The Secret to
Getting Deals Financed in Today's Market
by
Patrick Riddle of Must Know
Investing
 Are you having trouble getting
the cash you need for your real estate deals? Have you
ever lost a great deal because you didn't have funds 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.
"Patrick,
what do you mean by private
money?"
Private
money is investment capital from an individual. There is
a limitless supply of private money lenders to finance
your deals. All you have to do is educate people about
your investment program and help them understand why
becoming a private lender is a good alternative to
traditional investments like stocks, bonds, mutual funds,
and CDs.
7 "Must
Know" Tips to Getting Private Money for Your
Deals
1) It's All
About Personal Relationships
Investors
approach me all the time and say something like,
"I've got this great deal under contract, and I need
some private money to get it financed. What would
your private investors charge to finance my
deal?"
What
people don't seem to understand is that getting
private money is all about personal relationships . .
. relationships that YOU build with your private
money prospects.
2)
3 Types of People Most Likely to Invest with
You
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've 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, etc.
The
last type of people most likely to invest with you is
the best source of all . . . people that know someone
who has invested in a property of yours. Or, in other
words, referrals! Once you get your private investor
base established, ask them who they know that would
also like to make a good solid rate of return backed
by real estate.
3)
Plant Seeds Voraciously
By
"plant seeds," I mean "get the word out about your
investment program." You can plant a seed by telling
someone about it, handing someone a business card
with details, directing traffic to a website, or any
other strategy to introduce the idea that you finance
deals using funds from private
investors.
I
found that when getting started with private money,
it took between four to six months on average to get
someone to invest with me after presenting my
investment program to them. Sooooooo, get started
planting seeds
immediately!
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