There is an old saying that if you want to go fast, go alone. If you want to go far, take others with you. This is certainly the case when you are building wealth through real estate investing.
With the volatile stock market people are looking for other opportunities to invest their money, one of which could be in real estate. What if you could show them how they could earn secured returns by investing with you. It all starts with building a relationship and communicating the opportunity. They might be curious to be involved and your role is to educate them.
Begin by creating a simple, easy to read letter sharing what you are doing in real estate investing and that you have an opportunity for them. Make it dynamic and inviting. Make a list of potential recipients. Don’t discriminate by thinking someone doesn’t have money. You never know if they might have resources and are just waiting for someone who has skills and experience and is investing.
The key to this is to open the door for initiating a conversation. Send the letter and be willing to follow up. Remember you are not trying to sell them on the idea. You are only sharing an opportunity. Be willing to educate and make them comfortable. Never ask for the money…..only share the opportunity and be open to them taking you up on it.
Next, build a private money lending packet to outline who you are, your business goals and how private money lending could benefit them. Remember these people may only know one facet of you and have no clue that you are a successful investor. Include information about the teams who help you accomplish your goals. These could include your partners, your property manager and others.
Include information about why private money works better than traditional lending institutions in certain circumstances. Outline benefits that private money lenders gain when they lend money. These could include high return on investment and fixed rates of return. Outline lender security protections when they do lend money. These could include a promissory note to protect their interest and a recorded mortgage to secure their interest.
Private money lending is not for everyone. Any time you lend there are risks. However, there are also risks in the stock market and other investments. The biggest risk is the loss of opportunity to build wealth for your family by staying locked in fear. Life experience gives you the wisdom to share with others, making their path easier. You spend much of your energy going after your dream of building wealth through investing…..you owe it take others with you.
Sharing the Opportunity of Private Money Lending
