How To Find Private Money Lenders For Your Deals

Posted by Tom Dunn

October 3, 2008

by Tom Dunn

Now that you have a preliminary understanding of private money lender loans, I want to give you the steps necessary to build yourself a powerful network of private money lenders, waiting to stuff money into your hands for your next real estate deal. That would be a very good thing, wouldn’t it?

Once you’ve written your business plan, your list of everyone you know for prospects, and your pitch letter (all of which I outlined in my previous article), you are almost ready to start contacting the people on your list. There’s only one more step to take first. Your elevator speech.

What’s an elevator speech, you ask? It’s exactly what it sounds like! Imagine you get on an elevator with a complete stranger and strike up a conversation. Immediately, he asks what you do. The elevator speech is your response, which should sound unrehearsed, but actually be highly planned and polished.

Don’t forget, this is referring to your investing business and private money, not your 9-5 job, as exciting as that may be. I’ll give you one example of an elevator speech, and you’ll see what I mean: “I buy, sell, and rent single family homes, and to finance those deals I use a tight-knit group of select private lenders, who enjoy returns of twelve-fifteen percent. I have room for one or two more lenders, and if you want, I could share the details with you.”

You have to admit, that’s pretty powerful! Sit yourself down and, referring back to the business plan and pitch letter you wrote earlier, write your own elevator speech. Polish it until it sparkles. It only needs to be 2-5 sentences, and then you can memorize it so your delivery will sound unrehearsed and natural.

Once you have all of this writing done, it’s time to start contacting people. Using your prospect list, and the contact information you gathered earlier, send a letter or email, or telephone, each and every person on your list. Tell them what you’re doing, and introduce them to the concept of private lending and private money for real estate deals. Ask them if they would be interested in getting a little more information, and let them know you will be happy to sit down with them and go over it in detail.

The other option you have is to set up a lender seminar before you start calling folks. You can line up a meeting room at a place like a hotel or library, set a date and time, and let each one of your interested prospect know that you’ll be having an informational meeting. You should get at least a few who will want to come to get their questions answered.

In the next article, I will give you details on how to prepare and plan your informational seminar, so watch for it.

About the Author:

Tom Dunn has a wealth of material on Private Money Lenders. To learn more visit Beginning Real Estate Investing! You are welcome to redistribute this article, unedited and in it’s entirety, anyplace you care to. This footer, including the clickable links, must remain intact. 2008 by Tom Dunn.

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