private investors needed! - Posted by logan

Posted by rdlazo on March 03, 2005 at 07:41:20:

Briliant thoughts Zack.
Folks here they are, enough money for your deals.
Keep your word, be truthful, maintain good track record and reputation.
Best thing is to reach the point that banks will give you line of credit for all your deals.
I met this guy who have that and I said to my self
"I can get there".
I am not there yet.

I am learning a lot here.

private investors needed! - Posted by logan

Posted by logan on March 02, 2005 at 20:46:10:

anyone know how to get good private investors?

Re: private investors needed! - Posted by Miguel A. Valdez

Posted by Miguel A. Valdez on March 12, 2006 at 10:32:17:

I have a dry cleaning business that has been very successful and need funds to consolidate expansion project. Need long term investors

Re: private investors needed! - Posted by John B. Corey Jr.

Posted by John B. Corey Jr. on March 04, 2005 at 06:52:00:

As was implied by a few of the posts you need a track record to really attract private money. At least you need this if you are dealing with folks who do not really know you.

If you try to use family and friends they tend to remember something you did not do well in a prior life and therefore discount the deal by that memory. Even if they invest with you do you want to take the risk of losing their money and then having to deal with them going forward. Even with the best intentions negative deals still happen. A deal can be a negative to a private investor if they make money but it was stressful or otherwise not as they expected.

If you can not find private money (or lack a track record) but are really able to find good deals then wholesale the deals or use hard money. Then write up the deals as if you had private money and how the deal really went down. Use the two descriptions to show how things could have been if the potential investor knew you when you had the deal. Do not lie. Just show a proforma that shows a possible outcome.

John B. Corey Jr.
Chelsea Private Equity LLC

Re: private investors needed! - Posted by john

Posted by john on March 03, 2005 at 06:48:58:

hey Logan,
I just created a 200K private loan last week. I (my wife) created a brochure of the investment with all pertintaint facts and info, even color pictures. Thursday I went to dentist and took the brochure along. I got into the chair and gave the brochure to the dentist to look over at her convience. She called me 3 hours later and we set up the paperwork. I got a call yesterday that 2 more people in the office want to know when I get another oppertunity like this.

Re: private investors needed! - Posted by Zack W

Posted by Zack W on March 02, 2005 at 22:58:56:


It is not easy but completely possible.

1] First you need prospects, right? You need to target people who CAN, if they decide to, give you money. Some ideas are relatives, friends, co-workers, doctors, dentists, lawyer, accountant, neighbors, etc. Once you have a couple prospects you need to know what to tell them.

2] Create a plan for both you and them. Exp - [You] Buy houses in need of repair at substantially less than fair market value. Renovate the house and resell it quickly to an owner occupant for a profit. We call this retailing. [Them] They lend you money at 10,12,even 15% simple interest for a term of 12 months. You pay them interest only payments monthly, quarterly, or whatever you agree to. You promise them you will not ask for more than 70% of the after repair value ensuring their loan will be protected by sufficient equity should the deal go bad. You give them a title insurance policy, a homeowners insurance policy, a 1st mortgage position, a persoanlly signed promissory note and appraisal on the property. You also share your plan with them as to what you are going to do to the house i.e. buy, fix, sell.

3] Turn plan into marketing tool. Now that you have a plan convert it into a marketing tool you can use to recruit private investors. Create an Introduction to your opportunity explaining what it is you do and what you can offer them. Jazzz it up with questions like “Are you happy earning 4.9% on your CD’S, if not I can help” Stuff like that will keep their attention.

4] Put this Introduction packet in the hands of all of your prospects from Step One.

5] Wait for the calls. Prepare a prsentation to sell this opportunity to your prospect. It would also help to create a package building credibility for yourself, for instance a credit report, list of assets, previous deals, referall letters, employment info, whatever you have that makes you look good should be included.

6] Present the opportunity educating your prospect on what Private Lending has to offer.

7] Pay pay pay them back and do another deal.

This is a brief summary of what you should do. I have successfully raised over 1.3 million in priavte money in the last 18 months. Here is what I did. I found two people, 1 started me out with 100k, he is now up to 500k, and the other started me out with 50k, then 100k, then I showed him how he can make money by raising money from other people. He has since raised over 700k from family and friends and takes 3 points off of every deal they do with me. Half of his people use their IRA money and run it through Equity Trust in Ohio. This guy now makes about 50k a year rasing money for me, sweet isn’t it?

Good luck. Private money is an amazing thing and will make real estate investing so much easier once you find it. Also keep in mind, if you find a deal, I mean a real money maker, the money will always be there.

Zack W

Re: private investors needed! 1 OF DA BEST IDEAS - Posted by rdlazo

Posted by rdlazo on March 03, 2005 at 07:25:55:

Good job John, What an awesome idea.
As it is location location loation in finding real estate.
It is track record and reputation when it comes to finding investors and of course you have to market it.
There is always enough money for good investments.
I am now in the process of getting a credit line.
Just my thoughts