The below are two secret methods I use when I either meet people or when I am networking to get private money.
1. I believe most people HATE being asked for money directly by a friend. They probably feel they will never get it back and / or they hate the thought of having to say “no” and straining their friendship. This is the reason I always ask in the “THIRD PERSON”
“Hey Tim, I was hoping you might be able to help me, I know this is not for you BUT Do you know anyone who would be interested in making an 8 – 12% return on their investment secured by real estate?”
Saying it that way takes the strain of asking directly your friend, it also asked for his help, it also “excluded him” so he wants to know why you did not ask him? So now he is probably thinking.. well what about me?? If not, he may know someone. Try it out and see how it works.
2. When I meet someone new I always ask them what they do, OF course they say something like ” I am a teacher”
Now, you come back with ..” WOW.. That’s great. I help teachers make money investing in real estate” .. They always come back with HOW??? Now the door is open for you to tell them your setup. Give it a go!
Other methods to find private money is to hang out at different events
- I used to hang out at my local real estate investors association. I would look and listen around the room to see who the players are. I would also ask if they knew private money lenders.
- Remember to talk to the vendors in the room. They have been around and know what’s going on
- I also would talk to CPA’s about people that have self directed IRA’s that might be interested in real estate investing and using their IRA to fund the deals
- I would also hunt down the real estate closing attorneys and title companies and ask them who is doing private money.
If you are shy in talking to people, you can also rent list of high net worth individuals and market to them via the post office.
You can also use Google Adwords to advertise for private money lenders in your area.
Here is a great source of UNSECURED Business Credit http://BusinessUnsecuredCredit.com/