One of the most effective methods of raising private money is talking to everyone you come across. Open the conversation with how you work with private individuals to offer them a higher return then they are seeing in CDs and savings (and the stock market based on recent record breaking declines). The best way to share this message is with a well rehearsed elevator speech.

Feel free to use my own personal elevator speech that you can use or adapt to use with your own real estate investing business and for raising private money for your own deals.

You should practice your elevator speech until you can use  it  casually and effectively from memory.  A  Private Money Elevator Speech is only 30 to 60 seconds designed to be able to explain how your Private Money Program works to every person you meet.

Networking and word of mouth is the best way we know of for Raising Private Money , so tell everyone.  From there is simply a matter of following up for a face-to-face appointment to make your full Private Money Presentation.

This is a required step for all our Private Money Coordinators and is part of the New Private Money Coordinator Checklist.

While you should personalize it to make it your own, here is an example of a Private Money Elevator Speech:

Example 1

" I buy and sell real estate.  When I buy real estate for cash, I use private lenders.  Our company pays our private lenders 6 to 12% on notes secured by the single family homes that we purchase. When we find a deal that we are considering buying, we call our private lenders and offer them to make a loan secured by that property. They can decide whether to invest or to pass on that deal at that time. Do you know of anyone that is not getting a consistent 6 to 12% return on their retirement or other savings?"

Example 2

"I work with a national real estate investing company and they often buy single family homes for cash and then rent or sell them to people that need help purchasing a house. When the company buys the houses, they use private lenders to raise the cash to buy the house and can offer 6% to 9% to their private lenders. Instead of lending money to the bank at a low rate and then having the bank make loans at a high rate, my company offers the private lenders the chance to be like the bank and earn a much higher return secured by a note on the real estate they purchase. Do you know anyone that has any savings or retirement funds that are not earning a consistent 6 to 9% return secured by single family homes?"

We use the following Private Money Presentation when we give face-to-face (and in the rare cases where we can not do face-to-face, telephone) presentations to potential Private Lenders.

Our Private Money Presentation should include:

* Cover Page * Program Objectives * Table of Contents * Overview * Why We Utilize Private Funds * Key Benefits To Our Investors * Sources Of Capital For Our Investors * Sample Deals * How Our Program Works * Investment Cycle * Frequently Asked Questions and Answers * Glossary * How To Get Started

A Sample Private Money Presentation can be found HERE