Private Money Video Transcriptions
Chapter 1: Lesson 1 - Introduction to Private Money
Whether you have a long term or short term investment strategy, private money is the single most effective way to fund the growth of your real estate portfolio. Borrowing money from a private lender is very similar to borrowing money from a bank, except private money lending is easier and doesn’t have the stringent lending criteria that banks must follow. Private money lenders can offer very cost effective rates, flexibility with terms and interest payments, and what I like the most is that they don’t require as much paperwork as a conventional or government-backed loan. Before you get too excited, finish the rest of this course to learn our private money system so that you can leverage this strategy in your business.
Chapter 3: Lesson 2 – Research Your Prospects
Before you call your prospects that you met at the networking event, you’ll want to do some research and find a common interest. This is critical to your success, as building rapport is the number one way to make a prospect feel more at ease. You can do this in a few different ways. First, remember how we asked their favorite sports team back at the networking event? If they told you one, research that team, find out the last time they played, their record, players on their team, etc. Another option is to google their name and see what comes up. You can also use social media- Facebook them or look them up on LinkedIn. Basically, all you’re doing is finding something you can talk to them about to build rapport. For example, remember Kristi who I met at the networking meeting? She didn’t have a favorite sports team, so I looked her up on Facebook and saw that she moved here from Connecticut, and from skimming through her pictures I saw that she likes outdoors activities, just like me. So there’s our common interest.
Chapter 3: Lesson 4 – Prospective Lenders You Already Know
Lenders that you already know are the best type of lenders you can have, because you already have things to talk about and possibly a level of trust already established. How you qualify these prospective lenders will vary based on the level of relationship you have with them. If they are close friends or family, you may just jump straight to setting up a meeting with them. If they are someone you don't know as well or maybe have not talked to in a while, an email or letter is a great way to break the ice before setting up the meeting.
Chapter 5: Lesson 1 - Doing Business the Right Way
Your reputation is critical to your business. Always operate with integrity - ethically, morally and legally. Doing business the right way will build your business by bringing in repeat investors/customers and generate positive referrals. In this Chapter, you will learn about the important documents that you should provide to your investors to secure their investment capital.
Chapter 4: Lesson 1 - Private Money Meeting
Now that I have made a connection with Kristi from the networking event and we are having lunch, it’s time to get down to business. This chapter is going to give you an overview of the private money meeting, the points you are going to hit and how much time you might spend on each, but remember, the flow of the conversation is going to be based on what you get back from the other person. You’re going to have to be a good listener and use your emotional intelligence to make adjustments based on what the lender tells you about their sophistication, ego, and what drives them. Practice is the key component to all of this, so know your stuff. This meeting might get your foot in the door, but it is not going to close the deal for you. This is a catalyst. People are going to buy into this because they like you, so rapport building and confidence are also incredibly important. Let’s go ahead and walk through this!