How to Prepare for Meetings With Potential Private Money Lenders [Including a Sample Script!]

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At a formal one-on-one meeting, you’ll be able to much more easily explain the benefits and inner workings of your business. I recommend creating an information packet about what your company is and what you are offering. This is not a time to skimp on quality, so if your design skills aren’t strong enough for you to create a nice-looking informational packet, hire someone to do it for you through a site such as or

Your informational packet should include the following:

  • Your business name/contact information
  • Your business mission/goals
  • A description of how your business operates
  • An explanation of how you use private money to fund deals
  • Your track record, including photos
  • Referrals from others you’ve worked with
  • Expectations for both parties in the deal
  • Anything else you can include to strengthen your position

Put all this information in a nice binder and simply walk through it with your potential lender. Let them know up front that lending relationships are relationships, and the point of your conversation is to see if you might be a good match, not to pitch something or pressure them into anything.

Related: 4 Ways to Find Private Money Lenders to Fund Your Real Estate Deals

Learn About Your Potential Lender & Their Possible Objections

As much as this discussion is their opportunity to learn about your business, it is also a time for you to learn about their goals, expectations, and personality. Is the individual a nervous person who will be calling you every day for an update? Is the potential lender domineering and A-type, looking to push you around? Or will this person make a great lender with whom you can work multiple deals? Find out!

Your potential lender will also likely have numerous objections to lending you money, so you can either wait until these potential concerns come up or address them proactively. I’d recommend facing objections before they come up and including responses to them in your informational packet.

After all, your potential lender may be thinking of those objections but never mention them to you—and will just simply disappear. By confronting those concerns up front, you can open up the conversation and enter more productive dialogues. Although the individual may have any number of concerns, the most common tend to be the following:

  • What if the deal flops?
  • What if the economy changes?
  • What if you go bankrupt?

Related: Case Studies: How to Use Private Money in the Short-Term, Medium-Term & Long-Term

A Script You Can Use to Address Their Concerns

These are probably the most important questions you can answer for a potential lender. After all, they’ve heard the stories of real estate investments that crash and burn. No one wants to crash and burn. Therefore, you’ll need to carefully explain the different ways and reasons their investment would be secure. For example, I might say the following to address most of these concerns:

“As you know, these are ‘investments’ that we’re talking about, so there is no guarantee of success. There is risk involved with any kind of investment, but as our successful track record testifies, the way we invest in real estate seeks to minimize the risk at every turn.

“Most importantly, we offer a first lien position on any property we lend on, which means if I end up being a thug and break any of the terms in our agreement, you could foreclose on me and take the property.

“Also, because of this lien, you will get all your money back, plus interest, before I ever see a dime. I only make money if you make money. Additionally, we will sign a promissory note that clearly and legally spells out all the terms and conditions of our arrangement.

“Finally we only invest in amazing real estate deals that we will have significant equity in right off the bat, so we are protected against a drop in the economy. Because we buy only good deals, there is significant monthly cash flow following conservative estimates, and we set aside money each month for future expenses.

“All these factors help limit risk and ensure that your investment is as solid as possible.”

By confronting potential objections up front, you are better able to help your prospective lender feel comfortable with you and your company. I also think walking the potential lender through all the numbers on a particular deal is a wise move. Show them a printout of an analysis you’ve done, indicating the cash flow and return on investment you expect. Demonstrate that you’ve done your homework, and you will build the trust needed to make a great lending partnership. If you don’t have a spreadsheet, I recommend trying out the BiggerPockets suite of analysis tools, which al-
low you to look at the potential profit, income, expenses, and other aspects of any real estate flip or rental property. These calculators also give you the ability to print out professional-looking reports to share with partners, lenders, and others. To learn more, visit

[This article is an excerpt from Brandon Turner’s The Book on Investing in Real Estate with No (or Low) Money Down.]

How do you prepare for a meeting with a private money lender? What specific lines do you use to ease their concerns?

Leave your comments below!

About Author

Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, with nearly 100 rental units and dozens of rehabs under his belt, he continues to invest in real estate while also showing others the power, and impact, of financial freedom. His writings have been featured on,,, Money Magazine, and numerous other publications across the web and in print media. He is the author of The Book on Investing in Real Estate with No (and Low) Money Down, The Book on Rental Property Investing, and co-author of The Book on Managing Rental Properties, which he wrote alongside his wife, Heather, and How to Invest in Real Estate, which he wrote alongside Joshua Dorkin. A life-long adventurer, Brandon (along with Heather and daughter Rosie) splits his time between his home in Washington State and various destinations around the globe.


  1. Dan Redmond

    I have a suggestion that comes about via many recent communications with hard money brokers. Hard money lenders have many different considerations and they are often totally opposite each other. Some only want long term, some only short term. Establish a relationship with a broker, they know their money sources. Points are often a small price to pay to get a deal done. I just returned to a broker that I have been doing business with for nearly twenty years. Originally for a buy & holds. Now just to get short term funding to get to the selling finish line. He has different lenders for each. After all this time I did now know this information until just recently.

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