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Posted over 2 years ago

How To: Raise Private Money

How to Raise Private Money

Because I always see info being passed around that isn't entirely true, let me help those who want to find private money. I have never, nor will I ever, used institutional lenders. I have never had to pay points. I have never needed to have "skin in the game". *And yet I bought double digit rentals with literally $0 out of my own pocket. *

What is a Private Money Lender?

Private money lenders allow you to use their capital in exchange for interest payments over an agreed upon timeline, and interest rate.

Where Do I Find Private Money Lenders?

Write down a list of 50 names: people who MIGHT have the capital to lend to you Go through your phone contact list.
Go through your Facebook Friends.
Go through your IG friends.

Think of everyone at your gym. Think of your coworkers.
Think about your neighbors.
What about local business owners? Your doctor or dentist?

Your kids classmates parents.

How Do I Make My Pitch?

1. Make a Facebook post on your personal page that shares what you are trying to accomplish. Let people know what you're doing. If they don't know what you're doing, they won't know that you need help. And if they don't know that you need help, they won't know how to help you.

2. Once people respond, invite them all to a Zoom Call to hear more about what it is you're doing. This is NOT a sales call. This is a call to share your journey with people you care about. My calls take 12 minutes total.

What Should You Include In This Call?

1. Your Vision - what picture do you see?

2. Your Mission - how are you going to get to that vision?

3. Teach - why real estate is a great investment

4. Proof of Concept - Show them that you know what you're doing. Show the numbers. Cast vision for something they can be a part of.

5. END YOUR CALL - Remember: this is educational. Questions are saved for the follow up.

Follow Up

1. That week, follow up with EVERY SINGLE PERSON on the call

2. You are NOT asking them for money. You are asking how you did as a presenter. Let them teach you what content to add or take out.

3. Let them tell on themselves - halfway through their convo, they will tell you if they want to be involved or not.

4. If you have someone who is interested, work on terms that work for both of you, and get your attorney on a call. Let the lender speak directly to the attorney. Also have your lender consult with their CPA/Tax Strategist

5. Sign whatever documentation is needed, and get them to wire the funds

HAPPY INVESTING EVERYONE



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