By Simon Marcharia
In order to be successful in real estate investing business, it is necessary to have access to unlimited funds in the form of private money. Once you have your money lined up, you can finance as many deals as you need with no limitations. This means you must identify potential private money lenders and convince them to invest in your deals. This is where most real estate investors get nervous. This article covers how to approach potential private money investors and sell your ideas to them.
Access to private money is crucial to success in the real estate investing business. Once you have your money lined up, you can finance as many deals as you need with no limitations.
It follows that you must approach potential private money lenders and convince them to lend you their money for your deals. This is where most real estate investors get nervous.
This article covers how to approach potential private money investors and sell your ideas to them.
Once you have some potential private money lenders narrowed down, you then convince them to invest their money in your deals. You will be presenting your deals to them for funding whenever you get them.
Lots of real estate investors first look for deals before they can approach potential private money investors. Even though this is safe, you could lose the deals before you can get them funded. You might also have to leave out lots of good deals untouched.
Also, if you are using a broker to help you find deals, they are unlikely to spend their time working for you unless they know you have the money to make the deals happen. Once they know you have private money lined out, they can start working for you.
For this reason, it is better to approach potential private money investors before you have deals that need financing. As much as this method might sound aggressive, it gets you better results.
It is important to be prepared to convince potential private money lenders:
1) Get a private money lenders website
This must be your first step. Even though you will talk to all your private money investors, you need them to learn about you as much as possible. A good private money investor website will help break the ice for you and tell them your story before you talk to them. By the time you talk to them, you will be done with basics and discuss deals you may have for funding. You can also present the deals you have on your website. A good website is recommended at the end of this article.
2) Draft a convincing sales letter
Next you need to contact potential private money lenders assuming you have already identified some. This part can be tricky. The letter you send them must be strong to provoke their interest without being aggressive, and a call to action that gets them to call you or sign up on your website. For this reason, you need to spend some time drafting a good sales letter. Such a letter can be only one to two pages but needs to be provoking without being aggressive. Always provide your website address, as well as your full contact information in your sales letter. If you are so inclined, you may also want to follow up with a phone call if you have their number. They will probably already know who you are if they received your letter.
3) Present your deals
Your next step will be to finance your deals as you present them.
You have to present all the numbers and hopefully get yourself funded.
Successful real estate investors need to have a ready source of private money to finance their deals whenever they need to. A real estate website that targets private money lenders and convinces them to invest in your deals is therefore necessary for your business. Find out how a private money investor website can super charge your real estate investing business.
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