Real estate is a lucrative business, but it can also be an expensive business.
Sometimes, you will want to find private lenders to help finance your real estate deals. Offer them an investment opportunity, borrow their money and pay them back with interest.
This can be an effective way to build your real estate business, provided that you know the best places to find these private lenders.
FRIENDS, FAMILY AND COWORKERS
A lot of people don’t like the idea of approaching friends, family and coworkers when financing their business ventures.
But if they’re wealthy or they have money sitting in their retirement accounts that they can afford to invest, they will be open to hearing about good opportunities to invest their money.
Don’t think of it as asking for a favor. Instead, place the focus on what’s in it for them. Tell them you’re giving them the opportunity to work with you and secure a better ROI with real estate.
Next, you can network with people who are already involved in the real estate industry. Go to real estate investment clubs and let them know about your investment opportunities.
Also consider meeting up with title companies. These are the people closing real estate deals every week. They know who is buying the properties and who is funding them. If you build a relationship with title companies, they’ll give you the information of funding parties, because they hope you’ll use them to close that transaction.
Finally, there’s no reason you can’t use direct marketing to locate private lenders.
Contact a list broker, rent a list of people with money in a certain area and send out a letter or a postcard. On the direct mail piece, tell them that you can offer them an opportunity to make a better ROI with real estate and ask them to call you back.
You will build a list of interested investors, who you can then invite to a small group meeting.
Prepare a presentationabout how they can make money working with you, how your deals will be structured and how their money will be protected. Offer them food and talk to each one individually. You’ll build relationships and find new funding partners.
The MOBE Platinum Mastermind is where the most experienced mentors in investing and asset protection share their investment methods with fellow members. To learn more about the Platinum Mastermind, click HERE.