Posts from 'Private Lending'
That is you’re better at it than most people. You’re better at it than nine out of 10 investors. You take it seriously because you’re investing a lot of your own money in these properties, a lot of your time and a lot of your energy, and you want to get the most you can out of it.
That’s where the money is, because if you don’t manage it properly, the value of that asset declines rapidly. I guarantee you, if you’ve bought a property, put a bad tenant in there and they destroyed your property, you’re looking at $5,000, $10,000, $15,000 of damage. Not that property management can totally eliminate that possibility, but certainly professional management versus mom and pop management makes a huge difference.
Advantages of Property Management
We’re going to go through that and understand that process. We’re going to go through the advantages of property management. Why is it worth you getting on this call for two hours for a series of four calls? What are the monetary advantages of doing it? Are there monetary advantages to it? Why not just read a $12 book?
Sure, you can do that, but everybody knows reading a book is a hard way to learn. It’s not interactive. You won’t have the ability to fire questions at me. Maybe you’re pretty good at property management and you have a couple areas you’re weak at. You won’t have the ability to fire questions at me.
Again, filling a rental. Let’s say we had a $900 a month rental. Filling it 30 days earlier than you would otherwise puts $900 in your pocket. So the monetary issues here are tremendous. Keeping a tenant a second year as opposed to losing them because you didn’t treat them right or you didn’t fix the property right or whatever, reselling a vacancy is tremendously expensive.
You could be looking at two months vacancy, $900 per month, and costs you have to pay to maybe carpet in between tenants, so maintaining a tenant is again a huge monetary issue. So there are clearly some monetary issues here that can be quite overwhelming in terms of cost savings.
We’re going to talk about the importance of education, these kinds of calls tonight, the importance of doing it on a continuous basis, meaning joining your real estate clubs, looking for other resources, maybe join my coaching program at some point down the road, but continue to educate yourself further and more completely as time goes by.
Again, a professional real estate investor continues the education process and never stops. A mom and pop learns a couple things and then stops. We’re going to talk about the difference between the two. How to do things like develop contacts and network, how to work with contractors.
I invite you to learn more about Property Management and get a free audio titled “Learn the 10 Success Secrets of Property Management Every Real Estate Investor Must Know to Manage Your Own Investments Properties for Maximum Profit and Avoiding Tenant Headaches” by going to http://www.realestatewealthtoday.com/PMS.html
Mike Lautensack is the owner of Del Val Property Management LLC, a FULL service residential property management company located in Philadelphia, PA.
rental property?
Have you ever had a problem with one of your tenants like
nonpayment of rent, late rent, complaints about maintenance?
How would you like to become a more professional property manager
and move beyond "mom and pop management".
I just completed a 60 minute audio titled "Learn the 10 Success
Secrets of Property Management Every Real Estate Investor Must Know
to Manage Your Own Investment Properties for Profit and Avoid
Tenant Headaches!"
If you would like to listen to this FREE audio please go to
http://www.realestatewealthtoday.com/PropertyManagementSecrets.html
Here is what you are going to learn and discover in this brand new
tele-seminar:
- What is Property Management and why it is absolutely essential to be successful in real estate investing...
- How to use both offline and online marketing techniques to get the phone buzzing with qualified potential tenants...
- The 3 keys steps you MUST take to screen potential tenants and maximize your potential of getting good long term tenants that can make landlording a joy...
- Discover the advantages of a true professionally lease designed to protect the owner versus a "store bought" lease which favors the tenant...
- How to Get Your Tenants to Stay After the First Year...
- And of course, a whole lot more!
If you would like to listen to this FREE audio please go to
http://www.realestatewealthtoday.com/PropertyManagementSecrets.html
Thanks
Mike Lautensack
http://www.LearnRealEstateInvestingBlog.com/
I found on Youtube today... great way to start the weekend and might inspire you.
To view go to http://www.youtube.com/watch?v=RmTxr7OsPj0
Short but inspirational...
Also do not forget to sigh up for our Tuesday Night Teleconference Tips where we do free 1/2 training calls every Tuesday evening at 8:00 eastern and all calls are free.
Have a great weekend
Mike
The key for real estate investors to finding high net worth (HNW) private lenders is first the marketing image and then a consistency of purpose.
Marketing Image
It's essential to know that most affluent potential investors are NOT attracted to the typical private lending marketing. I receive loan requests all the time from friends, investors and others and most are very ordinary and uninteresting. Very few seem interested in getting to know me or my investment needs.
Affluent investors are not going to respond to the same marketing you use for middle-class mom & pop investors. It takes a unique marketing edge to attract HNW investors.
We all have association links in our brain. Those associations will cue us to make snap judgments based on past experiences.
Take the affluent investor...
Most of their advisers use the personal approach in selling services to them. Have you ever seen the business card of an investment banker or wealth adviser? Was it riddled with "Earn 12% Interest.." and their entire pitch front & back?
Was it printed on bright green card stock?
So do you think the wealthy investor will give much credibility to your fluorescent business card that's printed with 400 words?
Be sure to have quality marketing materials that show you in a professional light.
Consistency of Purpose
It is very important that when marketing to HNW people that you have a consistency of purpose and stay with your marketing. If you plan to send one or two marketing pieces to a HNW with no further follow up you might as well not do any and save some money. You need to have 7 to 15 steps in your marketing plan to HNW.
They will almost never respond to the first couple marketing pieces. These type people are busy and need to see your message on a repeated basis. You should plan repeated marketing step over at least one year period with many different types of marketing including post cards and letters.
But is very important that at some point your marketing tries to get a one on one personal meeting with the HNW person and that is where the real deal will be made.
I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.
One of my coaching students recent asked me how to raise money for real estate deals since she was having NO luck raising money through hard money lenders. In fact, she had just paid some "guru" $25,000 to take a course and the whole course was about how to raise hard money.
Once she and many of the other students in the Guru's class start talking they discover that no one was having any luck raising money with money hard lenders. They quickly learn that most hard lender money are out of business. The few that remain have such high lending requirements that the deals made no sense when you have to put up 50% of the proceeds, sign personally, put up cash reserves and pay interests north of 25%.
She was very confused and upset to pay this kind of money to get information that was grossly outdated and useless in today's world.
I quickly explained that the answer of how to raise money for real estate deals today is to use "private money" not hard money. The difference is with private lending you are dealing directly one-on-one with a private person who may want to invest in your business. You are not dealing with banks or hard money lenders who have no money in today's post financial crises.
Private lending is a consistent source of money to purchase discount real estate deals that you can go back to again and again and again. The more you use private money lenders, the more money that will become available as you as you develop that relationship.
It is important that real estate investors understand that for the next several years you will need to use and develop a private lending program as other sources of money will dry up and be very difficult to get.
I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.
To locate private money lenders people have employed many different successful techniques.
For instance I heard of a real estate investor that found their investor standing in line at a grocery store. It was a long line and he started up a conversation with an older gentleman standing behind him. The topic came around to real estate after the gentleman asked what the investor did for a living. As soon as the investor said he was a real estate investor the gentleman perked up and said how ironic because he was looking for an investment since the stock market had tanked. It is as easy as that. Now that investor is a millionaire and retired at 35 all because he had the guts to talk with someone while standing in line at the grocery store.
Answer ads placed from for sale by owner properties is another excellent way to find private investors. Having an excellent real estate agent on your side will help you greatly research these properties before you waste your time and the sellers asking for a loan they cannot provide. Most multiple listing services provide agents with a way to see if the owner owes anything on the property and how much and to what bank. Weeding out the properties that do not qualify in the comfort of an office is much better than after you have spent the time and energy to plan an offer and get the earnest money agreement to the seller only to have it rejected because they owe too much on the property.
You can still go to another private money lender, instead of working with the home owner but it makes your life a lot easier and makes your business run a lot smoother if you can know before putting in an offer on a property the exact situation the seller is in. This gives you so much more purchasing power because now you can plan your offer to satisfy what the seller needs and also what the property can provide. This also makes your offers a lot more successful so you are not wasting tome on investments that will never make you any money.
The biggest and best techniques when working with private money lenders is to treat them with the respect you would a boss or a prestigious client and keep them informed of your decisions and you will have an excellent contact for years to come.
I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.
1) It’s Easy to Get
I recruited my first private money lender when I was 22 years old . . . and if you’ve ever seen a picture of me, you know that I look young for my age. Soooooo, when I signed up numero uno, I looked like I was 17.
People talk about getting private money like there’s a big mystery behind it and say, “Everyone that I talk to wants to hold on to their money right now and is worried about the real estate market.”
That may be someone’s conditioned response but when you educate them on the process, how it works, why it makes sense, and you ask them good questions to elicit their needs and goals, the investment opportunity sells itself.
Come on guys . . . if a 20 something college drop out that looks like a teenager can do it, you can too!
2) Private Money Is All About Personal Relationships
By personal relationships, I mean relationships that YOU build in order to get private money. I often times get asked what one of my private lenders would charge to finance a deal. And I have to tell them, that’s not what it’s all about.
Get out there, spread the word that you’re a real estate investor, that you have great investment opportunities, and cultivate rock solid personal relationships.
3) No Credit . . . No Problem
Private money loans are based on the property, not the person. When you have a great deal under contract . . . let’s say for $120K that’s worth $180K . . . the person that lends you the money is doing so based on you buying the property far under value.
4) Virtually Unlimited Quantity
A private lender is just an everyday person who lends money to you as an investment rather than investing the traditional way through CDs, mutual funds, stocks, and bonds.
Anyone that you know and everyone that you meet is a potential source of private money. Most people, especially in today’s market, are looking for good opportunities to invest.
You’ll never run out of private money prospects for your real estate investing needs.
5) Process of Harvesting Funds
Check out the article 4 Steps to Harvesting Private Money for Your Deals. It breaks down the process to … till the soil, plant seeds, nourish your field, and harvest the crop.
6) Go for the Formal Appointment
This is one of the vital pieces to the private money getting puzzle. Investing in anything is a serious matter and should be treated as such. Once you pique someone’s interest with your 30 second commercial, you go for the formal appointment.
This is where you meet with all decision makers to present your investment program and educate each prospect on your business model and how it relates to today’s market.
7) Use a Professional Presentation
The presentation that you present to your private money prospects should be professional and specifically crafted for optimal success. If you don’t already have one, you can download the private lender PowerPoint presentation that I cultivated over the years.
There’s a script included to show you exactly what to say and how to say it as well. Also, I’ve studied sales extensively and integrated an advanced sales process into the presentation. It’s some pretty powerful stuff . . . enjoy!
8 ) Make Your List
Here’s your first action step . . .
Now, this is a brainstorming session. Which means, do not attempt to qualify your answers . . . just write down what comes to mind. One of the biggest mistakes I see people make time and time again is to disqualify people.
I want you to write down the first five people that come to mind that you could set up an appointment to present your investment program. DO IT NOW!
If you are already reading this sentence, you didn’t listen to me. Please stop reading this and write down five people.
OK, now write the date by which you will have called them to set up your first private money presentations.
By committing to following through on this action step, you are on your way towards getting your next deal financed with private money.
9) Listen to Henry Ford
I thought I would bring in the wisdom of Mr. Henry Ford to help us out a little bit . . .
“If you think you can do a thing or think you can’t do a thing, you’re right.”
This is powerful advice! Your expectations will play a major role in your success or failure at getting private money. The simple fact that there are thousands of investors all across the country that use private money to finance their real estate deals should be proof enough that you can do it too . . . regardless of age, race, your network, your net worth, or any other excuse you may come up with.
10) Follow Up Until They Buy or Die
The key to my success over the years at building my base of private lenders was aggressively following up with people (after I had shown them the PowerPoint presentation) until they lent me money on a deal or told me to get lost . . . and the latter never happened.
After you formally present to someone, you will have gathered some much needed information from your prospect about their needs and goals. Now as you follow up with them, only present deals that match the criteria that you gathered at your meeting.
And use my philosophy when you need to get a deal financed . . . “Ask until.”
11) Where to Find Private Money Prospects
One of the best places to find potential private lenders is at your local real estate investment club meeting. Often times, these meetings are filled with people who have heard real estate investing is lucrative and want a piece of the action but don’t really want to go through the process of learning how to do it themselves . . . that’s where you come in!!
Educate them on how they can get involved investing in real estate without having to do anything other than writing a check.
Also, check out this article on the 4 Types of People Most Likely to Lend You Private Money.
12) Business Card Reversal Trick
This is where you use the back of your card for a marketing message that piques someone’s interest in your investment program without you having to bring it up in the first place.
Here’s what you do . . . on the back of your business card, have a phrase like, “Learn How to Make High Returns Backed By Real Estate! Email at _____ For More Info …”
Now, when you hand out your business card, you’ll have people ask you what this means. Instead of you just telling people about your investment program, people are asking you about it . . . which is where you want to be.
- Patrick & Trevor
This is Mike Lautensack and I am starting a new Private Lending Mastermind and Group Coaching Program on June 23, 2009.
We are going to have a Free teleconference call on Thursday evening to lay out why Private Lending is the key to your real estate investing success.
Teleseminar Series: Thursday, June 11, at 8:00 PM Eastern
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
- A complete system for achieving success using Private Lenders...
- The advantages of using Private Lenders compared to traditional mortgages or hard money lenders!
- Discover the 6 keys steps to setting up a Private Lending program...
- Where to find Private Lenders and what "NOT" to do in marketing for Private Lenders
- FREE Bonus for everyone that registers and attends!
- And of course, a whole lot more!
It will be this Thursday night (June 11)!
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
Check for the time in your area...
- 5:00pm Pacific Time
- 6:00pm Mountain Time
- 7:00pm Central Time
- 8:00pm Eastern Time
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
Thank You,
Real Estate Wealth Today
http://www.realestatewealthtoday.com/
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
This is Mike Lautensack and I as mentioned last week we are starting a new Private Lending Mastermind and Group Coaching Program on June 9, 2009.
We are going to have a Free teleconference call on Tuesday evening to lay out why Private Lending is the key to your real estate investing success.
Teleseminar Series: Tuesday, May 26, at 8:00 PM Eastern
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
- A complete system for achieving success using Private Lenders...
- The advantages of using Private Lenders compared to traditional mortgages or hard money lenders!
- Discover the 6 keys steps to setting up a Private Lending program...
- Where to find Private Lenders and what "NOT" to do in marketing for Private Lenders
- FREE Bonus for everyone that registers and attends!
- And of course, a whole lot more!
It will be this Tuesday night (May 26)!
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
Check for the time in your area...
- 5:00pm Pacific Time
- 6:00pm Mountain Time
- 7:00pm Central Time
- 8:00pm Eastern Time
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
Thank You,
Real Estate Wealth Today
http://www.realestatewealthtoday.com/
To sign up for this FREE tele-seminar simple click here ===> http://www.realestatewealthtoday.com/Private-Lending-Group-Coaching-Signup.html
One of the things you want to remember as a real estate investor is the importance of establishing a expert niche. Having a expert status makes you stand out in the crowd as an expert in a specific area of real estate investment and will help you to gain more potential private lenders in your area of specialization.
Advantages of Creating a Niche
- Make Your Services Stand Out: Specializing in a real estate investment niche allows you to market your services as unique and distinguishes you from other run-of-the-mill real estate investors who tend to dabble in everything.
- Become the Expert: Having a specific niche in real estate investment allows you to focus on one or two areas and establish yourself as an expert. If you tend to dabble in everything you never really become an expert at anything. It is kind of like the old saying "jack of all trades and master of none." With a niche, people will begin to see you as the "go to" person for your particular specialization in real estate investment.
- Target Your Audience: Specializing in a particular niche allows you to focus on a targeted audience. For instance, if you specialize in housing for the elderly, you will most likely be referred to repeatedly as the expert in investing in housing for the elderly.
It also allows you to focus your marketing plan for that particular targeted audience. Once you become known for helping people in this specific area, you will be more likely to build steady clientele for this particular niche in real estate investment.
How to Create a Real Estate Investment Program
- Self-Assessment: You have to do some self-assessment to find out where your interests are with regard to real estate investment. Perhaps you are interested in helping others find low income housing or maybe you want to deal with vacation second homes. Whatever it is, make sure you like it because you will be dealing with it on a daily basis once your business begins to grow.
- Who You Enjoy Working With: Figure out who you enjoy working with and then discover what types of properties interest this sector of clientele. For instance, if you like working with the elderly, then find out what types of properties are involved with the elderly.
- Geographical Area: Consider the geographic location you wish to work with and the types of properties in that location that interest you. Again, the properties should correlate with the clientele that you are interested in dealing with.
- Decide on Property Type: Find out if you are interested in working with rentals, one-family homes, commercial properties, or something else. Choose one property type and specialize in it. The property type that you work with is one component of many in developing a niche in real estate investment.
Keep in mind that by developing a real estate investment program you are not limiting yourself. Some investors are under this impression and then make the mistake of getting involved in too much with no focus. In reality a program opens up a world of possibilities and establishes you as an expert with a particular focus in the real estate investment market.
I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Money Kit.
| Website: | http://www.delvalproperty.com/ |
| Phone: | 610-240-9885 |
| Fax: | 610-240-9987 |
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