This Letter Is a Short 1 Page Letter Aimed at Getting a Prospect on Your Cash Buyers List

This letter is a short 1 page letter aimed at getting a prospect on your cash buyers list. This letter can be sent out to private lender prospects or cash buyer prospects. Either way, both of those types of people are great leads for private lenders for you because they have money and know real estate. The key when using public records or list brokers is to build a relationship with them first (like as a cash buyer or just in networking) then guide them toward being a private lender over weeks or months.

You’ll notice in this letter how I hint in the PS at “I noticed you’ve lent private money in the past” and go on to say that “we have buyers who use private money and I can pass those leads over to you if you’d like”. This is a great way to pique their interest on that front and totally reverses the “sale” so you’re not coming after them… you’re helping them out by referring them to your buyers. Then, over time as you build a relationship with this new buyer… maybe pass them one of YOUR deals that you need private funds for to see if they’re interested in it. Also, going with this approach you are not soliciting an investment with this letter. You are using this letter as “foot in the door” with them so you can build credibility and a relationship with them over time and convert them to a long-term private lender.

NOTES: The sample letter below is designed so you’re not sending out a “general solicitation” to potential private lenders. As we all know, if you send out a marketing piece (a website included) that “solicits” a person that you don’t know, to be your private lender… the SEC looks at that as a general solicitation and look down on it heavily.

So, if you have no prior relationship with a potential private lender… you don’t want to come out talking about your private lending program, asking them to be your private lender, sending a deal by them, etc. Your first contacts with a person who you don’t have a prior relationship with (some attorneys as a rough rule define a prior relationship as that you’ve had at least 3-5 contacts with them and/or have known them for a month or so… but check with your own attorney for their advice for your specific state) should be a contact that doesn’t address your private lending program at all.

As always, we are not attorneys and THIS IS NOT LEGAL ADVICE, nor should it be construed as so. This is just educational and informational. So, we always recommend that you hire a good SEC attorney for a few hours of their time to advise you on any specific exemptions, registrations, and/or actions you need to take in your specific state for your specific business… there are so many business models and different state guidelines that its impossible and irresponsible for us to try to say this technique is a one-size fits all solution.

With the PMOD technique (or any private money getting technique) its always best to think of creating a relationship FIRST… and asking them to be a private lender second (and frankly, its much more effective when you go that route as well).

Jane Doe

Their Address

RE: Discount cashflow properties here in [your city]

Hi [name of investor],

I hope you’re having a great week!

My name is [your name] with [name of your company] and we’re an active real estate investment firm here in [your city] and ran across your name in the public records that you’ve been active in our local real estate market.

Our focus has always been to find great properties that we can keep and cashflow ourselves… but the last 18 months or so we’ve been finding so many great deals and great properties with our relationships with the banks here in town and our marketing systems we’ve developed…

… that we have more great properties at large discounts than we can handle ourselves.

I just wanted to touch base with you since it looks like you’ve been actively investing in the local market with other investors in town… to see if you or some other investors you know are looking for great properties at usually 40-60% discounts to put in your own investment portfolio or to resell.

We’d love to put you on our “buyers list” if you’d like so we can send you over the new properties as we get them so you can jump on ones that are up your alley.

It doesn’t cost you anything… we just email out the properties we’ve put under contract to our small buyers list (usually 2 to 3 times a month is all) as we get them and determine they’re at least 30% discounts from market value. From there the properties usually get picked up within a week because of the deep discounts we’re negotiating w/ the sellers.

You can head to our website at to join the list or give me a ring anytime on my cell, [your cell #] to let me know you’d like on the list.

Also, I’m an open book… and truly love to meet other like-minded investors in town… so if you’ve got time this or next week I’d love to grab a quick coffee with you. I’ve just found that the more I share, get to know, and help other investors the more fun and profitable the real estate business is here in [your city] :-)

Have a great week and I look forward to connecting with you!

[signature here]

PS- I noticed you’ve done some private lending in the past… we’ve got a few dozen quality local real estate firms on our buyers list who pick up their properties from us. I know some of them work with private lenders to buy our properties… so if you’d like, I can pass you along those private lending leads so you can take a look and see if you want to put more of your idle capital to work for you.

I’m not a broker so I don’t want a referral fee or anything… I just want to help our good buyers close more quickly and help you deploy some of that capital that isn’t earning good returns for you right now. If you want me to pass those leads your way let me know :-) If it’s a fit, great. If not, no big deal at all.

[your name, company name and info]