How to attract Private money lenders for real estate investing
In the current real estate market, it is becoming more and more difficult to get financing for real estate investing deals.
For this reason, attracting private money is has become more important than ever before. This article gives you a few pointers you can use to attract private money to finance your real estate investing deals.
Depending on getting a mortgage for your real estate investing deals has become a tight game. Fannie Mae and Freddie Mac will not lend for real estate investing deals.
Even hard money has become tough to get. If you do get a hard money loan, you could end up paying as much as 25% in interest and points.
It is therefore more important than ever before to attract private money lenders or investors. In some cases, only one private money investor is enough for your deals, sometimes you need more than one.
So how do you attract private money investors?
1) Get a good real estate investing website
The first private money investor I had found me on the internet through my private money real estate investor website.
A good real estate investor website tells your story for you and convinces potential private money investors that their money is safe when invested in your deals.
Before they even get to talk to you, they already know most of the details they need to lend you money. They know how you work, and what remains is presenting your deals as you get them.
And when you present yourself to them in person or hand out business cards, your website becomes the most important presentation kit to potential private money lenders.
A good real estate investing website is recommended at the foot of this article.
2) Group presentations
Depending on your comfort level, you can do group presentations to several potential private money lenders. This can get you several private money investors at once and can be a very powerful way of attracting private money.
3) One on one presentations
Chances are that you must meet all your private money lenders. A one on one meeting is easy to organize and manage. I’d recommend you meet in a restaurant for a meal or breakfast where you present your program’s details and benefits.
This keeps the presentation less formal and intimidating as compared to a group of people.
4) Word of mouth
If you are doing many deals and find that you need more private money lenders, your existing private money lenders probably know friends they can recommend to you.
Whenever someone accepts to become a private money lender, you ask them how much money they have to invest in your deals. You can therefore tell if you will need to look for more private money lenders, or if only one will be enough for you.
Do not hesitate to ask if they have friends they can recommend who would like to invest their money in real estate.
5) Existing private money lenders
As long as your existing private money lenders are getting a good return on their investment, chances are they will be more than happy to invest in more of your real estate investing deals.
Do not hesitate to present more real estate investing deals as they become available; you might not need to look for more private money investors.
Successful real estate investing must be driven by a ready supply of private cash available from private money lenders. Targeting these lenders requires that you convince them that their money is safely invested in your deals. Learn how you can attract investing cash through a private money website.
Comments(0)