notes to buy<\/a>?”\u00a0 If I had not heard that same question before, I would have been surprised. Sadly, this is not an isolated instance.\u00a0 Several people have asked the same question.\u00a0 In reality, quality borrowers and notes with good repayment capacities are abundant.\u00a0 I use the terms ‘borrowers’ and ‘notes’ synonymously because where there is one, there is the other, and I use the same standards when evaluating both.<\/p>\nSo, Where are the Borrowers?<\/h2>\n
Sure, you can walk into a room, hold up a bundle of cash, and say, “I have quick and easy money to lend for your business” and you will be very popular.\u00a0 However, you are looking for quality borrowers.\u00a0 Let me let you in on something, good borrowers are everywhere.\u00a0 Matter of fact, you likely spoke to at least one or two of them TODAY!\u00a0 Begin your borrower search from your existing personal and business relationships.\u00a0 Those relationships will inevitably lead you to other networking relationships.<\/p>\n
Networking<\/h2>\n
Networking should not be time consuming. By contacting your existing relationships, you will have a good start making private loans. \u00a0As money people find out about your private money lending business, you will have ample borrowers and even new sources of money wanting to do business with you.<\/p>\n
Civic Organizations<\/h2>\n
The Rotary Club, Lions Club, or Kiwanis, to name a few, are well established civic organizations to help get your name and your private lending name known. In addition to being great community service organizations, they present an informal place to meet potential borrowers or potential financial partners.<\/p>\n
Chamber of Commerce<\/h2>\n
Most chamber of commerce organizations offer networking opportunities through After Hours Meet and Greet <\/i>events. In addition to a networking opportunity, these events provide opportunities to be kept abreast of the local business environment, meet potential financial partners or borrowers, and learn the most recent industry trends. Refreshments are usually served.<\/p>\n
Furthermore, chamber of commerce organizations offer member referrals. A chamber receives numerous inquiries for local products and services. Most chambers exclusively refer these inquires to their existing members. Other chamber of commerce member benefits are sales and marketing opportunities, entrepreneurial seminars, and government advocacy.<\/p>\n
REIA – Real Estate Investment Associations<\/h2>\n
Another great place to make contact with potential borrowers is the local Real Estate Investment Association, REIA. REIA clubs are associations of real estate investors and real estate professionals who gather weekly or monthly to exchange ideas, pass deals back and forth, and listen to expert speakers.\u00a0\u00a0These clubs are patronized by motivated and positive people, who need private lenders to fund their real estate transactions.\u00a0 Go to www.reiclub.com for updated information on forming a REIA and for detailed contact information on existing REIA clubs in your local area. When you attend these meetings, bring your business cards and business flyers.<\/p>\n
The Take Away<\/h2>\n
When I began my sales career, right out of college, my boss said, “You’ve got to ask for the business.”\u00a0 Even though my sales career was short lived because I don’t really like heavy sales, the advise still stands: you have got to ask your borrower if he\/she needs a loan.\u00a0\u00a0 From that point, you are going to be a hot commodity.\u00a0 Then, you need to determine who are the quality borrowers.\u00a0 I will talk about that in a later post!<\/p>\n
Happy Lending!
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