Easy Way To Approach Private Money Lenders For Real Estate Investing
In order to be successful in real estate investing business, it is necessary to have access to unlimited funds in the form of private money. Once you have private money, you can finance as many deals as you can find with little or no limitations.
You must therefore approach and convince private money lenders that they should invest in your real estate 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.
Once you have identified potential private money investors, the next step is to approach them and convince them that their money is safely invested in your deals. The idea is to present your deals to them for funding whenever you find them.
Lots of real estate investors first look for deals before they can approach potential private money lenders. Even though this is safe, you could lose the deals before you can get them funded. You might also have to leave out lots of good deals untouched.
If you use a broker to get your deals, they must know you have a source of funding before they spend their time looking for deals for you. They will be comfortable to work for you once they know you have the money.
You are therefore in a better position if you can approach them before you get the deals.
As much as this method might sound aggressive, it gets you better results.
It is important to be prepared to convince potential private money lenders:
1) Get a private money investors website
Start with this as the first thing you do. Although you will still talk to potential private money lenders, they need to learn as much about your business as possible.
A good private money investor website serves to tell your story for you and break the ice. 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 your website. We recommend a good website at the end of this article.
2) Draft a convincing sales letter
Next you need to contact potential private money lenders assuming you have already identified some. This is the trickiest part.
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. Usually a letter one to two pages should be enough.
In the sales letter you must offer your website address and full contact information to make it easy for them to contact you. You can also give them a follow-up call after a few days. Hopefully they will already know who you are if they received your sales letter.
3) Present your deals
Your next step will be to finance your deals as you present them.
If the numbers look appealing to them, you are 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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