Could Your Cash Buyer Be Your Private Le...

calm So, I’m often asked if it’s possible to convert cash buyers into private lenders.

Well, folks, it’s not only possible, I’ll share with you 2 easy ways to do it.

But to get there, we have to take a step back…

…and consider whether a cash buyer could potentially be a good source of private money or not.

Hey Moguls, Patrick Riddle here, and from my experience, the answer is a heck yeah!

Check this out…

What is a cash buyer?

So, I’ve been in this business for a while now and I’ve noticed something…

Investors aren’t looking at cash buyers the right way.

What does that mean?

Well, what is a cash buyer?

A cash buyer is simply an investor who’s buying deals.

I know, I know, you’re thinking, ‘Duh, Patrick, we know that!’

But go with me on this…

Sometimes, cash buyers/investors who are buying deals might not have a deal they’re working on at the moment.

But do you know what they do have?

CASH.

And, wouldn’t you think that they’d love to put that cash to work?

Of course they would!

After all, we’re always taught to diversify as investors.

So, maybe these cash buyers not only want to buy real estate as an owner… but they might want to lend their money against real estate. I’d say that’s a pretty good way to diversify and make money through various avenues of investing.

Allow me to share a personal story that really drives this idea home…

So, one of my first private lenders was actually an active investor. He was at our local Real Estate Investment Association (REIA) meeting. And as it turned out, he had some extra cash on the side… mattress money, if you will.

I showed him a great deal I had under contract. And he liked what he saw.

Guess what?

He ended up providing the funding to pay for not only the purchase price—but also the rehab holding costs—and basically all the costs associated with the deal.

Want to know how much of my own cash I used?

Not even 1 penny.

cashbuyers We crushed it on this deal simply because I met this active investor—who’s also a cash buyer—who knew a good deal when he saw one.

Alls I did was show him an opportunity. And we both won!

So my point is… you need to remember that there are cash buyers out there who are seeking opportunities to act as a short-term private lender on the right deals.

And what’s super awesome is that you don’t even have to explain anything to them or try to ‘convince’ them to do it… they already know how all of this works.

It’s minimal effort for you—and them—but great rewards on the other end for you both.

Just think of this…

I know several investors who have self-directed IRAs, but the challenge with those is that they can’t buy their own deals through their own self-directed IRA. So, they have to leverage other investors’ deals—YOUR deals—and use the funds that they have in their self-directed IRA to fund those deals.

Converting cash buyers

Okay, now that we see why cash buyers can be your private lenders, let’s talk about how to do it…

And I’ve got 2 terrific automated strategies to convert cash buyers into private lenders.

To get started, we simply need to know which cash buyers are interested in private lending opportunities.

One stupid-easy way to figure this out is when you’re qualifying people to be cash buyers...

If you use a cash buyer questionnaire form to qualify them, you could simply add a final question on your form: “Are you interested in private learning opportunities as well?”

See, stupid easy. Just ask the question on your website…

You do have a website, right? (I sure hope so, it’s pretty crucial!)

So, on the site where you’re capturing leads to add to your cash buyers list, you should have the questionnaire form… add that question to that online form. When the cash buyer clicks ‘Yes’ when responding to that question—BAM!—you’ve just converted your cash buyer into a protentional private lender.

Then all you have to do is present them with the right private lending opportunities.

Another automated way is having an autoresponder service tied to your website... so just have an email that’s automatically sent to every cash buyer who visits your webpage and provides you their email address.

The email can read something like:

“Hey, thanks for checking out my site. I know you’re interested in buying properties and good deals, which is great. Are you also potentially interested in a private lending opportunity? If so, hit reply and we can talk for more details.”

The bottom line

See, that’s 2 super-easy, automated ways you can get the job done through your website:

Include an extra question when your cash buyers are filling out your form
Use an autoresponder to send them a specific email to get them to tell you if they’re interested in being a private lender

So the bottom line is always keep your eyes open and have your business set up in a way so that you don’t miss out on potential opportunities.

Simply ask a question. Sometimes the cash is right in front of us.

Whatcha think?

How do you convert cash buyers into private lenders? Share below.

Consider that every cash buyer you talk to may also be a potential private lender.

Add an extra question on your cash buyer qualification questionnaire to see if those investors are also interested in being your private lender.

Set up an autoresponder email that gets sent out to cash buyers who visit your webpage, asking them to reply if they’re open to private lending opportunities.