3 Types of People Most Likely to Invest with You

December 4, 2008 | By | 1 Reply More

Real Estate Investment Finance StrategiesDue to the results of the most recent poll on the blog, I wanted to write a quick post on financing strategies.

In today’s market, it seems like every investor is searching for creative financing solutions. Most traditional means and methods that investors have used to close deals have all but disappeared. Which leads us to a question that I am hearing more and more . . .

“What’s the best financing strategy to take advantage of the HUGE opportunity in today’s real estate market?”

If you were following along on the blog about a month ago, you know that we are big proponents to the power of using private investors. We did an entire video series on how to get private money. Below is a breakdown on who you should approach to become one of your private lenders.

3 Types of People Most Likely to Invest with You

1. People That Know and Trust You

Credibility that you’ve cultivated through personal relationships is the best place to start when seeking private investors for your real estate deals.

Friends, family, neighbors, work colleagues, people from church, or really anyone that you have built a long term relationship with are good potential prospects. These are the people that regardless of whether or not they have interest or have available funds to invest will be glad to hear you out and give you constructive feedback.

And don’t be too quick to judge someone’s ability to invest with you. That will cost you big if you do. Set up the appointment and present your investment program. Even if they never invest with you, you got some practice presenting to them, you planted another seed, and they may refer someone to you that does have the interest and available funds to get started in your program today.

2. People That Know a Good Deal When They See One

OK, who would fall into this category? . . . anyone that is a real estate related industry will most likely know a good deal when they see one. Seek to network with real estate agents, mortgage brokers, appraisers, attorneys, accountants, home inspectors, bankers, title researchers, other real estate investors, etc.

If you contract a killer deal and show someone that knows what they’re looking at, it’s only a matter of time before you have it financed.

Practice your 30 second commercial (which I covered in video 3 of the getting private money video series), set up the formal appointment, and present your program or investment opportunity.

3. People That Know People That Have Invested With You

Yes, I’m talking about referrals. These people have already been presold by someone else that has experience investing with you. Nothing more powerful than that!

Once you get your first couple private investors, ask them who they know that may be interested in the program. You can also offer a referral fee for anyone that they refer to you.

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Category: Real Estate Investment Financing Strategies, Tips and Tricks

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  1. How to Find Private Money Lenders | Must Know Investing | May 19, 2009