I was fortunate to get investor and entrepreneur, Justin Lee, on the line recently to see what’s working in his biz in today’s market.
Here’s a little info on Justin:
- Full time real estate investor since 2003
- Made over $27,000 on his first deal
- Has invested in 3 major markets around the U.S. – Washington, DC, Bellingham, WA, and San Diego, CA
- Runs and operates several different real estate and marketing companies
- Founder of SaveMeFromForeclosure.com
A year ago, he and his family (wife and two little ones) decided to pick up and move to San Diego.
Imagine being totally in control of your life, being able to move wherever you want, when you want… like Justin.
In this “Insider Interview”, we dig in deep to show you the exact marketing strategies he uses to find great deals, how Justin gets and structures his private money loans, and much more.
This is actionable training that you can take and immediately implement in your biz and life.
… thanks for joining us for this month’s “Insider Interview”.
Also, we’re on the lookout for more real world investors who are kicking butt in today’s market and are using private money to make it happen.
If that’s you, shoot an email in to our support at support [at] privatemoneyblueprint [dot] com. We’d love for you to be our next “Insider Interview”.
P.S. – Around the 24 min mark, Justin shares an awesome negotiating technique to get seller financing. Make sure you check that out.
Basically, you find a great deal, get the property under contract, and assign the contract to a buyer.
… and often times you can walk away with $3k, $5K or even more (in the video below I show you a check for $6,700 from one of my more recent wholesale deals).
And you can do this…
- Without cash
- Without good credit
- Without ever owning the property
- With virtually no risk
Pretty cool, ehhh?
Well, having the right clauses built into your contract can make or break a deal.
So, I decided to shoot a quick video and outline some clauses that you want to make sure you have in your contract when wholesaling real estate.
If you’re new to real estate investing and don’t have any contracts, I have a great resource for ya… more on that in a min.
Check out the video below now…
As I mentioned at the end of the video, we came across a great resource that you may want to check out…
It’s the best darn software I’ve seen for auto-filling your contracts… and for right now, you can grab it for free. Plus you get 9 contracts with it – a purchase and sale agreement to use when buying and one for selling, an option agreement to use when buying and one for selling, an assignment contract, and more.
My favorite thing about it…
I can even upload MY contracts into it and auto-fill ‘em, and either email or print ‘em out. A great time saver!
Anyway, thought you’d enjoy these wholesaling clauses and free tools.
P.S. – Got something on your mind? A question. A thought. A tip. Leave it in the comment area before you go.
A great way to make quick cash investing in real estate is wholesaling.
Now, this isn’t private money related like most of our content… but this is valuable info for any real estate investor.
Imagine being able to create $3K, $5K or even more simply by finding a great deal and referring that deal over to another investor.
In the video below, I show you a check I just picked up last week on my most recent wholesale deal. You’ll learn 5 pretty simple strategies (this isn’t rocket science) to build your wholesale buyer’s list… and get a free form to walk you through the process.
So, click below to learn how to wholesale deals for quick cash…
Got a question, comment, tip?
Toss it in the comment area before you go.
… and Happy Investing!
P-Rid here to deliver the 3rd and final Part, The Secret Sauce to Get to “YES!”, in the Private Money Millions Series.
Have you been spreading the word about your private money lending program, presenting great deals to your prospects, following up with them… AND still NO private money?
If so, you’re probably just missing one of the essential ingredients to the private money getting recipe …
I call it, “The Secret Sauce.”
How does a private money prospect go from being on the fence, from giving you another “no thanks” to enthusiastically saying, “YES, I want to fund your deal!”?
Do you think it’s … something you say, something you do?
What is the Secret Sauce to Get to “YES!”?
Here’s a clue from renowned persuasion expert, Robert Cialdini …
“Human beings have been hard-wired to want what is going away. And far more people are motivated by the thought of potential loss than potential gain.”
- Influence: The psychology of Persuasion by Robert Cialdini
So, in other words, people assign greater value to opportunities that are less available. When something becomes scarce, there’s an inner urge that compels people to action.
That’s the principle of scarcity in action; that’s the secret sauce!
Has your private money getting recipe been missing this vital ingredient?
How to Add the Secret Sauce to Your Private Money Getting Recipe
Here are a few examples how to employ the principle of scarcity to get your private money prospects to “YES!”
“We’re only looking to bring in a few (probably less than 5) highly qualified private investors into our company.”
“We’ll have an investor lined up to fund this deal by next Monday. So, if you’re interested, you’ll definitely need to act fast.”
“I have another investor interested in this lending opportunity, but I thought of you, and wanted to give you the first shot at it.”
In the example’s above, you’ll find that two primary motivating factors are at work …
- Limited Number
- A Deadline
What other ways can you add in the secret sauce in your private money getting? What other areas of your real estate investing business can you sprinkle in this needed ingredient to get more “YESES!”?
Put your thoughts, ideas, questions, and comments below. We would love to hear from ya..
Well, hope you guys and gals have enjoyed the Private Money Millions series.
Adiós and Happy Private Money Getting!
Before we dive right in, answer these questions for me …
= > “Are you frustrated because you can’t get your hands on the cash you need for your real estate deals?”
= > “Are you scared to make an offer for fear that it will get accepted?”
= > “Have you ever lost a great deal because you didn’t have cash to close it?”
= > “Is a lack of financing killing your real estate investing dreams?”
If you answered “yes,” to any of the questions above, then private money may be THE solution for you.
To find out, let’s take a quick crash course in private money … aka Private Money 101.
What is private money?
Private money is cash from an individual that is lent to you, the real estate investor, rather than being invested traditionally through stocks, bonds, mutual funds. When you think about private money, think investment funds from an individual … any individual.
Is private money the same as hard money?
Far from it!
Hard money lenders finance deals for real estate investors as a business. They lend to investors based on the property, not necessarily based on the person. The hard money lender dictates the terms of the deal to you, the investor.
A typical hard money loan has high interest, points, and is short term. For instance, I purchased my second deal with a hard money loan. I was charged 15% interest, five points (or 5% of the loan balance), and had a term of six months to repay the loan in full.
Do you see why they call it “hard” money?
On the other hand, with private money, you dictate the terms of the loan to your private money lender. Based on the deal and your business model, you offer terms that suit your needs and provide a good return for your private lender. A typical private money loan could have 6% to 10% interest, no points, and a term that suits your exit strategy.
What type of properties can you buy with private money?
The primary niche for my real estate investing business is single family homes. But, single family homes are not the only type of property you can buy with private money.
Trevor only buys apartment buildings. He has been investing for several years now and has accumulated a nice portfolio. Each property cash flows well, is managed by a professional property management company, and is in or near his local market.
And how do you think he finances every one of his purchases?
You guessed it … Private Money!
Any great real estate investing deal can be financed with private money; it doesn’t matter if it is a house, condo, townhouse, apartment building, skyscraper, or beach front home.
Do you have to do lender luncheons to get private money?
One of the popular methods taught to get private money is to host a lender luncheon. You would be required to rent a facility, advertise to fill the room, and you would present your private lending program in front of the audience. While I believe this to be a good strategy for some, hosting a lender luncheon is not a viable strategy for most.
Why you might ask?
The number one fear in our country is public speaking. And you know what is number two … death! Most people would rather die that speak in front of an audience. Even if it was easy to get private money by hosting a lender luncheon, the majority of people would not do it.
So the question still remains, “Are lender luncheons required to get private money?”
Luckily for you, the answer is “no.”
I actually found that it is easier to get private money by presenting your investment program to prospects one on one. Plus, you don’t have to spend money to rent a room at a restaurant or hotel, pay for marketing costs, deal with the anxiety of presenting in front of an audience, etc. etc.
What types of people are the best private money prospects?
The first type is people who know and trust you. This could be a family member, long time friend, neighbor, someone from church or school . . . really anyone that you have built a long term relationship with could be a good source for private money.
The second is people who know a good deal when they see one. Anyone who works in a field related to the real estate industry could fit in this category. Examples would be real estate agents, mortgage brokers, bankers, appraisers, home inspectors, attorneys, accountants.
And yet another type most likely to lend to you is the best source of all . . . people who know someone who has invested with you. Or, in other words, referrals! Once you get your private lender base established, ask them who they know that would also like to make a good solid rate of return backed by real estate.
Would my local real estate investing association (REIA) be a good place to find private money?
Yes, it would!
REIA meetings are filled with people who have heard real estate investing is lucrative, want to make money doing it, but do not have the time, energy, motivation, or know how to do it themselves. That’s where your private lending program comes in …
You offer a hands off real estate investment with a good return. Your private lender gets to “invest” in real estate without having to deal with the hassles that come with owning property like repairs, managing contractors, dealing with tenants, and other general property management duties. All they have to do is stroke you a check.
People who attend REIA meetings are already sold on real estate investing, all you have to do is sell them on lending against one of your deals.
How do you convince someone to lend you private money?
That is coming from the wrong mindset. You’re not out to “convince” anyone to lend money to you. Your goal is to educate people about your investment opportunities. If someone is interested, great. If someone is not, next.
Class adjourned. That’s it for your crash course, Private Money 101.
If you have any questions, comments, or additional tips, throw ‘em in the comment area.
Happy Private Money Getting!
- Patrick & Trevor
by Tim Krulia – Private Money Blueprint CFO
As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s an article I found with a video that announces President Obama’s plan to spend $1.5 billion on a new housing aid program…
The MSNBC article has a video of President Obama’s Feb. 19 speech at a town hall in Henderson, Nevada. The event was really a campaign push for Dem. Senate Majority Leader Harry Reid who is behind in the polls for the pivotal Nevada 2010 senator race. Obama’s speech paid Reid lots of compliments for his work in Congress, talks at length about the economy, touches on health care, education, green energy and announces a $1.5 billion housing aid program.
Of course, the housing aid program is what I’m interested in researching.
$1.5 Billion In Housing Aid… What Does That Mean To Investors?
The MSNBC article doesn’t do a very good of a job detailing the $1.5 billion housing aid program so that’s why I also am highlighting the Business Week article (it does a little bit better anyway). It’s probably best to understand the A-Z for this news story by watching the MSNBC video and then reading the Business Week article.
The problem for me is that even after I did, I think I only understood about the A-K of what this program is doing, unfortunately. The news applies most directly to those who live or invest in real estate in California, Florida, Nevada, Arizona and Michigan (the leading indicator states). These are the states that are said to have been hit hardest by the housing bubble bursting. The idea is to target the worst of the worst areas and help them out first and foremost.
Okay, so after reading these couple of articles and watching the video a few times………umm, I’m still a little in the dark about exactly what they are going to do with the $1.5 billion. The best I can find in the info I’ve researched are two comments that stick out a bit, but they are mostly just clues… I think.
- In Obama’s speech he said, “…and that’s why we’re buying up vacant homes and converting then into affordable housing.”
- In the Business Week article Diana Farrell, deputy director of the White House National Economic Council, says “The aid is intended, in part, to test programs that reduce principal or extinguish second mortgages where borrowers owe more than their homes are worth.”
Is the government really going to start buying vacant homes?
Did Congress get together and decide, Ah Ha!!! Here’s how we make some $!! Let’s become real estate investors and start buying the cheapest houses out there! Yeah, yeah yeah! We can get the public’s buy in because we’ll say that we’re creating jobs for contractors to fix them up and boost realtors and loan officer’s production! Then we can sell the houses and earn BIG PROFITS!! Yippie!! LOL!
I doubt that’s what President Obama meant but what if that’s part of their plan a little bit? Could the US Government be your competition buying the short sale deal you’ve been working on right out from underneath ya? Again, I don’t think that’s the case, but dang if it doesn’t sound like it from the speech. I’m not serious exactly; just a little humor.
Diana Farrell, on the other hand, notes that the program will help folks that are upside down on their mortgages. Reading in between the lines I guess that by eliminating second mortgages or lowing mortgage balances in general will thus lower monthly payments. Lower payments on a mortgage will help some people avoid foreclosure.
That’s great if you have a job with an income that allows a borrower to make regular payments. Hello? The unemployment rate is still about 10%!! I guess I’m a bit skeptical about where this money is going right now because I can’t seem to understand exactly how the relief is getting handed out.
Housing Plan Questions…
Let’s start by asking the questions…. so who qualifies for this one and exactly what should one expect if they get approved?
Wouldn’t it would be great if there was one central location that anyone could contact, tell a specialist on the recovery act, stimulus stuff, tax incentives & credits, etc. what their situations are and then let the specialist look though all the cool recovery & stimulus stuff out there and in an instant, “poof” it’s in place for ya?
I guess if I had it my way, I’d just make the $1.5 billion available as private money that real estate investors could grab up at a really low interest rate (i.e. 1%)!
We’d be out there pulling down the funds and rejuvenating whole neighborhoods left and right! Then again, it’s kind of small potatoes. Why pay so much attention to this anyway I guess? There was something like 2.3 million houses that entered into some stage of foreclosure in 2008.
$1.5 billion is only the equivalent of 10,000 $150K homes anyway.
To sum it up… as real estate investors we should all have our pulse on not only the real estate market… but other factors that can affect our businesses such as new goverment regulations or bills like this one. I only see more and more of this type of action happening as elections in 2010 draw closer to sway public opinion that the voters are being “helped out” by the government… and this “help” could mean competition for real estate investors in the short sale market (short term competition), but it could also open up a whole new market for savvy investors that we don’t even know about yet.
Need funding for your real estate deals? Losing out on deals because you don’t have the financing? Well, we’re solving that with our first annual “Getting the Money” Bootcamp June 4,5, and 6th. At this event we’re bringing in true *underground investors*, our funding contacts, and funding experts from around the country who are actively closing deals in todays market using a variety of different methods.
Everything from advanced “private money getting” techniques, to hedge funding, to buying large apartment buildings with little to none of your own money (our underground investor teaching this topic has acquired 2000 units in Texas in the last 2 years using the funding strategies you’ll learn) and more.
Great timing for this video… just thought you’d enjoy it and it would make your day
… now that link above is real world inspiration from real people just like you. Take 5 minutes and check out and see what normal people are doing in this economy because they took on the challenge to be an entrepreneur… it’ll change your life (it did theirs).
Then… check out this free “Private Money Getting” Q&A (we just uploaded a new version of the video… this one is MUCH better)… there’s more real world investor case studies in there… and one tip in particular (a student asked a question on the call)… that will help you reduce the interest rates you pay to private lenders by 1-4%.
P.S. – The PMBP system price goes up by $300 on Wednesday at midnight… check it out before you miss out on the low price… and the bonuses.
When getting started with private money, what if one of your private money prospects asks you …
“Have you done this with other lenders? If so, could you give me a few names that I could contact?”
How would you respond to that? What would you say?
If you’re like most, you’d probably fumble on your words … stutter a little bit … and leave your prospect with a not-so-good feeling about you and your investment program …
BUT, have no fear … Patrick’s Here!
… lol … ok, maybe that was a little much … but really …
One of our students asked this question recently so I shot a quick video teaching you exactly what I’d say to handle the prospect’s true concern … their comfort level investing with you …
Click the video below to watch the video now!
My advice to you would be to study the script below so that you’ll be ready to fire when a prospect asks you this one …
<< Private Money Script for Squashing this Objection >>
“I’m newer to this but my mentor has been doing it for many years.
Often times when people ask that question, I’ve found that what they want is to feel comfortable about the investment … one thing that I want to make sure that you understand is that you’re investing in a property … a property that is significantly undervalued. So your security is the property itself.
And you will get a chance to make sure the deal provides you all the comfort needed for you to feel safe and secure. Does that make sense?”
Then, if he or she asked again to speak to some of your investors say …
“I’m in the process of qualifying several lenders at this time to get started with me. So far, I haven’t needed extra funds but I’m coming across so many good deals right now that it’s time to build the team to take advantage of this incredible buyer’s market.
You know, this opportunity is definitely not for everyone so I understand if it’s not for you.”
Let us know how we can help you guys out … put your thoughts, questions, and whatever else is on your mind in the comment area below …
- Patrick & Trevor
NOTE: Since March 2009… our students have reported back (this is only what they’ve reported back to us) over $4.75 million in private money “got” to close their real estate deals. If a few hundred thousand or million bucks to make offers would make a difference hop aboard the “PMBP train” while this buyers market is still here.
Several months ago, Tim sent me a message through Facebook. The subject line said, “Patrick Riddle’s Protege: Tim Bratz.”
Check it out …
That’s the kind of attitude I like to see! That’s the kind of attitude that begets success.
5 Reasons I Knew Tim Would Be Successful in Real Estate Investing and Getting Private Money
1) As soon as he learned that I lived in Charleston, he reached out and contacted me . . . showing initiative.
2) He quit his job to focus on real estate investing. Now, this isn’t something that I recommend to anyone BUT, Tim made an unwavering decision to become a real estate investor. It wasn’t simply a hope or wish. He went “All In” and as you’ll see in the video below . . . it’s paying off big time!
3) He recognized that he was at a stand still and that there was a missing ingredient. And that missing ingredient was having a mentor. As Tim said, “Someone who has been there and done that but also someone who I can associate with.”
4) “I’m willing to work for you free of charge.” Now, that clearly shows that Tim knows the value of having a mentor. He’s not one of the many out there that wants something for nothing. Hopefully, you aren’t either. That kind of mindset guarantees failure (and it’s all too prevalent in today’s world).
5) He also mentioned wanting to discuss his goals, being committed to becoming a real estate mogul and that he’ll do anything (ethical and moral) that it takes.
So, I decided to meet with Tim for a cup of coffee and check this kid out (he’s only 24! . . . which I like to see since I started in my early 20′s as well). And what do you know, he ended up being the real deal just like he said.
Shortly thereafter, he closed his first deal, joined the Private Money Blueprint Team, and has gotten private money commitments from multiple people. In other words, he hit the ground running and isn’t looking back.
Check out the video to learn more about his story . . . how he got his start, the frustrations and obstacles he encountered, closing his first deal, getting private money easily, and more.
If you want more great private money videos, subscribe to our youtube channel. Otherwise, you may miss out on a tip or technique that could mean the difference between struggling to finance a deal and having private money lenders beating down your door.
- Patrick & Trevor
Alrighty… one of our Platinum PMBP students shot us an email letting us know what he’s been doing the last couple weeks… and I had a big ol’ smiles on my face when I read what he’s done since implementing what we taught him.
His Private Money Results?
Well… check out the case study audio below for specifics… but I can tell you he secured 6 figures in less than 30 days after he worked the PMBP system (he says how he did it in the mp3 below).
The mp3 will open in a new window
To Sum It Up…
- $150,000 in private money within 30 days
- Has found a few very simple things that clicked with him that got him big results that other private money programs didn’t do for him
- He used our scripts and got his CPA to commit private money to him and his CPA will now refer his clients over to Patrick Egan as well.
- Patrick (Egan) is much more confident and comfortable getting private money now
- Patrick (Egan) will now be able to fund his multi-family deals more easily than ever before
Congrats Patrick! We’re proud of ya and we’re here with you 100% of the way!