Finding
Private Investors
Need
quick cash to close a short sale and take your
pre foreclosure business to the next level?
One
of the most critical elements of real estate Investing
is where to find the money to fund your deals.
Some of those choices are:
1.
Banks
2. Credit cards
3. Lines of credit
4. Creative techniques with the seller
5. Partner(s)
6. Hard money lenders
7. Etc., etc., etc.
The
burning desire to finally become the full-time
real estate Investor had come to fruition. I quit
my full-time job of 17 years in November of 2001.
With this career change, I immediately needed
to face the nagging problem of “Where do
I find private investors to fund my real estate
deals?”
Without
a serious influx of cash in my business to acquire
and rehab properties I would not be able to take
my business to the next level.
This
was a part of the business that I had neglected
and it had been setting on a back burner. Now,
it had moved up to a #1 business priority and
I needed to solve it.
My
plan was to hold a seminar to attract private
investors to invest in my business.
I
would pay them 15% simple interest for their investment
money and secure their investment principle with
a mortgage.
What
steps did I take to get my seminar started?
1.
Target a seminar date.
Setting a deadline was vital to making the seminar
happen. It made me focus.
2.
Pick a location.
a) Hotel/motel
b) Country Club
c) Church
3.
Target my investor group.
I decided to focus on people that have invested
in bank Certificate of Deposits (CD’s).
4.
Buy a list from a list broker of people locally
that had money on bank CD’s.
5.
Create an investor packet:
a) Introductory letter.
b) A reference page showing how their principle
is secured.
c) Blank promissory note.
d) Sample sheet showing the returns for various
investment amounts.
e) Put the above packet in a nice binder, including
a business card.
6.
Create a credibility book and spiral bind.
7.
Create a Microsoft PowerPoint® slide presentation.
a) Define the private investing program.
b) Share information about my real estate business.
c) Stay focused and leave out information not
relevant to real estate.
8.
Create a Microsoft PowerPoint® slide presentation
of the homes I have purchased. This is
running continuously as people are waiting for
the seminar to start. Goal is to build credibility.
9.
Design a postcard to mail to the list of people
with CD’s in my area. The postcard
is to attract people to the seminar.
10.
Design an ad to be run in the local newspaper
to attract people to the seminar.
What
did I do prior to the seminar to generate leads
and prepare for the day?
1.
Practice, practice, practice the presentation.
2. Mail postcards two week’s prior to the
seminar.
3. Run a daily newspaper ad one week prior to
the seminar.
4. Order overhead slide projector and large projection
screen.
5. Coordinate seating and layout with the meeting
location.
6. Make up handouts/packets.
7. Practice the seminar presentation more.
What
actions did I take the day of the seminar?
1.
Dress professionally.
2. Set up a sign-in table at the back of the room
for people to sign-in and get a name badge.
Keep
it fun, professional and not high pressure.
The goal is to help them understand your program.
Don’t Beg!!
The
results weren’t what I had expected!!!
I
expected 25-30 people to show up at the seminar
and I expected a flood of money immediately. It
didn’t happen that way.
What
did happen, was that roughly 12 people showed
up for each seminar and normally within one week
after the seminar one person would invest. Although
90% of everyone that attended were very positive
about my Private Investing Program. I felt that
I had failed.
However,
then the unexpected began to happen.
1. Weeks later, people who had attended
the seminar, would begin to call and tell me they
had money to invest. Rather than the
immediate flood of money I had expected, I started
to see a constant trickle in of money.
So the seeds I had planted weeks before were bearing
fruit.
2.
Referrals were showing up!
People that had never attended the seminar wanted
to give me money to invest NOW! Two of them were
$100k plus investors.
3.
My credibility within the community grew.
A number of people that hadn’t attended
the seminar but had heard about it would approach
me and ask me about my seminar and my business.
Today,
four months after my first seminar, I have more
money than houses. What a great feeling!
In
the future, to take my pre foreclosure business
to a new level, all I need to do is hold a private
investor seminar to generate the investment money
I need. It is just like turning on a faucet of
money.
It
works.
About
the Author: Alan Cowgill is a national speaker,
author and real estate entrepreneur. Alan had
bought or sold over 200 investment properties.
His step-by-step system "Private Lending
Made Easy" teaches Real Estate investors
and mortgage brokers how to find private lenders.
Contact Alan at 937-390-0816 or 866-831-3540.
For a FREE audio CD go to http://www.FreeRealEstateCoaching.net
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