It is extremely easy to generate a list of active local private lenders using the public records. There are multiple ways to generate an active list of private lenders both online and offline depending on your area. I will demonstrate below how to get the list, whether it’s your local market or a market clear across the country!
Once you have that list then it’s time to implement the method to convert them from a “suspect” to your prospect, then on to your private money lender list. Frankly, that’s the part that most people, struggle with, is how to go from that list of active lenders to getting them to stroke a check to fund your next deal
There are many different conversion strategies that you could use depending on what makes the most sense for you. We’re going to show you some direct mail strategies, some online strategies and more so you can take everything that we teach here and whatever suits your business model, your needs – take it and use it.
EVERYONE IS A PRIVATE MONEY LENDER SUSPECT!
First off I think it’s important to understand that everyone and I mean everyone, every person you know, every person you meet going forward is a potential private money prospect so, this training is going to focus on active private lenders, people who are already lending private money, but open your mind because every single person, especially someone who’s not currently satisfied with the returns that they are getting on their investments is a private money prospect. So open up your mind because there’s private money everywhere, all around you, every day, right under your nose.
Some of the “tactics” you will discover take less than 60 minutes, without advertising, without any or few expenses, without taping your own family and friends (even though I think your “warm” network is a great place to get private ) and we’re going to show you how to do it without good credit!
Private money is asset based lending, so, private money is lent to you based on the property, not you the person, so you can do this without your credit, you can do it without a lot of time, easy, especially since you’ve leveraged these training resources. Please pay attention to the pros and the cons of finding these lenders. There are ways how not to contact a private lender. This is extremely important because we want to make sure that in the conversion process, when you’re contacting them you stay SEC compliant.
Now I do want to have a quick disclaimer here – I am not an attorney so this is not legal advice! Always as good business practice consult your own attorney, if you need a referral to an SEC attorney we’ve got a couple that we can refer over to you and in this training I’m not asking you to be my private lender, I’m just teaching you, in my opinion, what works, so we are not attorneys, this is not legal advice.
FYI… I use Sidoti Law Firm out of California ( there is a loophole you can use ) http://www.jilliansidoti.com/ Tell her Duncan sent you to get a great deal!
BUILDING A PROPER FOUNDATION
What is private money? Private money is using investment funds from an individual. Any individual who is not currently earning the kind of returns they want, maybe they’ve lost money in the stock market, maybe they’ve made very low returns in traditional investments, well guess what? – they may not know it yet but they are a great private money prospect.
Finding the lenders is just one step, so getting the list of active private lenders, look, it’s in the public records, anyone can generate that list and as you’re going to find out it’s not that difficult to get your hands on that list. Sure, in some areas of the country, there’s a few extra steps, but getting the list is only one step, the most important, second step is that conversion process, is building credibility and trust, that’s the second step, this is relationship building, even though these people are active private lenders and they understand real estate, they understand private lending there is still a relationship building process and we’re going to break that down for you step by step.
I hope by now you have a focused business strategy so you can clearly communicate what your business is and what it does! If not, its vitally important to do that first before you get started and contacting lenders and what not because the more specific you are about your specific business, your niche, the type of properties that you are purchasing, the price range, the area, the more that you niche yourself the easier it is to communicate what you are doing with any private money prospect and also the more believable it comes across if your business has a focus. (Please review the private money presentation and marketing materials to help you)
If you start marketing without focus and clarity and you say “Oh yeah, we’re just getting started but we’re interested in single family homes and apartment buildings and commercial and mobile homes and raw land and this and that“, well guess what – being so spread across everywhere, it will not put the confidence in your prospects that your business is focused in and knows what it’s doing so clarify what your business is and does, niche yourself, figure out exactly what it is that you’re going to be doing, focus in on that one main thing and move forward with it.
For instance, in my business, my focus is single family homes, in the Greenville, South Carolina surrounding area and I’ve niche-d it even further we focus on properties that are in the 100K – 200K dollar after- repaired value range – that’s what I’ve focused in, that’s what I’ve become excellent at doing and only until after I put systems in place and built that entire business did I start to expand into multifamily small commercial buildings.
Second point here – work on your mindset first, because if you are not confident in yourself, private lenders are not going be confident in you either. The more confidence you have in yourself that’s going to be transferred from you to your business, what you’re doing and then to any of your prospects, they’re going to see that confidence!
SIDE NOTE: If you are just getting started one thing you can do to raise your credibility, confidence is use me as your mentor. As a member of my Platinum system, I’m here by your side so fall back on me , my experience, my credibility and use it as if it were your own so you can say that my mentor has been doing this for many years, getting private money is not something new, investors all across country are doing this, so fall back on me and you can say that your mentor, who’s guiding you through this process, who’s systems that you’re learning and implementing, has been doing this for many years, has done hundreds of transactions and so fall back on me.
And now since this training is teaching you how to connect with active private lenders they already understand the real estate game, they understand the private lending game so a lot of times if you can have the confidence that you have found a great deal and you know it’s a great deal they’re going to see that too and you’ll be able to move forward.
Create and build relationships with your prospects first! Private money equals personal relationships!! It doesn’t matter where the lead came from whether it is public records or anywhere else, this is still relationship building and this is required by the SEC because if you offer an investment opportunity to someone that you do not know, someone that you do not have a previous relationship with, guess what, that’s considered a general solicitation, which CAN get you in trouble with the SEC if you are not registered with them. So, the process is build the relationship first, get to know them, find out about their needs and goals, their business model, what they are looking for and ultimately you want to position yourself so that they ask you about your opportunities and then and only then do you start to present your opportunities and we will hit on that more later.
Build your real estate business and utilize that credibility for your private money marketing! You may be thinking “I have to have the money before I get started”. Actually, NO you don’t! This is why I have you do a few simple deals first that don’t require money!
Here’s what you can do, start networking immediately at your local real estate investment club and start meeting some of the movers and shakers and getting in with active investors in your community and you could start doing a few things to find good deals.
When I got started 7 years ago (before using the internet) I put newspaper advert in the “We buy houses” section or the “Real estate wanted” section in the newspaper, we researched public records and found people who were in foreclosure and we just go knock on their door and we also did “We buy houses” bandit signs, well that was before I had any money contacts, we just started marketing to find great deals and when the deals started coming in, that motivated us even more to go out and find the money so we’d contract a great deal and then, either we would seek the funds to finance it or we would just assign it to another investor and wholesale it.
Well guess what when you go out and contract the property and then you assign it to another investor for a wholesale fee you don’t have to close on the property yourself and you can get a real estate transaction done. One of our students just had an e-mail yesterday, and he just closed his first deal, guess what, he found someone who wanted to sell, sold, put a contract on it, wholesaled it to another investor and now he has experience, now he has closed a transaction, now he can use that as credibility and guess what he did not even need funds to close it. So build your real estate business, transfer that over as credibility to your private money getting and move forward.
What are the some do-s and don’ts
First the dont’s
Do not advertise to solicit funds and a little addition to that is unless you do it right, we’re going to go over some of the SEC later that you need to know.
Don’t send out postcards and letters to random people soliciting funds, remember, you’ve got to build a relationship first. And we’ve got a couple direct mail pieces that you have access to, that do just that, they do not solicit funds they get your foot in the door, first, very important
Don’t sell people on your program, educate them, just shift your mind set from being the salesman that’s selling them to just being an educator and it really takes down some of the ..the pressure out of any situation, just go in as an educator, educate them on your business model, educate them on what you’re doing, what opportunities you have if they’re right for them great, if not great, move on there’s plenty of fish in the sea
Don’t be in the “me“ attitude . It’s about “what’s in it for them! You want to shift your focusing on yourself to being in the prospect so look at things the best you can from the prospect’s view, you want to think from the prospect’s view. They are thinking WIFM – what’s in it for me , that’s the prospect’s attitude so you want to look at it from their perspective and point of view ~
Now the DO’s
Do focus on building your business and relationships as we’ve gone over before.
Do always focus on education report first and never sell because we found that the most effective way to bring in funds to quote on quote “sell the idea” of people investing, lending you funds is not that salesman role, is to just come across as an educator build report , get to know the person show a genuine interest in the other person and educate them.
Do have fun, because that’s what life is really all about and that’s what your real estate business and getting private money can be about too, it’s just having fun, you know, relax, take action and sure, sometimes you’re going to be a little bit uncomfortable but that means that you’re learning, you’re growing, you’re moving towards your goals and we are here as your support throughout the whole process.
Some places to find private lenders
First: Your “warm” market, these are people who you have long term relationships with, these are people who know and trust you and these are a great source of private money and out of the over 3 million dollars that I have recruited and funds for my business the majority of them have come from that “warm” market, just talking to people, relationship building there, showing them a little bit about what we were doing, showing them some of the results we were getting in our business investments and opportunities and converting them over.
Action Item: MAKE A LIST OF EVERYONE YOU KNOW!
Second: Another place to look, your buyers list and what you can do is you can present that you connect your buyers with private lenders to close their deals and you can find out who on your buyers list has cash and see if they’d rather be a private lender. Pretty cool, because people on you buyers list, guess what, they have cash and often times, this held true with one of my first private lenders, often times, sure, people on your buyers list are wanting to buy property but they also see the value in diversifying and having their money working for them in different ways.
Well guess what, when you buy property versus when you lend money that’s getting your money working for you in multiple, different strategies in real estate. So one of my first private lenders, he was active buying, leasing, selling real estate but I came across a smoking deal, passed it by him and he funded it and it was a win-win transaction because I got to use the funds, I paid him a good rate of return he wasn’t using them in his business anyway so it worked out great.
Third. Networking or social groups where people with money or “influencers” gather: a few that I found beneficial, Rotary, your Chamber of Commerce, this one’s a terrific one – BNI – it’s called Business Networking International and it’s a lead’s referral group, so there’s chapters all over the country and all over the world.
When you join a BNI group it’s everyone’s mission in as a part of that group to give you referrals that grow your business so by joining one of those groups you literally get a team of people working to refer to you whatever kind of prospects you are looking for, in this case private money prospects.A couple of other places, networking wise, go to foreclosure auctions, tax sales, people with cash go to those types of meetings,
FOURTH: Referrals, this is absolutely huge, especially once you get one or a couple or a few private lenders in your program and they’ve seen good results it’s time to go to them ask for referrals. Referrals are really the golden prospect; I’ve had one of my private lenders refer 5 others to me. And these people come ready to lend, I have had people come to me that were referred to me, they had their check book out, they’re ready to get started because they were sold by the referrer! And so, once you get this going you’re going to just explode your business through getting referrals.
FIFTH : the Internet, a great place to connect with potential private money lenders as well but you will have to be careful with some SEC guidelines; and then – public records which is what private money on demand is all about and we’re about to dig in deep.
PRIVATE LENDER TYPES – PRO AND CONS
Private lenders, there are a two types you need to know about.
PL One – people who aren’t already private lenders.
There are some pros, you can usually get really low interest rates, they tend to refer people to you more often and loyalty is very high. A couple of cons: often times they need a lot more education and the time from contact to deal can be longer, because sometimes, these people who aren’t private lenders they do not even understand the real estate game how it all works so there is a good bit more of an education process with folks who are not yet private lenders.
PL Two – The second type – people who are already private lenders.
Pros: they already know the game, they don’t need the education, they are at “fact based”, they’re easy to find as you are about to see, we’re going to hop online and I am actually going to show you real private lenders through public records, through online that we’ll find and show you below. The time from contact to deal, tends to be shorter. Cons: interest rates tend to be a bit higher from time to time and you are competing with other investors potentially for those funds.
SO HOW DO YOU FIND THESE PEOPLE??
The Public Records!
THE SEARCH AND DEPLOY METHOD
This is the easiest way to find people in your area who are already lending private money, It’s simply to just search the “deed of trust” or “mortgage records” and then comb through those to look for the private individuals who have lent funds! This all can be done online in almost any county in the USA. You simply need to FOLLOW THE MONEY PAPER TRAIL!
Let’s follow the private lender trail so that you understand how we’re able to find this information:
1. A deal is closed with a private lender
2. The title company attorney records the docs, the data trust or mortgage, now that’s what’s recorded on record, depending on the state, it depends on which one they record – South Carolina we’re a mortgage state so in South Carolina I would search the mortgage or those are the records that would be on file that we would end up searching and these have the lender‘s info on it
3. And 3, research private records and find private lenders.
WHAT TO LOOK FOR
Here are the 2 methods that we will use to find private lenders through public records.
1.Number 1 – The Search and Deploy method, that is where you search the deed of trust, that’s also known as Trust Deed or Mortgage Records. You’re going to search for “grantees” or “mortgagees” who are private individuals,. This is the easiest way to find people who are already lending.
Now when you are searching through the total of all the records, most transactions are traditional so you’re going to have to comb through the records to find the private lenders, but I mean how many of these names do you really need, how big of a list do you really need?
2.Number Two – Search by “owner type”, I suggest that you search the non-owner occupied properties from the past 6 months (depending on your area, how big it is, how many transactions have been done, you may search the last month) but try three months, six months, maybe even a year.
Most online public record sites that I have used do not allow an owner type search, this owner method searching the non owner occupied properties, this, I found tends to be easiest done down at the court house or even potentially through buying a list through a list company, but by looking at the non-owner occupied properties, these are investment properties and often times people are using private funds for them so, when you do get a list to comb through usually you do not have to search as hard as the search and deploy method to find the private lenders.
Either way as you’re about to see it’s pretty simple.
THE SITE TO REFERENCE: www.PublicRecordSources.com This is a huge resource, BOOK MARK IT IN YOUR BROWSER! This site is going to give you all of the states around the US and it gives links to all the public record sites. (at any time you can click on images to see full screen)
This site is very simple to use! As you see here are the links to the different states, we are going to dive into Florida here and I want you to keep it in mind that every county website is different, so, depending on where you are at in the country you may have to do a little bit further digging to find your online area.
Lets Dig into Florida
As you can see lots of links in here for all the various counties in Florida so there’s a wealth of information here at your finger tips, and what you’re going to look for is locate the county that you would like to find private lenders in and you’re going to look for the link, typically it’s the link, like for instance with Bay County you have got Criminal, Civil, Probate, Traffic Courts, Property Appraisal links, Tax Collector you have got this one that says Real Estate Deed Lien Judgement
Let’s look at a couple other counties here, and, let’s see – for instance with Broward you see all these different links for Broward County and you see this one that says Real Estate Recording Deed Lien – any time you see the word recording that’s usually a tip off that that’s the correct link, so I would imagine that that’s where we would want to go.
For Charlotte County you can see here it says Real Estate Grantor Grantee and I believe that would be the correct link for Charlotte.
So you may have to play around with it a little bit and heck, if you cannot figure it out even just call the Court House, your local Court House and ask them to help guide you a little bit.
We’re going to dive into Bay County here and I have used Bay County’s record system before so I know that all we’ve got to do is click right here and it’s bringing up
a pop up window.
we accept the conditions
and this is Bay County Florida’s online public records system, so, if when we look on the left, here’s a box that says search records and it gives you a lot of different ways that you can search records and I’ve seen a lot of different online public record systems around the country now and there are a handful of states and counties that use a similar system to this so maybe you’ll see something similar but there are a lot of counties that just do their own thing and it may look completely different than what you are looking at here but, you know, you’re going to have to just do a little work on your end.
So out of all these types of searches I know that the document type is probably going to be the easiest way to search here. When you go to document types we would either be looking for mortgage or deed of trust or trust deed,
Florida is a mortgage state so as you can see here it says mortgage, then you are going to put in a date range, now, let’s see I’ve put in, let’s do 9/5/2010. So I am going to pull out the mortgage records for the last two months and search the records here.
As you can see it pulled up over 1000 results for all the mortgages that were filled within the last couple of months in Florida, but as you can see here, here are all the different transactions the amount of funds lent here on the left and under name here, these are the borrowers and in the first cross party name that’s going to be your mortgagee , so as you can see most transactions are traditional – Regions Bank , Wells Fargo, Bank of America and here it looks like we have a private loan – John Fanning lent 25 000 to Mathew Oneal let’s check it out.
When you click on that here’s just a little bit of information on it, if we can view the image of the document let’s see what it pulls up here, now it should be pulling out the actual recorder mortgage on record and this is pretty cool because, as you can see, let’s see , it has John Fanning’s address. Right here is where it starts and down on to the next line so it gives you the physical address of the lender, let’s see it says, let me see if I can make this any bigger, let’s do 85 %, now you can see a little bit better, you can see he lent 25 000 payable monthly for a total of, he lent 25 000 principle and interest payable 450 a month for 75 months. Now let’s see if the note was recorded. Sometimes you will be able to actually pull out the note that was recorded as well and that is awesome because you can see the exact terms of the loan and as you’ll see here in that first paragraph, the 25 000 was lent at 10% per annum. It gives you the lender’s address and it gives you the specifics of the loan , so really cool, and not every area around the country, you are not going to be able to pull up the note as well, sometimes you will… sometimes you will just be able to pull up the mortgage and in some areas you may not, online, be able to pull up any of the docs. But, I am going to go over a little bit of info of how you can still get that information by going down to the court house.
Ok let’s see if we can find another one here, you can see all these transactions where Wells Fargo lent money on. Most of the transactions, when you use this technique are going to be traditional, now, just focus on the private individuals who loaned, I wouldn’t contact any of the LLCs or any other entity that has loaned funds, just look for the private individuals. Ok and here’s one where it looks like Harriette Harrell lent to George Harell, Since that , to me it’s probably just a parent lending to children or, I don’t focus on any that I could immediately tell it could be just a family to family member loan so let’s keep trucking here, some more LLCs and a lot of banks and mortgage companies
here’s one, John lent to Melanie 82 000 dollars and this was just back on, about a month ago, let’s look at the docs here.
Wow, this is an interesting looking mortgage here, lent 82000 again it has the lender’s address here if you can read the chicken’s scratch, it has the address, the amount, here is, it looks like all the terms of the deal here .Check this out, it lent 82000, of course it has got his address here in Panama City Beach down in Florida and look at this, lent for 360 months that’s what I like to see, so in down here it has lent the funds at 10% per annum and it has done a 30 year amortize loan at 10% for 82 000 dollars so if, you had heard that you can only get private money for short terms, well that myth’s been busted right here because this is loaned for 30 years and on an amortised loan, it’s awesome and it’s easy to do as you are finding out.
Now I am going to show you, let’s see, now, we’ve searched; we’ve used the document search here and a date range to pull up all these records, you come to the records, you build your list and then we’ll go to the conversion strategy shortly. You may be in an area; their search screen may not look like this but let’s check out these directions over here to use the name search, that’s what we’re on right now, you may be in a county where their public record system requires that you put in a name or at least a few characters of a name.
I’m going to show you a work around if you run into this little issue – what we can do is again click on the mortgage as the doc type, we can just put in whatever date range we’d like, we’ll just do a month ago, and now it says the name must be 3 characters long so if you have a public record system that doesn’t have a specific document type search and it forces you to put some name in or at least a few characters you can do a work around and for instance, just a popular last name is Smith and If I just put in “Smi “and search the records here this is just a work around, for being able to search if some kind of name is required and just in the last month using those as the first 3 letters there have been 13 mortgages recorded. OR you can try to use a wildcard *. or %
and as you’ll see here, check this out , Dana lent 300 000 to Craig Smith and this was just about, this was maybe a couple of weeks ago and there are the specifics, let’s view the image and check out what this loan was all about.
But sure private loans, you can find private loans that are in the amounts of hundred or a few hundred thousands or even much more and so here is the mortgage let’s see… it looks like it’s through November 2013 so it’s a 3 year loan, it has the lender’s name and address right there and here is the note and again, like I said, a lot of areas, a lot of times, the note is not going to be found on record but it’s pretty cool when it is because you can find some very detailed information, now this is a very beautiful thing 6% per annum, private loan for 300 000 USD and it’s a 3 year loan, you can see the time frame here and let’s see, yeah, it balloons Nov 1st of 2013. So there you go, it’s searching online public records, especially, now, I’ve used this type of website before to search these records, sure it took me a while to figure out the ins and outs of how to easily search, but once you’ve figured it out you’re ready to go, build your list and it’s pretty simple to do as I showed you.
So, back to publicrecordssources.com, this again, like I mentioned is the main resource that we use to find the correct website to search online for whatever state you’re in. As I mentioned earlier if you’re in another country it is going to require a little work on your end to either find that online resource where you can search or we’re going to jump into some other strategies here now on how to get the list.
ANALYZING YOUR LIST
Now it’s time to analyze your list. You’re looking through all types of lenders, banks, hard money lenders, trusts, other entities and you’re just looking for the normal every day people. Most of the transactions are going to be traditional lenders, so you may have to comb through a lot of records, you may even have to click on every individual record to see if it was a traditional lender, or if it was a potential private lender, but whatever you have to do, is what it is and so just do it, get that list and grab whatever lender info that you can, of course the lender name, their mailing address- if you can , the loan amount, the date, the property address that the funds was lent on as well because that will give you a good idea for where in your area, what type of properties what neighborhoods they’re already comfortable lending on and if the note is on record, then awesome, get any and all terms off of the note, like the little note at the very bottom, focus on lenders making large, long term, low interest loans, that’s the best money that there is and like we’ve just found there was a 30 year amortised, private loan made so it’s out there, good low cost long term funds are out there.
WHAT HAPPENS IF YOU CAN NOT FIND PUBLIC RECORD DATA IN YOUR AREA?
Realize that you are sitting on a potential gold mine because just the fact that if you’re in an area around the country who’s public records online system is not user friendly or does not, or maybe there’s not one at all, or it just doesn’t allow you to get the information you need well guess what, that means that there are a couple of extra steps, n extra step in the process that’s going to weed out a lot of the competition and that’s going to send out a lot of your competitors back out of the game of even attempting to connect with private lenders through public records.
So you are sitting on a gold mine. Here’s what I want you to do first if you are having a little trouble either with the online record system, navigating it or finding the right one at all, call the local county court house, get someone on the phone who is in the records department to help walk you through the process. Often times, these people in their job, they’re proud of what they do and so, to be able to help someone else understand it makes them feel good so just call down there.
Another thing that I’d suggest, is go to the court house, sometimes it is a lot easier to do that then to call, to just get someone in the department to physically show you how to search the online records system, or if there is no online record system or the website online is just not user friendly or whatever, then at the court house they can generate the list for you so you can just let them know what information that you’re getting at using the same search criteria and techniques that you’ve learned here today and get the list generated directly from the court house !
Sure, you may have to spend a long time at the court house, but so what if you come up with a list of private lenders, who have lent money on deals in your local area in the last 3 months. You don’t need some huge list of hundreds of active private lenders, not at all, a much smaller list than even 30 will do for you and then you start implementing the conversion strategies.
SUMMARY
To recap, either get your list through online public records, at the court house itself or you can potential buy a list from a title company or a list service, or wherever you can get it.
The site: www.PublicRecordSources.com is an awesome resource. If you’re having trouble finding your online records site, go into Google and search your county state and then the words public records and see what you can find out there.
A couple of resources that you may want to write down if you want to buy a list, sometimes you can do that through a title company or listsources.com or courthousedirect.com and depending on who you go through it can cost you per lead that you want one of these list companies to pull for you. (See my post using www.InfoUsa.com for buying leads).
You want to get the lender information, the grantee, the mortgagee , then you simply contact them, build a relationship then you get private money!
You now have a wide range of strategies, both online here and offline to get the list and that’s just one step away from converting them.
How to convert prospects to fund your next deal.
I am going to say it one more time… don’t offer an investment opportunity to your new private lender list, you must build a relationship first, so that we can stay SEC compliant. You don’t want to solicit investment funds from someone you do not know because that is considered a general solicitation.
Use our strategies outlined below to get your foot in the door, to build that relationship and once you have a relationship with that person then you can offer them an investment opportunity and then it is not considered a general solicitation because you have, quote on quote a relationship as defined by the SEC with them. So that’s why we tell you to do this in the structured way that we do, so that you are SEC compliant. So here are our relationship builder strategies, a few different things you could do
DIRECT MAIL
Use our letter, or our post card. We have 2 different letters and a postcard to use along with your private lending website.
You can also get them on your list maybe have a wholesale buyers list, or your social media list or e-mail, you could also just give them a phone call or e-mail them if you can find that information
Our letters are designed so that you are not sending out a general solicitation, soliciting investment funds, these are relationship builder strategies so if you have no prior relationship with a potential private lender on your list, you don’t want to come out talking about your private lender program asking him to be your lender, even sending a deal by them, your first contacts with a person who you do not have a prior relationship with should be a contact that doesn’t address your private lending program at all so that’s what both of these letters are designed to do .
I feel a great way is to send them a letter like the friendly meeting letter where you let them know that you are a local investor and saw they are too and would love to connect to other like people in town see if you could meet up for a coffee to talk shop about your local real estate market and just build a true, genuine relationship with them before coming out firing about your private lending program. So that’s what the friendly meeting letter is all about, download it, read it, check it out and see if it’s in a line with the way you would like to convert them over, we’re going to give you several different strategies that you can use , so use whatever you’d like.
There is also a “Buyer’s list letter” – and this is a short letter aimed at getting a prospect on your cash buyers list and it can be send out to both private lender prospects or cash buyer prospects and you’re going to use this letter as a foot in the door with them so that you could build credibility in a relationship with them over time to convert them into lending you funds.
So, download both these letters, check them out, and put them to work for you.
And, when you are “market” your lenders through direct mail here are some tips on the actual mailing piece here:
-Use a nice stamp
-White Number 10 size envelope
-Handwrite on the envelope the lender’s name and address, use blue ink,
-You can leave the name/company name off of the return address and you can leave the return address just blank, because, ultimately, you want to let your letters opened and there’s a curiosity element if you get a letter in the mail addressed to you, to your address handwritten with a live stamp, there’s the curiosity factor if there’s no return address or name of who it’s from so people get curios open it up and read it and that’s your goal here. Also you could just leave your name or the company name off and include your return address so that if it’s undeliverable it is sent back to you and you know that address is no good.
-Repetition – You may need to repeat the letter. With direct mail that’s what it’s all about.
Getting them to speak to you..
If you’re going to reel them in through some of these other strategies here, through your lists, there are a few lists that you could reel them in through, one your buyers lists, let’s say that on one of the direct mail pieces that you send out you put a link that where they can click through to join your wholesale buyers list or you just mention in the letter, that you, like we’ve mentioned, have great deals and they can get put on that so that they’re in the know when you have a great deal to pass them by.
Then there’s your social media lists, if you’re not already on Facebook, Twitter, I advice you to do so, it’s free, it’s easy, and even if you think that they are silly or dumb or a waste of time, there are millions, I mean hundreds of millions of people who are communicating through these platforms so why not get there and once you can do, once you have your list of active private members search on Facebook and Twitter to find their profiles and connect with them, start to build that relationship through social media, guys this is a very simple thing to do.
Now you can go to Facebook use their search or go to Twitter and use their search to find the people on your list and if you are not able to find them there, even just go to Google and type in their name and the state that you’re in and the word Facebook or the word Twitter and often times you will find their profile, connect with them and start to build that relationship. Or if you can get them on your e-mail list, if you have an e-mail list that you e-mail regularly in your business that could be a great way too.
You could call them if you could find a phone number for them, sometimes you could just enter in the private lender’s name and their address and sometimes it will just pop up a phone number and you could call them, not my preferred method, but, you may be able to, and you may be able to find an e-mail address for them as well, just googling some of their information or who knows, you may find a doc on record or something that has a contact there, probably not, but just see what information you can dig up and start to reel them in.
KEEP IN MIND!
Keep in mind that your goal here, your aim upfront is to pique curiosity, is to get their interest to a level where they want to contact you, where they reach out give you a call, e-mail you, go to your website whatever and you’re just in the curiosity piquing mode at first and then you’re building a relationship and then, once you have the relationship, then you can start passing deals by them and you’re SEC compliant.
Educate, don’t sell, just be the educator, hit on their motivators, so keep in mind that it’s not about you, it’s …the prospect is thinking what’s in it for them, which are typically – making a good return , having a safe investment, being secured, etc.
Use the rule of reciprocity, one way that you could do this is to give them something first. Then, inherently other people want to give back to you! One of the things that you could offer would be a free report, perhaps offering some tips that they should know when lending private money. (Secrets Wall Street Doesn’t Want You To Know)
This is why I use my Jeff Adams private money website auto responder series.
Don’t come off asking to borrow private money! (Remember those people asking you to join Amway?) What you want to do is you always say that you are just offering excellent investment opportunities for the right person, and you’re not asking anybody at any point in time to lend you private money,! You have great investment opportunities, if someone is interested, super, if not, next, move on, there’s plenty of fish in the sea, and there is plenty of money out there.
All you want to do is get your foot in the door and as you’re building a relationship and just talk about real estate, your real estate business, and in essence, as you’re building that relationship and you’re talking about some of the things that you are doing and some of the opportunities that you are coming across they may just flat out say well do you have an opportunity for me to lend on your next deal.
Personal relationships equals private money, it doesn’t matter where the lead comes from, doesn’t matter if it’s from public records or if it’s from networking at your local real estate meeting or if it’s one of your warm contacts or referral or wherever, so focus on building some relationships with people, focus on building relationships like we’ve talked about here using the conversion strategies and techniques and you’re going to get private money for your deals – it’s as simple as that.
Let’s recap; you’ve learned what private money is all about, where to find lenders, you learned how to use public records to find lenders, you learned how to and how not to contact these lenders and a whole bunch more.
So get out there, take action today, you’ve got the tools, you’ve got the resources, you’ve got the knowledge, you’ve got our support what else do you need, there are no excuses take this knowledge, write out an action plan for the next 6 weeks and apply what you now know. Start building your entire business with credibility and action in mind, because everything else is going to easily follow.
No matter if you’re just getting started, it’s time to take action. If you have been studying real estate for a year, and you haven’t taken any action, guess what, it’s time to take action now, and put this to work for you.
And don’t try to be perfect before you “shoot”, you can always reload and re-aim again; it’s not about perfect, just start taking those small steps, actions each and every day that move you towards your goals. Ready Shoot Aim …..