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A Brainstorm List for Private Lenders

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brainHey there Moguls, Patrick Riddle here to talk to you about private lenders. Perhaps you’ve been considering reaching out to private lenders to help get your investing business into high gear. You’ve heard that the best way to begin this process is with your “warm prospects.” But every time you try to compile a list of possible warm private lender prospects, you seem to come up empty.

Well, guess what? You’re not alone. Nearly every investor has experienced the same problem – me included.

We’re talking about sorting through those in your close sphere of influence. These will be people you already know who might have “mattress money” of some sort – they would be great candidates to invest private funds for your REI deals.

It’s not like you don’t know lots of people, right? But getting that list of names on your own is a tall order. It can be a struggle.  

This lesson is going to help you over that hump by inviting you into a little brainstorming session. I’m going to help clear away the fog for you – and I’m going to do it by sharing a BIG list. This list should help you immensely in brainstorming your own warm list of potential private lender prospects. It’s a handy-dandy chart that I put together and even if I have to say so myself, it’s awesome!

Plug and Play

Behold! This wonderful chart below of 44 types of people will serve as your brainstorming aid for locating possible private lenders. The best way to begin is to grab for “low-hanging fruit.” (This refers to your “warmest prospects.”)

chartThese are people who you already have a personal relationship with. They’re often easier to convert into private lenders than someone you don’t know.

A Word of Warning

As you go through the list, don’t make the embarrassing mistake of disqualifying someone. This is a mistake that I see people making all the time. They use their own perception as a gauge as to whether or not a certain person has the interest, or the ability, to invest.

Let me be perfectly clear on this: Don’t disqualify any prospects!

Why is this so important?

First of all, you are not all-knowing. You may mistakenly assume that someone has zero available cash, only to later learn that they have access to more than you realized.

Let me share this true story with you to explain…

minezOne of our faculty members and long-time good friend, Susan Lassiter-Lyons, swore up and down that her uncle had no funds and would have no interest in her real estate business. To her surprise, not only did this uncle have a ton of money, he ended up investing large sums of it in her real estate deals. He was delighted to find something better to do with his money than let it sit under his mattress (quite literally).

This is a sterling example of how preconceived notions can be such a problem. Susan came so close to losing out on hundreds of thousands of dollars in capital from her uncle. Yep, that much.

Sad to say, but this happens all the time! Newer investors typically assume no one in their circle has access to any significant capital. Or, even worse, they assume no one would ever be interested in loaning money to “little old me” for their deals.

Stop right now! No more preconceived assumptions!

3 More Important Points

1. Practice Makes Perfect

Make it a point to approach as many prospects as possible. This will give you an opportunity to run through your private lender presentation. More practice can never hurt. Right? The more practice, the better you’ll be at presenting and guiding people through the process.

(Mogul Elite Members: Download Patrick's Private Lender PowerPoint presentation in the Power Pack Tools for this lesson.)

2. Think Ahead

You may make a presentation to someone who has no investment capital at the present time. However, a few years down the road, they may receive an inheritance (or some other windfall), and they’ll remember your presentation. They’ll be excited to know exactly where they can invest and make a good return on their money. Wouldn’t that be nice?

word3. Word of Mouth

Word of mouth is huge in our industry. Perhaps you presented this opportunity to someone who, for whatever reason, did not invest with you. But they know someone who is interested. That first person now becomes the matchmaker with the two of you.

The more people you meet with who fully grasp what you’re doing – from listening to your awesome presentation – the more likely they are to give you great referrals.

Go For It!

Hopefully, the information presented here will motivate you to use this list to launch you out there. Make a copy of this chart and begin to fill in each square with specific names associated with all of the categories listed. Now you have your own personal list of potential private lenders.

Go down the list one name at a time and set up appointments to give your private money presentation. Make an appointment even if it’s only to practice your presentation and get your name out there that you’re a serious real estate investor.

Perhaps you’ll say something like: “I just want to present this to you so I can practice and get more comfortable presenting.” This type of invitation will help you feel not so threatened or fearful.

Don’t hold back. Go for it!

I’m Listening…

Who are some of your warm private money prospects? Share your tips in the comments section below.


Do It To It! Immediate Action Steps

Use the chart by filling in as many names as you can think of in each category.

Go down the list, contact the people and set appointments.

Tell the prospect that you want to use the appointment to simply practice your presentation.

Ask for referrals – always.

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