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