What can and can't I say about private money

2 Replies

As I build out my new site and write copy for blogs and video descriptions I keep thinking... How can I let potential private lenders know what I'm up to and how great lending with us can be; legally. I Know it varies from state to state, and I know its best to speak with an attorney. And i will. I also would love to hear from the BP community. 

Im currently working with interest only private lenders. Im not offering equity or working with more than one lender per deal.

I've done a few fix and flips and plan to have my first ten doors with partners by october 2020

I know things change once I offer a piece of equity or start pooling multiple investors.

I also know that responses on here are not financial or legal advise. I'm looking for your opinions based on your experience, nothing more. My hope is that this discussion will give me and others here a basic point of reference to form quality questions from when I sit with my attorney. Oh and to keep me from getting myself in trouble by saying the wrong thing in the mean time as I plow through content and create web and marketing material.

Originally posted by @Michael B. :

As I build out my new site and write copy for blogs and video descriptions I keep thinking... How can I let potential private lenders know what I'm up to and how great lending with us can be; legally. I Know it varies from state to state, and I know its best to speak with an attorney. And i will. I also would love to hear from the BP community. 

Im currently working with interest only private lenders. Im not offering equity or working with more than one lender per deal.

I've done a few fix and flips and plan to have my first ten doors with partners by october 2020

I know things change once I offer a piece of equity or start pooling multiple investors.

I also know that responses on here are not financial or legal advise. I'm looking for your opinions based on your experience, nothing more. My hope is that this discussion will give me and others here a basic point of reference to form quality questions from when I sit with my attorney. Oh and to keep me from getting myself in trouble by saying the wrong thing in the mean time as I plow through content and create web and marketing material.

 I understand your concern. First let me point out that anyone with money isn't going to make a decision based on a website. People with money don't look at websites to try and figure out who is for real and who is running their site out of Nigeria. :-)

That being said, you can't promise any rate of return, you can't promise that the investment is "safe" or anything like that. What you can do is describe a successful investor relationship you've had such as :

"Our investors and our project management team bought a 32 unit in PoDunk WA and were able to renovate the Units, increasing cash flow by 26% per Unit based on a $35,000 per Unit cost. This meant a return of 18% yearly on capital invested over the course of 60 months.

We are looking forward to the next project which is even bigger and will require a few more investors to complete the deal. But we are excited and have boots on the ground.

Our Investors like this Passive approach because it frees them up to do what they do best and to do what they love to do and it gives the project management team satisfaction in doing another high quality project."

(Or, something like that - just don't expect it to clinch the deal) It's still a "belly to belly" business for most people.

Excellent Account Closed nothing wrong with talking about the way I've done successful deals before. Thanks for your input. I also agree that the passive approach makes sense. We do great work and we find great deals. Working with someone like me is an opportunity, nothing I have to beg for or hard sell on.