Private Bad Credit Loans » Philadelphia

Private Lending – How to Do Group Presentations to Raise Private Money

davidguide — Fri, 30 Oct 2009 17:55:50 +0000

I recently wrote an article about the the best ways to raise private money for real estate Investors where I laid out the top 4 ways to raise private money to grow and develop your real estate investing business. One of the top 4 ways we use and teach to our students is to use group presentations.

A private lending group presentation involves getting 5 to 20 people into a room and doing a presentation where you lay out the details and benefits of your private lending program. This may not be for everyone depending on your comfort level of talking in front of groups, but the advantages of group meetings are very powerful. When people start to ask questions and tell positive stories, a certain level of group think starts to take effect and can be very powerful on the attendees.

We teach our students to focus on the preplanning and marketing, presentation materials and post-meeting follow up as the key to conducting a successful meeting and getting people to invest in your business.

Preplanning and Marketing – We put preplanning and marketing together because they must be done together. Make sure you have a room reserved that can fit 20 or more people comfortably. It can be a hotel conference room but they tend to be expensive. Other options might include a local library, church or civic groups that allow people to use their meeting rooms. Once you have the meeting room arrangements finalized you can then create your marketing piece with the exact address and time of the meeting.

Now you need to get people to come your meeting. And not just anyone – you need potential investors with extra cash to invest. A couple ways to promote your meeting might include posting flyers in 55%2B communities with retires who might have extra cash to invest. You can also rent a list of local people with high incomes and bank CDs and mail them a letter or post card inviting them to the meeting. You can also place small ads in your local newspaper promoting an “information only” meeting about private lending and real estate investing. Better yet do all of these to help fill the room.

Presentation Materials – In order for the meeting to be successful you need to have a well prepared PowerPoint or presentation handout. It needs to be well organized and show your professionalism. This is no time to “wing it”. Your presentation needs to come off well done and organized where you lay your business plan and why it makes sense for them to consider investing with you. Again this should be “information only” and do not make specific offers to invest or discuss actual projects to invest in at this meeting. Actual offers are done in the follow up to the meeting.

Post Meeting Follow Up – As part of the meeting be sure to gather every ones contact information so you can contact them after the meeting. I recommend a letter 2 or 3 days later thanking them and asking them to contact you if they have further questions. Keep in mind that most will not invest, but if 1 or 2 do become investors from each meeting it is a highly successful meeting.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit.

How to Get Unlimited Access to Funding Using a Private Lending Credibility Kit

davidguide — Thu, 15 Oct 2009 13:00:50 +0000

photo credit: liberEvery real estate investor knows that in order to make money you have to spend money. If you are starting out in real estate, this is not always an easy venture if you do not have the means to fund real estate ventures using your own money.

With the uncertain economic climate, a conventional lending institution can be a difficult road that is laden with endless red tape while leaving you at the mercy of the loan decision makers.

The answer to the dilemma is private lending and if you play your cards right, you can have unlimited access to funds for your real estate ventures for a long time to come, without ever filling out a loan application or enduring credit and employment verification.

Use a Private Lending Credibility Kit

Always use a private lending credibility kit to attract lenders. Although this seems like a given, you would be surprised at the number of real estate investors who skip this step. By simply using a kit, you are already going to be ahead of the game and when it comes to standing out among your competitors.

Organize Your Credibility Kit

A well organized kit stands out. Instead of just picking up the phone and hoping to strike a deal with a private lender, take that time to organize your kit. Not only will this demonstrate professionalism, it will provide the private lender with easy access to your information and accomplishments.

In addition, the private lender will have something in hand to refer back to repeatedly when making a decision, as opposed to a phone call where they can hang up and forget about you the next minute. A well organized credibility kit will also encourage the private lender to review it because they can easily find the information they need.

Make Your Credibility Kit Stand Out

Uniqueness and Ingenuity – Every section of your kit should speak to your uniqueness and ingenuity, offering benefits that no other competitor has yet to offer. The unique benefits should be mentioned in your cover letter, your bio, your marketing section, and your references.

Market, Market, and then Market Again

Market Yourself – Use the information in the private lending credibility kit to market yourself.

Distribute – Distribute your private lending credibility kit to potential private lenders and remember that massive action produces massive results.

Display – Display your private lending kit on your website and during presentations when you are pitching your real estate ventures.

Talk – Talk to everyone and anyone you can who would potentially be interested in your real estate venture. Talk about your credibility kit and everything you have to offer. Word-of-mouth will eventually get private lenders coming to you and requesting to review your information.

Network – Attend real estate conferences and exhibitions armed with your private lending credibility kit and get it in front of as many eyes as you can. If it is well organized with strong marketing materials, private lenders will be knocking at your door and soon you will have all of the funding that you need to become successful in real estate.

I invite you to learn more about Private Lending Credibility Kits and get FREE instant access to a 60 minute audio and 20-page eBook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by going to http://www.realestatewealthtoday.com/PLS-Vol1-Sales.html

How Private Loan Lenders Can Jump Start Your Real Estate Investing Business

davidguide — Wed, 07 Oct 2009 11:40:27 +0000

A Private loan lender is someone who, just like you and me, works and has saved their money to invest. In the past they may have invested in the stock market or bonds. With today’s economic uncertainty the stock market is such a risky venture it makes real estate investing look like a stable market and has investors flocking looking for better alternatives.

Everybody across the country has seen the huge drop in real estate prices and anyone that has some money saved knows now is the time to purchase real estate when prices are low. So when searching for a private loan lender have some facts about the current real estate market in your area right at your fingertips so when you are face to face with a private loan lender you can help them see the golden opportunity in front of them.

The news never paints a truly clear picture of the real estate market. Only the people that day after day study the numbers of sales and new listings, pendings and off market properties will really understand what the current market in your area is. If you are not a real estate agent then becoming affiliated with one will greatly help your real estate investment business. These people can jump start your business ahead leaps and bounds and are one of the most important contacts to have in your Rolodex. Not only can they help you find a private money lender, they can help you find the property you will want to invest in.

Real estate agents also have the added power of being able to look up the current mortgage on a property most counties do not have this information available to the public. So when you set out looking for a private money lender finding sellers that owe nothing on their property is an excellent way to start. Lots of times they will be interested in helping you to purchase their property even if they have to carry some paper.

Although I have found most people who own their home outright want to carry the paperwork because of the low amount of risk (this is only if they are in first lien position and have a very good contract that protects them in case of foreclosure). Finding home owners that owe nothing on their home by yourself without the aid of an agent will be time consuming and your chances of success goes down greatly. Agents are an incredible valuable resource and using their contacts and information will make your business a lot more successful. They will also make finding and securing a private loan lender a lot easier.

I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by going to http://realestatewealthtoday.com/FREE-eBook.html.

Private Lending – Can I Use Radio Or Newspapers to Find Private Lenders?

davidguide — Tue, 13 Jan 2009 04:51:56 +0000

photo credit: evans.photo

One of the question I received a lot from coaching students is how can I advertise for private lenders in my real estate investing business. And more specifically, can I use radio or newspaper advertising to get people to come to a free seminar or to call me directly. However, there are real problems with this type of advertising.

A student recent told me he was about to post some newspaper adds and radio promos for a seminar to raise private money for my real estate investing business. He checked with my local SEC office and was told he could not do these types of promotion for private lenders. The SEC said that private mortgages are classified as “securities” and although they are exempt from a formal SEC filing they can not be presented as a “public offering”. They also told him they watch the newspapers and airwaves for such offerings and that he would definitely have heard from them if he had proceeded as planned. He then went to two local securities attorneys that confirmed this. One attorney suggested that he promote his seminars as strictly educational and maybe sell a product or book. But that he should not solicit directly at the seminar. After the seminar, he can develop a relationship with interested parties and work those leads as future potential lenders.

We teach students that marketing for private lenders is as much about what you “do” as well as what “NOT to do”. I strongly suggest that all marketing for private lenders be done on a low key person to person basis. We like doing local seminars for elderly groups or business associations where you provide some great information about the advantages of investing in real estate mortgages. At these meetings or seminars, you do NOT make an actual offer to invest but do encourage attendants to call if they would like to find out more or possible arrange a one-on-one meeting. It is at this second or possible the third or fourth, meeting you can see if the person would actually like to become private lender into your real estate investing business.

We do NOT recommend any type of big or public advertising such as internet sites, public classified sites like Craig List, newspapers or radio ads. All of these have numerous problems including the potential attention of your local or federal SEC departments. I can tell you from personal experience, you do not want these type calls.

Private Money Loans – Learn How to Borrow From Private Money Loans and an Easy to Use Checklist

davidguide — Tue, 13 Jan 2009 04:12:54 +0000

photo credit: *seanThe lending and borrowing process of private money loans for real estate is relatively straightforward and simple; however there are certain guidelines and expectations on both the part of the lender and the borrower that renders a private money loan transaction as successful or detrimental.

The needs of the borrower and the criteria of the private lender determine the nature of the lending and borrowing process of the private money loan. These two elements must mesh together into the scheme of things in addition to the routine necessary paperwork requirements.

The borrower of a private money loan should take a self-inventory to determine whether or not he/she meets the requirements for consideration by a private lender. In a typical private money loan transaction, there are considerations on the part of the borrower as well as the lender. It is a good idea to know the basic checklist before you get involved with a private money loan transaction. The borrowers checklist should include the following:

* The type of real estate property for which you are seeking a private money loan.
* Get an appraisal to determine the property value and loan-to-ratio percentage.
* Assess your current financial situation, credit history, and debt ratio.
* Determine whether or not you meet the general criteria of the private lender you have chosen.
* Hire a property surveyor.
* Get an environmental assessment if necessary.
* Obtain title and hazard insurance.
* For income producing property, access the cash flow statements.
* For income producing property, obtain the rental agreements
* Devise a plan to satisfy the short-term private money loan.
* Appoint an attorney who is qualified to handle your real estate transaction and oversee the correct filing of necessary paperwork.
* Make sure you have the private lender’s contact information for sending payments.

The lenders checklist includes the following:

* How the borrower intends to exit the short-term private money loan.
* All of the necessary documentation on the loan is signed and notarized.
* Make sure the original mortgage is in your hands.
* Make sure the property taxes are up-to-date.
* Make sure a there is a title insurance policy issued to you.
* The closing statement is received before the funds are issued.
* Make sure your money is disbursed into an escrow account.

The lending and borrowing process for a private money loan will vary according to the type of property to which you are seeking financing. The checklist for a commercial property will be different from the checklist for a residential property. In general, for all types of real estate, you will need the basic necessary paperwork of the Promissory Note, Mortgage, Certificate of Insurance, and Disclosure Statement. However, using creative financing may require additional forms of paperwork for different types of transactions.

I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html