Is finding money for your deals the biggest problem area for you as an investor? Would having access to mega funds help you do more deals? Are you losing out on opportunities because you have to have some “skin” in the game?<\/p>\n
Private money is the answer.\u00a0\u00a0 Stop struggling to finance real estate<\/strong> deal after deal, I decided to learn how to recruit private money<\/strong>.\u00a0 I have discovered that there are 3 “Vital” Keys to having all the money you\u2019ll ever need for your real estate investing deals.<\/p>\n That\u2019s the most important thing that you can start doing right now! Every person that knows that you are an investor and that knows about your investment program, whether or not they are in a position to invest, is one more seed planted in the soil.<\/p>\n Here are a few examples of planting seeds:<\/p>\n Any form of getting the word out about your investment program is “planting a seed”.<\/p>\n Over the first couple years of recruiting money, on average, it took around 4 months to get someone to invest with us<\/strong><\/span> after first mentioning our program and planting the seed.<\/p>\n Be patient! (this is the reason most of you don\u2019t have enough private financing\u2026 you don\u2019t stick with it long enough\u2026 remember, these people are putting their hard earned money in your trust and need to get to know you before they just write you a huge check)<\/p>\n There are two types of people most likely to give you money:<\/strong><\/p>\n Keep this in mind when making your list of people to contact for funding for your real estate deals.<\/p>\n Once you gain some momentum and have investor clients that have experience in your program, go for the third type of people most likely to invest with you. And they are the best there is\u2026.<\/p>\n Referrals. <\/strong><\/p>\n After a couple years of working with private money lenders<\/strong>, I didn\u2019t have to go out and seek additional clients.\u00a0 They just came to me.<\/p>\n Your job, when meeting with a potential investor, is to “sell” the idea of investing in your program.<\/p>\n In order to sell that idea, you must ask good questions<\/span>! Asking good questions consist of two types of questions:<\/p>\n Questions about the past <\/strong>will tell you what kinds of investments someone has taken part in, what rate of return they are accustomed to getting, how previous investments have been structured and the results of their investing experience. This can tell you so much about how to set up an investment that works for them and that goes with their investment strategy.<\/p>\n Questions about the future<\/strong> will be more centered on their future goals. These questions will elicit whether they are looking for long or short term investment opportunities, if income is important to them and so on.<\/p>\n Never ask in the first person, I recommend saying.\u00a0 “Hey Bob, I know this is not for you, but would you happen to know anyone that is interested in earning a good return on their money in real estate?”<\/p>\n By asking good questions, you can give them what they want.\u00a0\u00a0 And if you are able to give them what they want, they will invest with you!\u00a0 Bottom line.<\/p>\n Just because you can get a deal financed doesn\u2019t mean you should go through with it.<\/p>\n It has to make sense for you<\/span><\/strong> the investor.\u00a0 This is where the “creative” in creative real estate investing gets its name.\u00a0 There are limitless ways to structure an investment loan.<\/p>\n When structuring a real estate investment loan, it all starts by asking, “What\u2019s my Exit Strategy?<\/strong>”<\/p>\n Your exit strategy will ultimately determine the ideal structure for your private money loan.<\/p>\n There are two basic pay structures to an investment loan: <\/strong><\/p>\n Whether you choose to pay a nominal rate or split profits with your investor, the easiest money on you would be\u2026<\/p>\n “No payments, loan is repaid when the property sells<\/strong>.”<\/span><\/p>\n Setting up an investor loan like that will put you in the driver seat. If you plan to hold the property for some time, it may make more sense to make regular interest payments to your investor.<\/p>\n Those are 3 vital keys to getting millions in Private Money for your real estate investing <\/strong>deals.\u00a0 Of course, this isn\u2019t meant to be a comprehensive tutorial\u2026. it\u2019s an excellent primer to get yourself off on the right foot.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Is finding money for your deals the biggest problem area for you as an investor? Would having access to mega funds help you do more deals? Are you losing out on opportunities because you have to have some “skin” in the game? Private money is the answer.\u00a0\u00a0 Stop struggling to finance real estate deal after … Continue reading The Secrets Keys to Finding Private Money<\/span> “Must Know” Key # 1: Plant Seeds!<\/h2>\n
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“Must Know” Key # 2 : Ask Good Questions!<\/h2>\n
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“Must Know” Key # 3 : Structure the deal so that it works for you!<\/h2>\n
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