This is an article dedicated to those who want to become successful real estate investors. Whether you focus on fix and flip deals or cash flowing rental properties, you must have private money lenders to fund your acquisitions. In order to attract private money lenders you must be the type of investor who stops raising money but starts attracting it. The art of attracting money will reduce your need for a rehab loan or investment property mortgage.
By having private money lenders coming into your business I don’t mean that you go out and hold luncheonsor pitch your deals to just any Joe Shmoe out there, or just blindly sending out mail to doctors or attorneys. I want you to build a foundation first.
You must build a business that will allow you to attract money instead of selling the idea of your business. Direct mail and one on one meetings can work but what I want you to do is to become really good at building a foundational business, which is going to allow you to attract money into your world as opposed to raising money.
Most likely this is a new concept for most people as it goes against the traditional methods of raising private money from lenders. It took me awhile to get use to that idea but once you grasp it, you will begin to realize that all of us have some sort of attractive business model that we can present to private money lenders which will build our credibility. We are regarded experts in our field who can provide real value as it relates to real estate and the need for a reahb loan. We must realize that until we become comfortable with this action to relay that fact to potential investors the money will not come to us.
Most likely the rehab loan lenders or investment mortgage companies aren’t going to care about our new approach to raising private money. The strategies I am describing will allow you to attract less expensive money than a rehab loan or an investment property mortgage. The goal is to develop a relationship with private money lenders, allowing them to get to know us, to trust us, to like us so that they fund our real estate deals. Raising private money is the number one problem real estate investors have, they pitch their deals to investors, but now you know this is the wrong way to do it. Build a foundational business which to attract private money into your business for real estate transactions. I want you to go to attractprivatemoney.com right now. We have a video series which has seven tips and tricks on how to attract private money into your business.
Get tips and tricks on obtaining a rehab loan. More importantly though, you need to click here to learn how to stop paying high fees for rehab loans and start raising private money.