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.
That first contact ideally is a contact just to "get to know them" or to send them a marketing piece that offers them a free educational report/video/etc. on a topic… such as "How To Use Your IRA To…
Patrick Riddle
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.