By Better TV
http://www.REIClub.com - Finding Private Money Lenders Is Not As Hard You Think... Here Are Some Simple Ways To Find Private Money Lenders.
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on finding private money lenders, who to look for, how to find them, and how to get their attention.
Why should you find a private money lender?
Because with a bit of elbow grease, not only do you NOT have to deal with banks when you need money for your deals, you get better terms, better rates, more flexibility and control, and a potential pool of unlimited cash.
Characteristic of Private Money Lenders
Not everyone is a good private lender, so you don't want to ask just anyone, you're looking for someone...
- With savings
- Who is nearing retirement 50-60 years old
- Young professionals making money while their expenses are low
- Who sick of getting low returns or losing money on their portfolio.
- Who likes the idea of getting their money out of Wall Street
- Who are interested in real estate but may not know the know how
- Who like the idea of quick, high rates of returns
- Who want more control over their investments
- Excited to invest in real estate
How/Where Do You Find Private Money Lenders?
- Immediate network - family, friends, doctors, lawyers, professionals, co-workers - spheres of influence
- Word of mouth - just talking among peers - but don't just ask people for money
- Other real estate investors
- Private Money Boot Camps/Seminars
- Groups and Real estate investment clubs - drop off brochures, business cards
- Public Records
- Under deeds of trust, look to see if the grantee is an "INDIVIDUAL", write the name and address down.
- If its under an entity, you can try the closing attorney, but NOT always guaranteed.
Note: I think the reason people hate to ask family for money is because they are afraid of losing their money and harming their relationship with them.
Marketing to Find Private Lenders
- Buy mailing lists for a specific area - Print Ads and Direct Mail
- Brochures and flyers - "Want to earn 8-12% return on your money in 60 days or less?"
- Hosting free seminars, luncheons for private money lenders (it's hard to say no to free food) - probably want a deal ready to present
- Also try web 2.0 strategies
- search engines
- squeeze pages
- social media - facebook, twitter, linkedIn
Private lenders are a great sources for funding your real estate investments. As long as you provide value, security, and credibility as a real estate investor,, the chances of you finding a private lender may be closer than you think. The tips provided today are plenty enough to get you started, all you have to do now, is do it.
If you would like to learn how to put on a successful Private Lender Presentation, let me know in the comments below.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.