Access to private money is crucial to success in the real estate investing business. Once you have your money lined up, you can finance as many deals as you need with no limitations.
This means you must identify potential private money lenders and convince them to invest in your deals. Most real estate investors have no idea how to handle this.
This article covers how to approach potential private money investors and sell your ideas to them.
As soon as you identify potential people with money to invest, you then convince them to invest in your deals. The idea is to present your deals to them for funding whenever you find them.
A lot of real estate investors wait until they have deals to present before they can approach potential private money lenders. While this method is safer, it means the deals you find could go down the drain before you can get them funded. You also have to leave out a lot of good deals.
Also, if you are using a broker to help you find deals, they are unlikely to spend their time working for you unless they know you have the money to make the deals happen. A portfolio of potential private money investors will help you overcome this objection.
You are therefore in a better position if you can approach them before you get the deals.
This method is more aggressive but gets you better results.
Some prior preparation is necessary in order to convince potential private money investors:
1) Get a private money investors website
This is the first thing you must do. Even though you will talk to all your private money investors, you need them to learn about you as much as possible.
A good private money investor website will help break the ice for you and tell them your story before you talk to them. By the time you talk to them, you will be done with basics and discuss deals you may have for funding.
You can also present the deals you have on such a website. We recommend a good website at the end of this article.
2) Draft a convincing sales letter
Assuming you have identified potential private money investors the next step is to contact them. This part can be tricky.
When you send them a letter, it must provoke their interest with a strong call to action without being aggressive.
For this reason, you need to spend some time drafting a good sales letter. Such a letter can be only one to two pages but needs to be provoking without being aggressive.
Always provide your website address, as well as your full contact information in your sales letter. You can also give them a follow-up call after a few days. They will probably already know who you are if they received your letter.
3) Present your deals
The next step will be to present your deals for funding once you have them ready.
You have to present all the numbers and hopefully get yourself funded.
Successful real estate investors need to have a ready source of private money to finance their deals whenever they need to. A real estate website that targets private money lenders and convinces them to invest in your deals is therefore necessary for your business. Find out how a private money investor website can super charge your real estate investing business.
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