Thanks for the insights. Well said …

Mike,

Don’t let it get you down man. Overcoming objection is difficult sometime but realize, you will get what you want in life only to the degree that you are willing to face rejection and persist on in spite of it.

The best thing to do when in that situation is to admit that you don’t know everything and that your newer to the game.

If a question is asked that you don’t know, simply say, “Great question … glad you asked. I’m a little newer to this but my mentor has been doing it for a long time. Let me get back to you if that’s alright.”

Also, I think the best strategy when spreading the word about your investment program is to use the 30 second commercial … not a prepared prospectus.

Dave,

You’re right .. the money is out there!

Last weekend, when driving over the bridge to Isle of Palms, there were around 50 boats that I could see in the intercoastal waterway. People have money to spend … or invest for that matter. It’s just a matter of what’s important to them.

Now it’s time to educate people on why investing with you is important and is a great decision.

~ Patrick Riddle

And Mr Black with Genesis Integrity Group, you must check out Patrick’s website: http://www.mustknowinvesting.com
-Dave
Clinicians Holdings, LLC

I think a lot of new would be facilitator/investor of RE deals look around and see what appears to be “good” deals. However, appearences can be deceptive. I have a LOT of brokers, agents AND hound dog finders that send me prospective “good” RE deals on a “Daily” basis. But; MOST of these have problems once they are researched further.

My current path is finding and investing in good “Multi-units”. I’m targeting 100-150 unit complexes throughout the southeast. I’ve always found it more difficult to turn a “potential” deal into a GOOD deal; than it actually is to find the money to actually purchase a piece of property.

I had a mentor tell me one time: “Find the deals and the “Money” will find you!”

My nickname, “Ferret” was given to me by one of the leading apartment investors in the country because of my ability to “ferret out” a real good deal from what appears to be a bad investment.

Simply put, I’ve developed a niche where I can take a property that has been passed over by “large” investors and not even considered by “small” investors, then find enough money through negotiations to make it attractive for a “crossover” investor.

So my advice is: “Find or Create a good deal by negotiating with the seller, bank, etc; then go to the local RE club and offer it up.”

If you lack experience and credibility, that’s ok … here’s a couple suggestions:

1) Fall back on us as your mentors and utilize our experience/credibility.

Say, “I newer to all of this but luckily, I have mentors who have been doing this for many years and have recruited millions in cash from people just like you and me to fund deals all across the country. I don’t like going the trial and error route so that’s why I have experienced investors who know exactly how to do this sort of thing on my team. I haven’t created any of what I’ve presented to you … I’m just following a proven system that works.”

2) Let them know it’s not about YOU … it’s about the deal.

The deal is what secures their investment. That’s what they’re lending against. Let them know that it’s more about the great undervalued deal that they are very safely lending on.

As far as terms to recommend, Trevor and I both typically offer between 6 and 10% annualized rates of return. We much prefer longer term money as well. Figure out what works for your deal and ask for what you want. If you want a loan for $200K for 5 years at 8%, present that to your prospects as the opportunity.

It’s definitely a possibility to apprentice with successful investors. That’s really what coaching programs are all about. And, there are a ton of different programs out there that may be right for you. I’ve been in various coaching programs ever since I got started and still am … constant and never ending improvement … that’s my motto.

Pat,

We do have a bonus module for all our course owners on How to Build a Buyer’s List of 500 in Less than 30 Days.

Here’s two of the best places I have used to build mine:

1) Your local real estate investing club

2) Foreclosure auctions (awesome place to find cash buyers!!)

Navarro,

Thanks man!!

We appreciate it … let us know how we can help … go get ‘em!

- Patrick Riddle

I must, beyond the shadow of a doupt let you know how sincerely grateful I am for your extreme kindness and willingness to share with young investors how you approach and recruit private lenders. This to me is priceless. I was a bit timid and rather shy about talking to prospective lenders because I was not sure of what to say to them. Now that you have opened my mind by paving the way for me I am off and running starting with my dad and his wife, then my uncle’s wife and all the people I know. I just can’t thank you enough, continued success and God’s richest blessings. Peace

Navarro
Royal Palm Beach FL

Thank you both for the very valuable information, I truly appreciate it! These are very good, ice breaking phrases that put both the investor and the private lender at ease.

Good question… but it may be the wrong question.

Rather than looking for private lenders… start asking “How can I create private lenders?”.

Another reader just emailed in saying something to the effect of (not exact words… just a paraphrase), “Why can’t you send me a list of lenders? Knowing what to say is the easy part”.

Same thing… stop looking for private lenders and start creating them.

Here’s the email I sent back to that reader… I think it might help a bit to answer your question too:

———–

Although sending out a list of private lenders might sound
like it’s the solution… I’ll 100% say to you that it’s not.

If Patrick and I were to put together a big ol list of all of
our lenders and send it out to everyone that wouldn’t
help you or us reach your goals.

#1, this may sound a bit selfish… but we worked hard to
build trust w/ our lenders… and we don’t want to jeopardize
our trust and reputation by hooking them up w/ other investors
that we can’t personally verify and vouch form.

Also, every dollar my private lenders lend to another investor
is a dollar less I have available to buy properties.

#2, if we got a big ol’ list of investors/private lenders and
put it out there… they wouldn’t technically be private
lenders anymore because those types of people who
may be on a list as a “private lender” are likely savvy
lenders and would fall more into the hard money category.
Or, if we had a list of our lenders that we would connect
people w/ we’d have to act as a broker and take a broker
cut for our time and effort… again, no longer private $ for you.

Finding these people isn’t hard… you probably talked to
5 more more today… but you just didn’t say or realize to
say the right things. Private lenders are anyone and everyone
who has money, might have money in the future, or knows
someone who has money (virtually everyone). Most of them
don’t even know they are private lenders yet… but it’s up
to us investors to turn them into lenders by saying the
right things.

So, yes we could send out a big ol’ list of private lenders
who we know and who we’ve done business with (which
would be well over 100 just between Patrick and I)… but
we don’t want to be in the brokerage business and frankly
it would harm our own real estate businesses.

Too many people are looking for a “private lender list”
or for “private lenders”. Make the mindshift and start
creating private lenders… everyone is a potential private
lender. I just moved to a new town 5 months ago… met
w/ my dentist for the first time…. said the right things…
now he’s a private lender of mine and has committed
$500k in his funds for my deals.

Create lenders… it’s more effective and profitable than looking for them. When you look for them you’ll mainly find “institutional” private lenders, private lender brokers, or the more savvy lenders… which means you’ll likely be paying points, fees, and higher rates (not the kind of private $ I like… nor should you).

– Trevor