4 Types of People Most Likely to Lend You Private Money

1. People That Know and Trust You

Credibility that you’ve cultivated through personal relationships is the best place to start when seeking private investors for your real estate deals.

Friends, family, neighbors, work colleagues, people from church, or really anyone that you have built a long term relationship with are good potential prospects. These are the people that regardless of whether or not they have interest or have available funds to invest will be glad to hear you out and give you constructive feedback.

And don’t be too quick to judge someone’s ability to invest with you. That will cost you big if you do. Set up the appointment and present your investment program. Even if they never invest with you, you got some practice presenting to them, you planted another seed, and they may refer someone to you that does have the interest and available funds to get started in your program today.

2. People That Know a Good Deal When They See One

OK, who would fall into this category? . . . anyone that is a real estate related industry will most likely know a good deal when they see one. Seek to network with real estate agents, mortgage brokers, appraisers, attorneys, accountants, home inspectors, bankers, title researchers, other real estate investors, etc.

If you contract a killer deal and show someone that knows what they’re looking at, it’s only a matter of time before you have it financed.

Practice your 30 second commercial, set up the formal appointment, and present your private lending program.

3. People That Know People That Have Invested With You

Yes, I’m talking about referrals. These people have already been presold by someone else that has experience investing with you. Nothing more powerful than that!

Once you sign up a couple private lenders on your team, ask them who they know that may be interested in the program. You can also offer a referral fee or “marketing” fee to get people excited about referring others.

4) People that Are Self Employed or Own businesses

Many of my private lenders are in commission based jobs where they get paid based on results or own businesses themselves.

These people are not afraid to take risks, don’t rely on other people to do everything for them (like making investment decisions), and are actively on the look out for that next opportunity.

And best of all, these are typically the kind of people that are at all the networking events around town. People that know that the harder they work, the bigger network they create, the more oppotunities that they take advantage of . . . the faster they are going to achieve their dreams and be where they want to be.