Private Money Lender List

Pull out a sheet of paper. Now, write down the first 5 people that come to mind who you could set up an appointment with. These people should be warm lead; folks you have a personal relationship with. This could be your brother, sister, cousin, mom, dad, best friend, neighbor, someone you went to high school with, someone from college, someone you work with, son, daughter, another investor, someone you met at REIA, church, rotary, your boss, aunt, uncle, social media friends, insurance agent, Realtor, mortgage broker – you get the idea, right?

3) Make The Call

Make the call and set the appointment. This may be unnerving at first but you can overcome your nerves by thinking about how much money you’re going to make and by using a simple phone script. Start of by introducing yourself and tell them briefly what you do; say something like… “I’ve been getting into real estate investing and have a new presentation on my business. I would really appreciate it if you would help me out and let me show it to you sometime. I value your opinion and would love some good constructive feedback from you. I’m not selling anything. Could you help me out with this? It’ll only take 30 or 45 minutes. Thanks, I really appreciate it. When would be a good time for us to get together? Where would you like to meet?”

Boom, you just secured your first appointment and besides that you might find someone who openly interested right off the bat. Many times, half way through the presentation, the prospect will look up at you and say, “You know. I may be interested in this.” Build momentum as you successfully set up private money lender appointments, once you do this with consistency it’s only a matter of time before you secure your first private money lender.