We follow up with our members regularly…

I sent Jacob an email asking if I could help him with anything and here’s his response…

——–
“Very refreshing. Thank you for this. 

I have figured out how to compile my mailing list at the court house (there were 33 private loans in my county in the month of September). This doesn’t include family trusts.

Do you mail to family trusts or the rep for the family trust or do you exclude their info from your mailing lists? 

If you have any more info on exactly how you convert a private money lead from – a person calling about my letter - to someone who’s funding my next deal. I would greatly appreciate it. There seems to be a dark spot with regard to that process for me. 

Thanks for everything! You’re the man, so glad I found you.”

——–

Congrats on using the PMOD process to find 33 private lenders in your area through public records! Nice work Jacob!

Ok, on your first question, I only mail to private individuals who are lending money… and exclude trusts, businesses, etc.

By targeting individuals who are private lenders, you can typically get better terms.

The Private Money Through Public Records “Conversion” Process

As far as the “conversion process”… once you start getting calls from private lender prospects, how do you convert them to funding your next deal?

Here’s  how…

First, contact them to set up a “get to know you” meeting. This could be over a cup of coffee (my preference) or over lunch.

Getting private money is all about personal relationships… so in this meeting, you’re just looking to find out more about the prospect, their hobbies and interests, focus/niche in real estate, goals, etc.

This is NOT the time to go into detail about your private lending opportunities.

When the prospect shows interest in learning more about what you do, it’s time to go for the formal appointment… where you show them my private lender PowerPoint presentation (right click and “Save link as…” to download). This is where you go over all the details.

Make sure to customize the presentation to suit your biz… based on your niche, how you structure your private money loans, etc.

Now it’s time to show ‘em your presentation…

This is where you educate the prospect on your business, the current market, why you borrow from individuals, general guidelines on the private lending opportunities you offer (not a specific deal at this point)… and the most important part… you “diagnose” your private lender.

After that, you know exactly how to present the prospect with the perfect investment… based on their personal goals and needs.

Every time you come across a deal that matches with your prospect (range of funds, availability, terms), pass it by ‘em.

And like they say, “The fortunes in the follow up!”

With each follow up, you build more rapport, trust, and credibility… and before you know it, BOOM!

You’ve got a private money lender on board… ready to fund your next deal.

Happy Private Money Getting!

- Patrick

I’ve been investing full-time for almost a decade now and still learn a ton of new stuff from deals that I do, from successful students and other industry experts.

With what’s going on right NOW in today’s market, there’s a BIG opportunity to implement this new flipping strategy… PLUS there’s not much competition yet.

And BTW, this has nothing to do with short sales and foreclosures :-)

Watch the video below…

Now that you know about the opportunity with these high-end home situations… if you’d like to learn more, get registered for this in-depth webinar training. You’ll learn how to do these deals even if you don’t have any money or good credit.

Enjoy :-)

- Patrick

P.S. – As I mentioned in the video, keep an eye out for emails with more training and tools on this new flipping strategy.

Next I’ll show you how to find these deals (and you’ll get to download a proven direct mail template for FREE)… AND then I’m gonna teach you exactly what to say when talking to these homeowners. Something to look forward to.

In the meantime, to learn more about this new flipping strategy, get registered for this web training.

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A Note From MustKnowInvesting.com – Advertisers and Recommendations – From time to time we’ll let you know about certain resources that we feel may help you reach your goals in real estate or life. All resources are ones we’ve personally looked at and reviewed before we felt confident to recommend them to our readers like you. With recommendations like this you should assume we are compensated in some way when you decide to buy, and just like with anything… you should do your own due diligence before you invest in anything to make sure it fits your goals.

If you’ve been afraid to make an offer because…

(a) you don’t have a buyer lined up

(b) you don’t have a funding commitment yet

… this is gonna be a BIG eye-opener for you :-)

Tips For Making Offers On Properties

Watch the video below…

If you have any questions on the clauses that I went over, toss ‘em in the comment area. Let me know how I can help.

And like I mentioned in the video, check out this technique that triples the amount of offers you get accepted. It’s pretty darn clever.

Happy Investing!

- Patrick

P.S. – It’s been beautiful in Charleston lately. If you ever visit, make sure you hit up the Windjammer on Isle of Palms. I’m there pretty much all the time now that I only live a block away… so you’ll prob see me there. Check out the view :-)

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A Note From MustKnowInvesting.com – Advertisers and Recommendations – From time to time we’ll let you know about certain resources that we feel may help you reach your goals in real estate or life. All resources are ones we’ve personally looked at and reviewed before we felt confident to recommend them to our readers like you. With recommendations like this you should assume we are compensated in some way when you decide to buy, and just like with anything… you should do your own due diligence before you invest in anything to make sure it fits your goals.

You need to check out this incredible story about a 14-year-old girl, Willow Tufano, who just bought a house in Florida. She paid $12k for it and is renting it out for $700/mo!

14 Year Old Buys Distressed Home

Watch the video…

Isn’t that amazing? As soon as I heard about it, all of the excuses I have been telling myself not to do one thing or another over the last few years came to mind. It’s a true testament to the thought that anyone can make what they want out of life happen if they just go for it.

Leave your thoughts and comments below.

Happy Investing!

- Jen

MKI Member Experience Team

1) Market to Sellers Who Have Owned Their Properties for Ten Years or More  

This is common sense but the longer someone has owned a property, the more potential for equity. How do you find these owners?

One way would be to buy a list through a list company…  but that can be pretty expensive.

(Enter: Huge Money-Saving Tip)

I get all my lists for marketing through my local county courthouse in the “tax assessor’s office” and it ONLY costs $50 for each list.

So if you’ve been paying thousands for your lists, check with your local county courthouse first and save yourself some serious moolah.

2) Negotiate With the Seller to Take Back Most of the Financing

This is a lot easier than you may think.

On my first multi-unit deal (which was a 4 and 6 unit apartment building in Clemson, SC), the seller financed 100% of the purchase price.

Why would a seller want to finance their property?

Maybe for tax reasons. You’re only taxed on the funds you receive for selling a property, when you receive them. So seller financing is a great way to defer capital gains.

Maybe the seller has fully depreciated the property and it makes better investment sense to convert from owner to lender.

Maybe the seller is highly motivated and will take whatever offer they can get.

3) Bring in Private Money for the Cash Needed

Use private money for the down payment, closing costs, renovation, all costs associated with the deal.

And since you got the deal seller financed, you only need a small amount of private money in comparison to the purchase price.

There ya go… that’s the simple 3-step process to buying big multi-unit deals :-)

Leave your thoughts and questions in the comment area.

… without doing the online searches herself

… and without going to the courthouse

So I shot a little demo video of a tool that finds private lenders for you in ANY state that you want.

Basically, you just select the state, county, and date range… hit “search” and you’ve got a list of private lenders.

Find Private Lenders Now On Autopilot

Check out my demo video below…

Pretty cool, ehh?

If you’re interested in automating your private lender finding, check out more info on the find private lenders now software tool.

Even if you’re not interested in it, click that link… there’s a video that goes over a lot more info than I did in my video.

If you have any questions, toss ‘em in the comment area.

Happy Automated Private Lender Finding! :-)

- Patrick

P.S. – In a few counties in the US, you either a) can’t access private lender info through public records… or (b)it costs a lot for every record you look up.

If that’s you, this could be the solution you’ve been looking for.

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A Note From MustKnowInvesting.com – Advertisers and Recommendations – From time to time we’ll let you know about certain resources that we feel may help you reach your goals in real estate or life. All resources are ones we’ve personally looked at and reviewed before we felt confident to recommend them to our readers like you. With recommendations like this you should assume we are compensated in some way when you decide to buy, and just like with anything… you should do your own due diligence before you invest in anything to make sure it fits your goals.  Thanks for being an MKI supporter and fan!

So which type of person are YOU?

“There are two types of people in the world. Both are blessed to enter a wide-open grand, green field of opportunity under which lie vast treasures.”

First Type Of People In The World

“One type looks around the field, grabs the nearest shovel, and begins digging a hole in the ground, looking for gold.

When this person gets a few shovels deep and discovers either (a) that they aren’t hitting gold as fast as they thought they would, or (b) that there isn’t as much gold as they thought, they stop digging and move to another random point in the field.  They grab a newer, fancier shovel and start digging again, looking for gold. Again they find disappointment, so they move on and on and on.

At the end of this person’s life, their field of opportunity looks like a bunch of half-dug holes.”

Second Type Of People In The World

“The other type approaches the field of opportunity differently. They scan the horizon and decide where they would like to stake their claim in life.

They, too, begin digging for gold. They, too, may quickly discover either that (a) they are not hitting gold as fast as they thought they would, or (b) there is not as much gold as they thought.

But here is where their fate unfolds differently than that of their unfocused peers: They keep digging. They think to themselves, “There is some gold here – maybe not as much as I thought or as easy to reach as I thought, but there is gold.” They keep digging, working hard, staying focused.

And soon enough, they hit the big payday, that vein of gold that is more abundant and awe-inspiring than they ever imagined. They set a foundation there – a fencepost of fortune, if you will. And then they move to another spot, aligned with their previous success, and they dig deep again, setting up another foundation and fencepost of wealth.

At the end of this person’s life, their field of opportunity looks like a line of strong foundations stretching into the sunset.”

So… Which Type of Person are YOU ?

It does NOT matter which type of person you’ve been in the past. What matters is which type of person you’re going to be for the rest of your life.

Leave your thoughts and comments in the comment area.

-Patrick

After a couple lenders backed out on me early on in my career leaving me high and dry, I finally learned how to handle this problem once and for all.

Here’s what to do…

4 Lessons To Prevent Private Lenders From Backing Out

Lesson #1 – Beware Of The “Casual Yes“

First, have you sat down with your private lender prospect and walked them through my private lender PowerPoint presentation? (right click and “Save link as…” to download my presentation)

If not, that’s the next step.

Many times, investors will start telling everyone they know about private lending, the rates and terms they offer, the paperwork involved, and more… in a casual setting. At a REIA meeting, on the phone, grabbing a drink at a bar… instead of waiting to go over those details in the formal sit down appointment.

When this happens, often times you’ll get a “casual yes“ from your private lender prospect.

They act interested… but since you didn’t take them through a formal process, they don’t have all their questions answered and aren’t really committed… even though you think they are.

Here’s the most effective private money getting process I’ve found and how to do away with “casual yes’s“…

Step 1 - Paint the big picture

Tell people that you’re a real estate investor. Get ‘em interested, intrigued with your business. Use techniques like the half minute private money hook and the biz card reversal technique to get other people asking you for more info about your investment opportunities.

Do NOT go over details in this step (ie rates, paperwork, etc).

Then transition to…

Step 2 - The formal appointment

This is where you present your private lender presentation and go over all the details. Make sure all decision makers are there (if someone is married, that usually means both spouses).

In this appt, you’ll be educating your prospect on your biz model, why you borrow from individuals, how they fit in the process… you’ll be answering their questions and objections… and you’ll be gathering information about your lender so you know exactly what they want in a good investment.

Then you’re ready to…

Step 3 - Pass specific investment opportunities by your prospects that match up with their goals and needs

Now when your private lender commits to funding a deal for you, it will be an educated decision. It’s much more likely that they’ll come through after this process, than from a “casual yes.”

But, there are still some steps to take to ensure 100% that you’ll get your deal funded.

Lesson #2 – Are You Crazy? The Market Is Terrible!

After your private lender commits to funding a deal, there’s a future objection that you need to handle that may come up before closing.

For example…

So your private lender says “yes,” then goes to work the next day and tells one of their colleagues about the decision to lend money on a real estate deal… to which they reply, “Are you crazy? The real estate market is terrible!”

Here’s how to handle this… right after you’re lender says “yes”… say, “If you happen to talk to anyone about your decision to lend funds on one of our real estate deals,  you’ll probably get a response like ‘the real estate market is in shambles’ or ‘are you crazy’ or ‘it’s a horrible time to invest in real estate’…

… so I just wanted to prepare you for that. That’s how the mass media paints the picture about investing in real estate… but you and I both know that NOW is a great time to invest in real estate based on what intelligent investors do… buy when the market is down.”

Now, if someone says something about the terrible market or it being a bad decision to invest in RE, your private lender expects it… and doesn’t have to defend their decision because they knew this was coming.

Lesson #3 – Committed Funds Have A Shelf Life

In my investment biz, we’ve always said that good deal have a shelf life. Meaning if we don’t close quickly, we may end up losing the deal.

Well, it’s the same with private money. Wait too long and you’ll risk losing access to the moolah.

The quicker that you can put a lender’s funds to work in a deal after the commitment, the better.

Lesson #4 – The Worst Number In Business

This is something that you probably don’t want to hear… that may rub you the wrong way… but I’m here to tell you what you need to hear, not what you want to hear.

If a private lender gets cold feet and walks away right before closing and you lose the deal…

… it’s YOUR fault.

Sure, you can get ticked off, point fingers and blame the person who “caused you to lose the deal”… but I’m here to tell you that YOU put yourself in that position.

The worst number in business… 1.

If you ever rely on ONLY one source of funding, the only person you can get upset with if you lose a deal is yourself.

You want (need) multiple funding options to ensure that you NEVER lose a great deal.

Always have a back up lender in place.

Leave your thoughts and questions in the comment area. Let me know how I can help :-)

Happy Investing!

- Patrick

If you missed the first video on analyzing real estate deals, go check it out first. It’s over on our PMBP blog.

As Daniil says, there’s nothing sexy about crunching numbers and math. What’s sexy is making money and growing a huge real estate operation.

But to do that you MUST…

- make the right offers

- not overpay for deals

- leave nothing out of your analysis

- know your numbers cold

Analyzing Real Estate Deals | Deal Analysis Software

Watch Daniil’s step-by-step deal analysis video below…

Good stuff, ehh?

Before you go, grab your FREE version of Daniil’s real estate deal analysis software. After you sign up for it, he’ll shoot you an email with download instructions and additional training.

Happy Deal Analyzing!

- Patrick

One of our Private Money Blueprint members (who knew absolutely NOTHING about the REI biz) used what you’re about to learn to get an experienced mentor WITHOUT spending a dime. And today, he owns over $8 million dollars worth of real estate.

How to Get A Free Real Estate Investing Mentor

In the video, I break down the step-by-step process that you can follow to get a mentor at no cost.

Check it out below…

Leave your thoughts and questions in the comment area below.

Happy Investing!

- Patrick