Archive for Finding Private Lenders

Private Lending Scams

Some entrepreneurs have been advised to search the internet for private lenders...and there are sites offering this service.  I don't recommend it.  First, it is very difficult to build the trust you need with someone you don't know and can't meet.

Second, there are actually private lending scam artists on some of these sites.  They pretend to be legitimate private lenders, but in fact intend to take money from you, rather than give it to you.

Check out the short video I did on "Private Lending Scams" that you received for becoming a member of the Private Lending Insider.  And don't go surfing online for private lenders until you view.

Private Lending Scams - Video

Hey, nobody's perfect.  In fact, being anxious about "being perfect" will do more to harm your presentation than anything else.  However, you do need to be prepared as possible.  This means have you have tested and revised your presentation.  And you have practiced your presentation until your are comfortable and confident with what you are going to say and how you are going to say it.  Also, you have taken care of arranging all the details of your meeting.

I have given a 2-day training a making a presentation to private lenders that is available FREE to all Private Lending Insider Members that covers all these details, and much, much more.

To Join, go to the home page and click the orange Membership Button.

When you are in the process of networking -- that is meeting people and mutually evaluating whether you and they would be a good match for an investment opportunity, specific terms need not come up.  In fact, your first goal should be to get someone  to like, respect and trust you, before mentioning anything about an investment.  Secondly, when you are promoting your investment opportunity to a private investor, your goal is to paint a picture of a highly profitable, low risk investment.

Once the investor expresses some interest in the investment, then you can arrange a separate meeting where you can discuss the details, including specific terms.

You can find out more details by reviewing the training sessions listed in the "Events" tab.

Most private lending gurus will tell you to prepare an elevator speech--a 30-60 verbal advertisement about your investment opportunity.  The goal is the attract a person's interest in your deal.

However, most people respond negatively to unsolicited advertising.  If you want to raise private money, you first need to Build Relationships with potential private lenders.  The goal is to get them to like you, respect you and trust you.  Of course, you do want them to be interested in your opportunity, but the kind of "in your face" approach that is often recommended, sounds cool but is usually a turn off. 

First demonstrate that you are interested in them, and then draw them into your opportunity.

NetworkingManWoman200x138Many entrepreneurs or real estate investors new to the game of raising private capital think that the quality of their deal or business is the key to getting private money. The private investors who read this are smiling, because this attitude is so typical and so far from the truth.

The truth is that success in raising money from private investors has a lot more to do with you, your team and the relationships you build. It is a process that I incorporate into my GRAD formula (Get Ready, Attract, Deliver).

I want to discuss the “Attract” part of the formula, because unless you are talking to the right people, the best preparation, and best pitch are going to fall on “deaf” ears. And the world of private capital is all about relationships.

Think about it. If someone came to you asking for a $100,000 investment, would you even give them a minute of your time if you didn’t know them and, neither did your colleagues or friends? Not likely.

And most “networking” meetings don’t even deserve that name. Contrary to common practice, the successful networker is Not the one who collects the most business cards. How many people do you think will remember you (or even want to remember you) after a 60 sec interaction which consisted mostly of you pitching your deal or your business to them?

NetworkingMenShakinghands171x166 Real networking is about building successful and "mutually beneficial" relationships with people. The questions the successful networker asks when he or she meets someone is
· Who are you?
· How can I serve you?

“Serve” is the operative word. No matter how much you think you know about a person, or his business, or the organizations she belongs to, the only one who can answer the question “how can I serve you?” is the person themselves.

Don’t make assumptions. Don’t try to figure out what you have to gain. Most people want to have personal and business relationships with “givers” not “takers”. Don’t you?

And now, I’d like to ask:

“What networking techniques have been successful for you?”
And
“How may I serve you?”

Richard Odessey, Ph.D.
For those of you who are interested in raising capital for real estate, I have a useful and free gift for you at http://www.InvestorWealth.com.
If you are an entrepreneur needing to raise capital for your business, I have a useful and free gift for you at http://www.RaisePrivateCapital.com

Private mortgage lenders

The 4th session of the
Advanced Private Lending Summit
(APLS-1009)
completed just a couple of weeks ago and,
as always, everything gets better and more enriching every time it happens.

(Keep Reading to Find Out How You Too can Have The Same Success. Watch the short video at the end of this article.)  

 

Attendees to this APLS came from California, Utah, New Jersey, Texas, Georgia, Illinois, Connecticut, and Maryland.

1009Mosaic


Their backgrounds and their experiences were:

  • A business consultant and coach for small businesses in the South and Northeast,
  • Beginning real estate investors,
  • A long-time successful rehabber and contractor now taking advantage of the unbelievable prices of 2-flats to 6-flats in the city, 
  • A husband and wife team with 25 years property management experience and now beginning their own investments into multifamily properties, and
  • Long time business partners in the rehabbing and flipping niche - now private lenders themselves as well.

Special to note here is that one attendee, Stefan Szlembarski from Illinois, joined the InvestorWealthNetwork.com three months before coming to the APLS and learned what he needed to take the first big step and landed a $300,000 investor for his business.

Stefan also took advantage of the InvestorWealthNetwork.com, 'members only discount', for the Advanced Private Lending Summit and joined us here in Atlanta to really turn the fire up under his new private money generating abilities.

(Watch this clip of the 1st day of the APLS where Stefan tells us about his successes just from the information he got from his InvestorWealthNetwork.com Membership, AND USED to raise $300,000.)

private money bad creditI just got this email: Will bad credit hinder me from getting a private investor?
Sincerely,
Tammy

Well, Tammy the answer is: Your credit has absolutely nothing to do with raising money from a private investor.

There are 2 reasons:

1) The private investors cares about the 5 key secrets:
-What's in it for him (or her)? - that is the return on investment
-Return OF Investment - the soundness of your exit strategy
-Risk - how well have you structured the investment to minimize the financial risk to the investor
-Credibility - Are you a company? Does your company have experience, advisors and professionals that can make sound decisions.
-Trust - do you have a relationship with the investor. Have you built up his trust that you can do what you say?

2) The second reason is that the investment should not be about YOU. It's about your company. After all, if you invest by buying shares of IBM or General Electric, do you know the credit score of the CEO? Heck, do you even know who the CEO is? Does it matter? No, because you're investing a company with a track record and resources to carry out it's mission and achieve its goals.

You should present your investment the same way. Listen to some of the interviews with private lenders, and our articles on structuring the financing for your business and creating an impressive business plan.

When you'd like to go to the next level, you may want to consider attending our Advanced Private Lending Summit where we work with you 1 on 1 to create your entire private lending program including your own personalized presentation to private lenders.

EVERYONE who has attended has loved it, and are now busy raising money from private individuals. We hold our Summit 2 times a year here in Atlanta.

Check your Members' Area for the schedule AND get a Members Discount on the Tuition.

Here's a comment from just one of our last attendees:

"..Save your money as quickly as possible [so you can go to this].

I was at that seminar and now will be giving my presentation to a few MDs this week.

Having the ability to practice it in front of the group and hear Richard's insightful critique sure did help. More to follow, after the presentation."


- Vivian Hooton vivianhooton@gmail.com