4 Steps to Harvesting Private Money for Your Deals
Posted by Patrick_Riddle
Filed under Private Money Articles
Step 1 – Till the Soil
There are two things that every person that you know and every person you come in contact with should know . . . you are a real estate investor and you have investment opportunities available.
But that’s it at this stage in the process. You’re not explaining the details of your investment program, how the investment is secured, what rate you are paying, how it’s all structured, etc.
Your job when “tilling the soil” is to simply pique interest . . . with anyone and everyone. And you do this by using the 30 second commercial.
If you want to know who the best prospects are for getting private money, check out the article, 4 Types of People Most Likely to Lend You Private Money.
Private Money Getting Tip: Do not disqualify anyone as a potential private money lender. That’s one of the most costly mistakes you can make when getting started. You don’t care if someone has the wherewithal to invest or if they’re currently interested in becoming a private lender.
Your job in this step is to get the word out about who you are, what you do, and how others can profit from it!
OK . . . now that interest has been piqued and people want to know more, go for the formal appointment.
Step 2 – Plant Seeds
When you have a formal sit down appointment with a private money prospect and they leave the appointment with a FULL understanding for exactly how your program works and where they fit in the process, you have successful planted a seed. Nice work!
You want to continuously set appointments for practice, you want them for feedback, and want one more person out in the world to know the ins and outs of your program. If someone you meet with never invests with you in a million years, that’s fine! Who knows who they’ll tell about your investment program. When the topic of real estate investing comes up, chances are, they’ll want to contribute to the conversation. That’s when the word about your investment opportunities starts to spread.
If you use the free private lender PowerPoint presenatation that we provide, you will find out a ton of good information from your prospects about their needs and goals. There are specific questions built into the presentation so that you will know exactly how to match the right prospect with the right deal going forward.
From here, you want to . . .
Step 3 – Nourish Your Field
You’ve probably heard before that . . . The Fortune is in the Follow Up!
Well, that’s the whole truth and nothin’ but the truth when getting private money. You want to create a list of people that you’ve planted a seed with (meaning you’ve formally presented to them and they understand your investment program), so that every time you have a deal that needs funding, you can just go down the list calling every private lender prospect that could be a match.
And you follow up with these prospects until they “buy or die.” Until they tell you to get lost and quit calling them or until they write you a check to fund a deal. The more contacts that you have with each individual, the more you build trust, credibility, and your chances that they’ll become a private lender.
You’re nourishing your field by following up continually and setting yourself up for a copious harvest!
Step 4 – Harvest the Crop
You make the call saying, “Hey Bill, thought of you when another great investment opportunity came up and . . . not sure if it would be right for you but thought I would at least call and tell you about it . . . you see, we’ve got a great opportunity for the right person. It’s not going to last long though because I’m going to have a private lender commited to funding it by Friday. Is this something you might be interested in?”
And low and behold, the private lender prospect says, “YES.” You’ve successfully tilled the soil, planted the seed, and nourished your field until harvest.
Now, get back out there and start all over again . . . you’re on your way to having private lender beating down your door! Keep up the good work!

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