How to Raise Private Money

Transcription

1 How to Raise Private Money Did you know that there is more than 1 Trillion dollars in IRA s and most people have no clue that they can use that money to invest in real estate?

2 Welcome to the Call Please Call this Number: Access Code:

3 Disclaimer I am not an attorney or CPA, the content mentioned in this webinar are my opinions and/or views. I am not guaranteeing you will get a gazillion dollars after this event. However, if you apply the ideas herein you should have some general knowledge of how to find private money. As always I would consult an attorney or CPA for financial advise.

4 Tonight's Overview Top 5 Ways to Find Private Money Best Things to Say to Private Lenders Why IRA s Are Your Best Friends What are the No-Nos when looking for Private Lenders Sources to Get More Information about Private Money Closing Thoughts Questions if we have time

5 Goals for Tonight Provide you with knowledge about how to raise private money

6 Why Do People Loan Money? Cash Flow Wealth Preservation Retirement To Build an IRA Account They can get better rates than a bank or stock market Lower risk than other types of investments

7 Why Do We Need Private Money? Purchase & rehab homes To provide extra time to wholesale a house (not recommended) Hold properties long term for cash flow What are some of the reasons you need private money?

8 Top 5 Ways to Find Private Money Private Lender Data Feed IRA Holders CD Holders Friends and family Accredited Investors Events: Banking Events, Rotary Clubs, IRA Events, Accounting Events, etc Can you think of some other ways?

9 Best Things to Say to Private Lenders Key things to keep in mind when talking to lenders: How you can help them solve their long term money problems. Cash flow, Real Assets with they can touch. You can help them grow their money tax free (IRA Equity trust). Talk about the deal and what's your plans for it (Have passion) Have a plan about what you are going to say to them. A overview of how you will use their money and how you will get it back safely. If you have used Cam s transactional funding before tell them how you borrowed X Dollars and paid him back in a short amount of time. Explain why you need longer funding time. (Refferals)

10 Why IRA s Are Your Best Friends Money is Tax Free (For Investors) You can get it very quickly Less red tape than banks Rates are much better than hard money Most people don t know they can use their IRA to invest in real estate

11 What are the No-Nos when looking for Private Lenders Don t Guarantee anything you can t back up or deliver on Follow the guidelines inside the Private lender data feed Know your local laws about how you can find private lenders Know how to use proper disclosures and disclaimers. We will do a quick walk through of the private lender website.

12 Tips from Cam and Mentorship Team Tip / What I'm looking for: Focus on people who are on a fixed income. Another tip would be to utilize our Private Lender Data Feed. Then they re contacting known private lenders who do not need to be sold on the concept. They ve already demonstrated their willingness to be a private lender. The key things I look for in a private lender are my ability to effect their personal income in a way that s safe and that they can t do any other way, and flexibility. If I want to do a loan at 7% for 13 years and 4 months, I want the lender to be ok with that because it s win win. It s a great return for them and I get the amortization and subsequent principal reduction I m looking for. Flexibility might mean something else to another investor or on another deal/exit strategy but flexibility, in general, on the part of the lender is key. The other thing the students need to get clear on is that the lenders need us more than we need them. Once they figure that out, although never flaunt it, the lenders will line up for their next deal. Lastly, and I ve learned this first hand as you may have too, once you fine one private lender, as long as you do what you said you would do, the word will spread and the rest will find you. Cam

13 Tips from Cam and Mentorship Team Tip: Don't get hung up on the details, just tell 100 people face-to-face how you fund deals and pay investors 10%. Do that, and you'll have all the private money you need. What I'm looking for: Someone who isn't a pain in the butt. This can be a dealbreaker when deciding whether or not to work with a private lender. -Jim Z

14 Tips from Cam and Mentorship Team Tip: Have a vision for the project and a burning passion to succeed! What I'm looking for: People I like to work with and share a common interest - Clinton D.

15 Tips from Cam and Mentorship Team Tip: Network, Direct Mail. What I'm looking for: Fair terms. Easy to work with. Ryan K.

16 Questions?