your private money prospects · • private party lender prospects –county –state –1st...

Your Private Money

Prospects

People Who Know You

• Friends, family and acquaintances.

• Introductions that your friends, family

and acquaintances can make.

• This is the easiest group to target

with the lowest rates and most

flexible terms but investors never

want to start here!

The Good News

• Most ordinary people already

understand real estate and how people

make money with it.

• Real estate is the #3 industry in

creating billionaires.

The Issues

• Afraid to approach because it’s your

“secret identity.”

• Lack of experience.

• Fear of losing the money.

Mind Shift to Millions

• You are not borrowing money.

• You’re providing an opportunity to

make money!

Friends Script

• “I just came across a great real estate deal

and I have a partnership opportunity open.

Want to grab a [coffee/margarita/pedicure]

Friday to check it out?”

• “Great questions and I promise I’ll answer

them all Friday. What time can you

meet?”

People Who Already Invest in Real

Estate

• Where are the real estate investors?

– REIA

– LinkedIn

– Facebook

– MeetUp

Networking Script

• “Tell me a little bit more about the kinds of deals

you like to do.”

• “Have you ever thought about using some of

your profits to fund other people’s deals?

• From time to time I have [investors that are

looking for funding for their deals/deals I come

across like that]. Would it be OK if occasionally I

shared some of those deals with you?”

People Who Already Make Private

Money Loans for Real Estate

• Where are the private lenders?

– Public Records

– ListSource.com

Public Records

• brbpub.com and publicrecordsources.com

• Look by county for the Real Estate Recorder (liens, deeds, mortgages, etc).

• Search by documents (mortgage or deed) by date range.

• Search by name (put in first few letters of common last names).

Your List

• Get all types of lenders including…

– Banks, entities, trusts, individuals

• Get the following…

– Lender name (grantee), address, loan

amount, date, property address

• Focus on large, long-term, low-interest

loans.

Ninja Tips

• This strategy will also show you the

portfolio lenders that are active in the

area!

• Put in a competitor’s name to uncover

their lenders.

• $1MM Tip: Get your REIA members list

and run all those names to get lenders

loaning to investors.

ListSource.com

My Search Criteria

• Private Party Lender Prospects

– County

– State

– 1st Mortgages

– WITH Lender Name and Address

– Exclude Seller Carry Backs

– Last 12 Months

– Residential Properties

– Owner Occ Status = Absentee

– Corp Owned = No Preference

Debt Partner • A private money partner that invests in

your deal in exchange for a set return

each month.

• No profit participation in cash flow or

equity.

• A true private money “lender.”

• Rates as low as 4%!

Equity Partner • A private money partner that invests in

exchange for profit participation in cash

flow and/or equity.

• The most expensive private money partner

but the easiest to find.

• The splits are totally negotiable.

• Don’t be greedy if you have no “skin in

the game.”

Credit Partner • A partner on residential

deals only.

• Used to qualify for conventional loans.

• Credit partner is borrower and details of the arrangement are spelled out in a joint venture agreement.

What to Do Now • Start to identify your private money

prospects.

• Plan for lead flow from all three buckets:

– friends/family

– real estate investors

– private lenders