44 Possible Private Lenders

is that youHey guys, do you struggle with assembling that list of potential private lenders from the “warm market” around you?

Rest assured, I’ve been there. We all have. But I’m here to help. 🙂

The fact is, when you sit down to try and put together your first list of possible private lender prospects, a lot of times you find yourself hit with total brain lock. I’ve seen it time and time again.

We’re talking about sorting through the spectrum of people you already know who might have “mattress money” of some sort that they could perhaps leverage as private funds for your REI deals…  

But it’s not like you don’t know anyone, right?!  It’s just getting that juicy list of names to rise to the surface of your brain — well it can be tough!

Here, let’s have a little brainstorming session together…

Right now I’m going to help your brain fog a bit by sharing a BIG list with you that should help you immensely in brainstorming your own warm list of potential private lender prospects. It’s a handy dandy chart one of our members, Shae bynes, put together for us, and it’s awesome.

What to do: Use this list of 44 types of people as a brainstorming aid for possible private lenders. Do it now. And I suggest starting with the “low hanging fruit” – aka “warmest prospects.” These are people who you already have a personal relationship with. They’re often easier to convert into lending you funds than someone you don’t know.

2014-07-07-CHART

Don’t make this embarrassing (all too common) mistake…

Okay, now that you’ve got an idea (or 44 of them, really) of whom to approach, I’d like to offer a word of caution

disqualifiedOne of the biggest mistakes I see people making all the time is disqualifying people based on your perception of their interest or ability to invest.

Hear me now: Don’t disqualify any prospects!

Why? Because oftentimes, you’ll discover some very unlikely people, who you may have mistakenly assumed had zero available cash, actually have access to more than you think, in places you’d never have imagined.

True Story: One of our faculty members and long-time good friend, Susan Lassiter-Lyons, swore up and down that her uncle had no funds and would not be interested in the least in her crazy real estate endeavors. But turns out, not only did he actually have a ton of money, he ended up investing LOTS of it in her real estate deals once he realized there was something better to do with it than let it sit in his mattress (quite literally).

That’s a perfect example of how preconceived notions of someone can be so wrong – in a good way. Susan nearly lost out on hundreds of thousands of dollars in capital from her uncle. Seriously, this happens all the time! Newer investors assuming no one in their little world has access to any significant capital, and/or that they’d never be interested in loaning money to “little old them” for their deals.

Stop doing this, people! No pre-judging!

3 more important things to bear in mind…

(1)  If nothing else, practice makes perfect. Approaching as many prospects as possible gives you chance to run through your private lender presentation — and you can always use more practice with that, right?  The more practice you have, the better you’ll be at presenting and walking people through the process.  If you haven’t done so already, feel free to swipe and deploy my own personal Private Money PowerPoint Presentation and customize it to fit your business. You’re welcome!

(2) Think ahead. Even if someone you make your presentation for doesn’t have money today, maybe a year from now or 5 years down the road the will… and they may very well come back to you throwing money at ya. Wouldn’t that be nice?

(3) Word of mouth is huge in our industry. You may have done your presentation for someone who didn’t invest with you, but perhaps they know someone who is interested and plays matchmaker with the two of you. The more people you meet with that understand what you’re doing from your awesome presentation, the more likely you are to get referrals.

Now get to it!

Now that you are armed with this helpful info, I am challenging you to leverage this list to write specific names associated with all of the categories from the chart above to create your own personal list of people.

Then, go down the list one name at a time and use my 3-step private money getting process (step 2 is to start making appointments to give your private money presentation… even if only to practice your presentation and get your name out there that you’re in the REI game).

You may even want to say to some of them, “I just want to present this to you so I can practice and get more comfortable presenting.” Then you may not feel so awkward or threatened by rejection or whatever else they may be thinking.

Also, if you’d like to add a few more prospects to your list of people who are already private lenders in your local community, CHECK THIS OUT 🙂

It’s an old (but little known) method that you can implement from the comfort of your home.

Patrick RiddleWhatcha think?

Do you have a similar story to Susan’s and you nearly lost out on loads of investing capital because you incorrectly judged someone who actually had money to invest? Or maybe you thought of another prospect category to add to our list? We wanna hear about all of that in the comments section below.

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7 Comments

  1. I will commit to the 1-2-3 step process. Great information and easy to remember. Thanks Patrick.

    • Glad you enjoyed Larry!

  2. Thank you for this suggestion. Now to act on it…

    • Hey James, you may want to check out the link above where it says “3-step private money getting process”… that’s a video that will help you act on what you learned here.

      – Patrick

  3. Hey there Patrick, I recently went through one of your courses and thoroughly enjoyed it. I would recommend it to anyone. Tons of info!

    • Hey Pat, Glad you enjoyed it! Let us know if we can help you with anything along the way!

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