Are You Making These Common Private Money Getting Mistakes?

Hopefully, you either haven’t yet made or never will make these private money getting mistakes.

One of the best ways to learn something new, is to learn what NOT to do. In this instance, mistakes to avoid.

Learn from these common private money getting mistakes so that you get private money for your deals safer, easier, and faster.

3 Private Money Getting Mistakes You Must Avoid

1) Advertising Directly for Investors Without Registering with the SEC

Here’s an example of how NOT to advertise to get private money:

Investors Wanted!

10% Returns Backed By Real Estate

Guaranteed!

Contact us at xxx-xxxx

If you were to run an ad like this in your local newspaper, that would be considered a general solicitation. And without registering with the SEC, that could land you in some big time trouble.

Here are a couple tips …

Never, and I mean never, say that an investment is guaranteed. That could get you in major hot water with the SEC … not where you want to be. Like Benjamin Franklin said, “Nothing is certain but death and taxes.”

I recommend that your primary strategy for finding private money leads is to network at REIA meetings, chamber of commerce, rotary, small business associations, BNI, and other similar organizations.

But, for those of you who still want to advertise, here’s how to structure your ad so that you stay SEC compliant.

Position your ad as if you’re teaching how to become a private lender rather than directly offering an investment. For instance …

Learn How to Make Great Returns

Backed by Real Estate

Contact us at xxx-xxxx

That would not be considered a general solicitation.

2) Presenting a Specific Deal During the First Appointment

The private money getting process we teach our Private Money Blueprint students entails getting a prospect into a formal appointment and presenting your private lender PowerPoint presentation.

During the presentation, rather than presenting a specific deal, go over general terms for your private lending program.

You see, it’s much easier for someone to object to a characteristic of a specific deal than to an ongoing investment program.

If you present a deal at this point, your prospect may not have the required funds, may not like the property, may not be able to meet the time frame needed to fund the deal.

However, once you sell someone on your investment program and you find out exactly what range of funds they have, time frame available, expectations from a good investment opportunity, etc., you can transition to passing specific deals by him or her; deals that match the information you already elicited.

3) Telling Instead of Selling

To get private money, it’s not about you telling a prospect about you, about your company, about your real estate investing strategy, about your private lending program.

True, that’s part of it. But only part.

You’re selling an idea; an idea of how to make a good return on investment dollars. And the best way to sell that idea, believe it or not, is by asking good questions; the type of questions that elicit information about your prospect’s pains and goals.

Here are some good examples of questions to ask when borrowing private money.

Making mistakes in the private money game can cost you dearly. By steering clear of these 3 common mistakes, you’ll be on your way to getting private money safer, easier, and faster …

Happy Private Money Getting!

If you guys and gals have any questions, put ‘em in the comment area.

- Patrick & Trevor