Best Ways to Find Private Lenders
By Kate Beswick
Whether you’re on the cusp of a great real estate deal, or just have a hot idea that you need some backing on, private lenders can be a great way to go! Finding one or two private lenders can be easier than dealing with huge public corporations and can be less of a hassle than things such as government programs and funding. But finding someone who’s willing to invest in your idea can be tricky. We’ll show you how to do it with just a little advance planning and some smooth talking on your part!
When you’re first trying to find a private lender, of course you want to appeal to those who will be able to financially back whatever you are selling. This means that you need to target this group of people by sending them letters, cold calling, or sending out emails explaining what you are doing. In order to set your letter apart from others, keep it short. If you can explain your idea in less than 100 words, that’s terrific. But not very realistic. A better idea is to send out short emails or postcards giving a very brief overview of your idea, or your investment opportunity, and invite them to a seminar.
Preparing a presentation that you can present to many private lenders at one time can save you a lot of headache and hassle. Seminars can also make you appear more professional, and allow you to give an in-depth explanation of what your investment is. Seminars are not only great ways to find a few to several interested private lenders, but they’re also a great networking tool as well!
Networking is one of the most important things that you can do when you are trying to find private lenders. Be sure to talk to as many people as you can about your investment opportunity, and encourage them to spread the word. The more people that know about your opportunity gives you a better chance that the information will land in the right hands.
Some people find networking difficult simply because they feel as though there’s a lot of pressure. Because networking can happen anywhere, from the office elevator to your kid’s baseball game, it’s important to be prepared and know what you’re going to say. People don’t want to stick around to listen when you have to fumble for paperwork or can’t find the right words to convey what you mean. Have a short, one-minute speech prepared in your head that you can ramble off when you find an opportunity. This will make you appear smoother, more professional, and that you have a thorough understanding of the investment opportunity.
Networking and using word-of-mouth is really the best way to find a private lender. Things such as networking groups can assist you in doing this. These are organized groups that allow interested parties to come and meet with each other about what’s new in investing and in the field of opportunity. Knowing what you are going to say to potential private lenders, and being able to show them why you’re opportunity is also going to be theirs is key to finding one that will be able to help you!
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Joe Jurek CPA