How to Get Private Money Lenders Beating Down Your Door

March 25, 2009 | By | 11 Replies More

Private Money Real Estate InvestingFinancing, Financing, Financing! That seems to be the MAJOR sticking point for real estate investors these days.

If you’re one of our regular readers, you know that we teach a great deal on how to get private money. But, I still get tons of comments from investors like . . .

= > I don’t want to ask people I know for private money . . . where should I start?

= > The people that I know with money aren’t interested in lending right now . . .

= > How can I get private money without experience as an investor and a proven track record?

= > Everyone I talk to is holding on to their cash right now. Are there really people out there lending private money in today’s market?

. . . and the list goes on and on. If you look closely at these comments, all they really are is excuses.

More often than not, most people just want something for nothing. They want the easy way out. They want to reap the harvest and have private lenders beating down their door but aren’t willing to till the soil, plant the seeds, and nourish them into full bloom . . . which is what it takes to get private money lenders for real estate deals!

The farmer doesn’t demand a crop from his field whenever he feels like it. He doesn’t plant his seeds in the fall. Neither does he plant his seeds in the spring and go on vacation for the rest of the year.

A farmer knows that to have a bountiful harvest, he must till the soil, plant seeds, and tend to his crop. He knows there is a specific order that must be followed and that even when he “does everything right,” he is still not guaranteed a harvest. He must work hard, work smart, be flexible, and learn from everything he experiences day by day.

4 Step Process to Harvest All the Private Money You Need for Your Deals

Step 1 – Till the Soil

There are two things that every person that you know and every person you come in contact with should know . . . you are a real estate investor and you have investment opportunities available.

But that’s it at this stage in the process. You’re not explaining the details of your investment program, how the investment is secured, what rate you are paying, how it’s all structured, etc.

Your job when “tilling the soil” is to simply pique interest with anyone and everyone. And you do this by using what we call the “Half Minute Private Money Hook” (aka elevator pitch).

Basically, you want to tell your prospect what you do so that a second grader could understand, target pain points (like losing money in the stock market or meager returns from CDs, bonds, mutual funds), give them your biggest benefit, and get a “yes”. To learn the exact script for the “Half Minute Private Money Hook” Click Here (it’s covered in one of the training videos).

Using this technique, when you come across a good prospect for private lending, they’ll start asking you detail questions about your program. That’s when you know you’ve done your job “tilling the soil”. Now that interest has been piqued and your prospect wants to know more, go for the formal appointment.

Here’s another quick tip for ya …

Do not disqualify anyone as a potential private money lender. That’s one of the most costly mistakes you can make when getting started. You don’t care if someone has the wherewithal to invest or if they’re currently interested in becoming a private lender.

Alrighty then … on to …

Step 2 – Plant Seeds

When you have a formal sit down appointment with a private money prospect and they leave the appointment with a FULL understanding for exactly how your program works and where they fit in the process, you have successful planted a seed. Nice work!

You want to continuously set appointments for practice, you want them for feedback, and want one more person out in the world to know the ins and outs of your program. If someone you meet with never invests with you in a million years, that’s fine! Who knows who they’ll tell about your investment program. When the topic of real estate investing comes up, chances are, they’ll want to contribute to the conversation. That’s when the word about your investment opportunities starts to spread.

If you use the free private lender PowerPoint presentation that we provide, you will find out a ton of good information from your prospects about their needs and goals. There are specific questions built into the presentation so that you will know exactly how to match the right prospect with the right deal going forward.

From here, you want to . . .

Step 3 – Nourish Your Field

You’ve probably heard before that . . . The Fortune is in the Follow Up!

Well, that’s the whole truth and nothin’ but the truth when getting private money. You want to create a list of people that you’ve planted a seed with (meaning you’ve formally presented to them and they understand your investment program), so that every time you have a deal that needs funding, you can just go down the list calling every private lender prospect that could be a match.

And you follow up with these prospects until they “buy or die.” Until they tell you to get lost and quit calling them or until they write you a check to fund a deal. The more contacts that you have with each individual, the more you build trust, credibility, and your chances that they’ll become a private lender.

You’re nourishing your field by following up continually and setting yourself up for a copious harvest!

Step 4 – Harvest the Crop

You make the call saying, “Hey Bill, thought of you when another great investment opportunity came up and . . . not sure if it would be right for you but thought I would at least call and tell you about it . . . you see, we’ve got a great opportunity for the right person. It’s not going to last long though because I’m going to have a private lender committed to funding it by Friday. Is this something you might be interested in?”

And low and behold, the private lender prospect says, “YES.” You’ve successfully tilled the soil, planted the seed, and nourished your field until harvest.

Now, get back out there and start all over again . . . you’re on your way to having private lender beating down your door! Keep up the good work!

Recommended Private Money Getting Resource

Want more free private money training? Click here NOW to access my case study vault which contains free videos of people all over the country making a fortune getting private money lenders for real estate deals.

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Category: Real Estate Investment Financing Strategies

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Comments (11)

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  1. paris stout says:

    Im a Real Estate Broker in Missouri and I have a property that is under contact.The property is located just north of Kansas City Missouri. I need money to fund the purchase and rehab of the property.The property is selling for $59,000 and will need $30,000 for the rehab of the property.The property (arv) is around $160,000.
    If you can help please call.
    Thanks, Paris Stout 816-985-2624

    office 816-264-2400

    fax 816-264-2600

  2. Patrick Riddle says:

    Hey Paris … I’m only focusing on properties in my local Charleston, SC market right now.

    But, I can help you learn how to get private money for you deal. Make sure you grab the free private money training over at http://www.mustknowinvesting.com/freepmvideos

    Let me know if I can help with any other private money questions.

    ~ P-Rid

  3. saeed says:

    Need purchase … private funding for home.

  4. CEDRIC AND STAR KITCHEN says:

    HI PRIVATE MONEY LENDER NEEDED TO CLOSE A SHORTSALE TRANSACTION SHORTSALE IS COMPLETED NEED TO CLOSE ASAP FOR 209K ARV 295K PLEASE CONTACT STAR 586-634-6559

  5. Patrick Riddle says:

    Hey Cedric/Star … if I offered private loans myself, I’d contact you. But, I use all my private money for my own deals locally.

    Make sure you check out some of the resources (links) in the article above. They’ll help you learn how to get your own private lenders easily.

    ~ P-Rid

  6. Sharon Jackson says:

    Hi I’m a real estate investor,living and work in Texas. I have a deal of a life time, trying to get funded at $800,000.00 property I currently hold a contract on, the property is worth over $2,000,000.00. The property needs about $200,000.00 worth of work which I have but first I need a loan for the $800,000.00 to purchase the property.. I need help …. Sharon Jackson 832-495-3966

  7. Bobby says:

    Hello P.Riddle,

    Great educational blog! I’ve learned a lot so far. Now, I am looking into private money. I would like to view your 3 hour Private money training video but it is not available? Please advise.

    Thanks!

  8. Patrick Riddle says:

    Sharon… sounds like you’ve got a great deal on your hands. You may want to contact Alex and see if he can help.

    Alex… thanks for tossing your email address out there for people looking for private loans.

    Bobby… for the free private money training, sign up at http://www.mustknowinvesting.com/freepmvideos

    ~ P-Rid

  9. Abrahamdiya says:

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    This is an international investment/financial company. Our duty is to assist people or companies who are looking for financial help for different purpose. We are also investors and also help people acquire the properties they need with little interest and at any credit rate. We have been on this for many years now and we travel all over the world to visit and also for investments. We offer both Startup loans, Personal loan, Real estate loan, Venture capital, Construction loans, Educational/Agricultural loan, Mobile home loan, Debt free loans, Purchase loans, Business/Refinance loans e.t.c to interested persons from any country. If you have a property you like and you do not have the money to purchase it or you have little and need balance money for the property, we can help you purchase the property with little re-payment. Have you been turned down by your local lenders, banks or anyone, this is your time to get what you need. Do contact us through this mail if you are interested in a loan or need investor for your properties.
    abrahamdiya@blumail.org

  10. Mabel Margaret says:

    This article offers best details about private money lending solutions!

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