Find Private Lenders Now CHAPTER 5. How To Create Your. 78 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

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1 CHAPTER 5 How To Create Your Credibility Kit For Success 78 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

2 1. Credibility *Company overview *Bio on principles of company *Portfolio of properties *Life Insurance *Testimonial Letters *Website The importance of a private lending package goes a lot further than just having a casual conversation with somebody. When I m talking to a private lender, I say, Hey Mike, take a look at this. I may have given him a tri-fold, but he wants some more information. I m busy. I don t want to be doing the big talk session, right? You re not going to keep someone s attention for very long, their phone is going to ring and you re standing there with your teeth in your hand waiting. I ve been there, it s painful. So I give him my private lending package and say, Take a look at this. Show this to your girlfriend, or your wife, your loved one and I know you ve got some business associates, show them this. This is a phenomenal business. Speak with confidence and conviction. You need to have a well developed and professional package they can review at a later time. Potential investors are going to have to review this opportunity with their spouse or loved one and analyze exactly what you are promoting and what you are presenting to them. That package is known as the credibility kit. First and foremost in the credibility kit is your company overview. Your goals, your philosophy and how long you have been in business and so 79 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

3 on. Your company overview will let people know what you do and your investment approach. Enlighten them to your expertise in the real estate marketplace. Put together a bio on the principles of the company. Tell a little bit about yourself and your story. Remember, the people who are reading this information will want to feel good and feel comfortable with you. Your bio on your principles is almost like a resume. People want to know your background. Tell a good and truthful story. Next, you need to have examples of deals that you have done in the past, or Real Estate transactions similar to what you have been accomplishing in the past 30 or 60 or 90 days. You may also use examples of deals that you plan on accomplishing in the next 30, 60, 90, 120 days. Also, show them a portfolio of properties that you have whether it is one property, two, five or twenty. Another suggestion is that you have Life Insurance protecting yourself, protecting your investors in the event that something happens to a key owner, possibly yourself or one of the key owners of the company. Having a life insurance policy covering all your obligations allows you to present an even more secure picture to your prospective investor. It puts their mind at ease in case something tragic happens. Your untimely demise would have no effect on their security whatsoever. Testimonial Letters, these are very important. Get these from your investors. A short endorsement works wonders, even if you have to write it for them. Have these folks emphasize that they are very comfortable and very pleased to have that investment with your company. 80 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

4 If you don t have Testimonial Letters because you have not done a deal yet, that s okay. At least have some type of letter, possibly a letter of recommendation from a professional you ve known over the last several years. Maybe an attorney or an accountant, stating that you are a credible individual and you have a good work ethic, and that you are going to be successful because of whom you are and the business model you re using. You might have them mention that they re looking forward to doing business with you in the near future and that you come highly recommended as a professional individual who s going to have success in your field. Put together a website. This is very important for you to drive your business and also shows you are utilizing technology. Everybody likes to go home, get on the internet, pull up your website and review it in a very nonthreatening manner. This gives you another important tool to get in front of private lenders, instead of talking all the time. Use your website to explain to your potential private investors how they can use their IRA funds to invest in real estate. And give them a link on your website to the 3 rd party administrator of your choice. When they click the 3 rd party administrator link and they see that they manage $500 million in IRA funds and that you are synced up and doing business with them, whoa! Instant creditability. A website makes you immediately credible at the click of a button. They can be learning about your company from the comfort of their home or office. 81 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

5 2. Investment Information *Feel good letter *What banks know *Investment highlights *Investment examples You should supply several pieces of background information. First, include an overview letter of what you are providing and an introduction to your company. The introductory letter will set the tone for the whole package that your prospective investor is going to be reviewing. Another important piece will be your investment highlights, or what all the steps are in doing business with you. This is a detailed sheet which gives them all the pertinent or important information on the investment and highlights the security in the investment. Use real investment examples. Your investment examples will actually be real properties that you have secured that you want to finance with private lenders. The importance of this investment information is that it gives your prospective lender the information and education so they become an informed investor. 82 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

6 3. Industry Articles *Retirement articles.wall street / USA today *Magazine articles. Money magazine / Kiplinger s *Your city articles.. Strength of local market Include such things as retirement articles, Wall Street Journal, USA Today articles, and perhaps relevant trade journal articles. Also consider entering different magazine articles such as Money Magazine, Kiplinger, Business Week, US News and World Report. They are everywhere, just start looking for them. I came across one that I couldn t believe at the time, it was titled, Weary of stocks and bonds, more people than ever are learning to invest outside the box. This just reinforces everything I ve been talking about to my private lenders in recent years. What did the article say? 10 s of 1000 s of investors have switched their retirement savings to self-directed accounts. Since the stock market correction, 3% of the 3.5 trillion held in IRA s is now in alternative investments. Fortune estimates their assets at rate custodians are growing, almost 30% annually. These articles are surfacing all the time, you should be able to open the paper in any given week and find articles that further point to your investors the benefits of your private lending program. In addition, include any articles appearing in your city paper speaking about the strength of the local real estate market. Include any information on new projects, new highways, shopping centers, new infrastructure projects, anything promoting your city. Use any material you can put your hands on, to make your prospective investor feel comfortable, feel good about investing in real estate in their area and with your company. 83 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

7 4. Private Lender Book *The documents your lender receives from their investment. This is a very important book that you must prepare. It is an actual example of a Real Estate transaction that you will give to the private lender who has made the investment on that property. They are going to be able to take a three-ring binder with all the pertinent information on that particular transaction. They will be able to take it home with them and refer to it any time they need to. What is very important about the Private Lender Book is that it puts the prospective private lender s mind at ease knowing he has the information on a specific piece of property, all inclusive in a three-ring binder. Besides that, they will proudly show it off and lets them know how safe and well-invested they are, thanks to you. A referral is thus developed. They are the actual documents that he will receive from the closing table, for example, a copy of the Promissory Note, Title Insurance, Hazard Insurance, etc. Put time and effort into this, so that when you meet with an interested private lender and leave them your package, you are leaving them with a powerful, informative, and exciting piece of your business, because the most important meeting you will have with someone is the meeting after the meeting. What do I mean by this? The meeting after the meeting is after I talk to some private lenders and I get in my car and hit the road, and I m heading home to my family, I ve left that person. The meeting after the 84 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

8 meeting is the most important one, here s why. Because I ve done a good job and all of a sudden they leave and my private lenders, Cathleen and Charles, say, That Jason, he s a nice guy, he s really knowledgeable, he understands those IRA s and I ve been telling you about that IRA, we need to do something with it. You don t think husbands and wives have those conversations? I know you ve been telling me, I told you about it 2 months ago. It s just the way it is. The meeting after the meeting is so critical. Treat people like a pro, treat them with respect, give them some info and hit the road. That s the meeting that s important, not the one where you re sitting there talking overkill. Just give them a little bit of information, then hit the road, get out of there. The meeting after the meeting is the most important, and what you leave them with, your private lending book, is just as important. More detail is provided in Chapter 7 about how to create your Private Lending Book. 85 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved

9 CHAPTER 6 Your Step-By-Step Guide To Creating Massive Wealth Through Private Lending 86 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved