Like all kinds of business invitations, it is important for you to make your invitation to private lenders interesting and fruitful. You’re the one making the first move, and first impression counts. Private lenders don’t just loan you money without testing you, after all.

Who Are You Gonna Call?

You’re looking for private lenders, people that will loan you money. So you’ll be targeting people with money. Your invitation, therefore should appeal to your target. Flyers or a website can be a good way to advertise for a private lender. But if you want to save the energy of putting up posters and flyers and the time to put up a website, you can rely on much more simple means of advertising like newspaper ads and postcards.

When and Where?

In making that newspaper ad, the first thing you have to do is make sure you’ve put down the important details. The place, the date, the agenda should be there, of course. Make sure it can be read easily by anyone, especially those with sensitive eyesight.

You might want to skip listing the time to get those interested to call you up. That way, you’ll get an idea of how many will be coming to your luncheon. You also have the chance to chat with the callers and start with marketing yourself to them with that call.

The Title Comes First!

Like every ad, a catchy title is needed. Make it interesting, too. Don’t just flat out state, “Private Lenders Needed” at the top of your ad. You can say something like “Tired of Low CD Rates?” or “It’s All About the CD rates…” Try to put yourself in the shoes of a private lender and see if the title you chose will catch your attention.

Who’s Buying Lunch?

Indicate who’ll be buying lunch! In most cases, it’ll be you. It’s your show, your presentation, and you’re the one asking for them to loan you money. You can control your budget by confirming those who’ll be coming to your luncheon. Call possible private lenders that are coming, ask them if there are any other private lenders that they might bring along, etc.

Share a Short Success Story!

A story about one of your private lenders that made a big deal that ended successfully would be inspiring and encouraging for the people you’re inviting. You can use this either for your ad or postcard. It would certainly get the attention of willing private lenders.

Bring In the Benefits!

If a person is going to invest money in something that could be risky, he or she would want to know what he or she’s going to get in return. He or she will also want to know if it’ll be a good deal for him or her.

You will mostly share the benefits of private lending to your audience during the luncheon. But putting in at least one great benefit on your ad or postcard will encourage them to give you a shot. Don’t put in everything in the ad. Leave some for your presentation during the luncheon.

Your invitation is what will bring you an army of private lenders ready to loan you money when you need it for your real estate deals. Before you can see them, before you can present your business to them, you have to get them to come to your presentation. This is why you can’t be careless with your invitation or your ads. From the very beginning, show them that you’re serious and that you can be trusted in doing business with them.

There are many resources from which you could ask for money or funding. The most commonly used resource is the bank. Others use hard money lenders, while some prefer to do creative financing or prefer their line of credit.

But there is one resource that can prove to be more advantageous and more beneficial to you. In fact, it can be considered to be the best, the simplest, the cheapest, and the safest way to get funding!

Private lending is a growing trend in the financial realm that is slowly being embraced by many. It’s a very simple process and you won’t have to go through all the hassles and headaches that a bank or a hard money lender does.

Why is private lending better?

First off, you have to recognize the disadvantages of using the bank or hard money lenders as your funding resources. With banks, for example, you most probably will lose the best deals that you want. There are also all those down payments, points, loan fees, and all the paperwork. It takes up a lot of time; it could take months for the bank to make a decision about your deal and by then you might have already lost the opportunity to acquire a property!

There is also no definite relationship with you and the bank. The bank would see you as just one of the many thousands of people wanting to get a loan from them, and with this perception could just flatly refuse to help you. Banks also makes some changes in their rules regarding loans.

You also have to meet important requirements for the bank to consider lending you some money. If you have a poor credit, it’s a “no.” If you have too many properties and too many deals, it’s another “no.” If your income doesn’t suit the bank, then it’s a “no.” If you leave or quit your job, you’ll get another “no.”

While banks are very strict and very time-consuming, hard money lenders will squeeze you dry and empty your pockets. In doing deals with them, you have to give a down payment of 15% and you have to pay the money back in twelve months. You’re also going to be covering the expenses for renovations and repairs. By the end of the deal, at closure, you’ll end up with less money while the hard money lenders have more.

With private money lending, you’ll be able to set up and close your real estate deal at a simpler and faster pace. No hassles, no forms, no sweat! With private lending, you are in control of your finances, have no monthly payments, and you have the ability to generate massive funding. What’s also great is that it fits every type of deal there is in real estate!

It’s quite simple and easy. It doesn’t require a lot of work and you just need to make a phone call once you’ve gathered private lenders that can help with your funding. There are no more fees and no more loads of paperwork. All you really need to do is gather up private lenders to a luncheon meeting or dinner appointment (whichever would suit you), explain to them your program, answer their questions, and make a professional relationship with them. Once everything is established, an army of private lenders and funding will be an easy reach for you.

The most important reason why it’s better to use private lending in your real estate deals is that you are in total control of the money. Working with banks and hard money lenders won’t give you that satisfaction because they have too many rules and requirements. With banks and hard money lenders, it’ll be like you’re begging for money. With private lending, and with the relationship and trust that you’ve established with the lenders, it’ll be just like taking out some of your savings since you know that they’ll just be there to help with the funding if you just call them.

Ultimately, it all boils down to being in control of the money and the situation. With private lending, you are.

As a real estate investor, it’s important for you to have definite funding and reserves. Real estate requires a lot of time and money, after all. One of the most used resources of funding for real estate deals is private lenders.

Private lenders have slowly become a very important factor in real estate deals. Not only are they easy to work with, you can just reach them any time and you get your funding with no hassle and paperwork. Private lenders work directly with you and you don’t run in circles just to get a loan from them.

Finding private lenders isn’t that hard to do. It’ll all depend on how you approach them, and the right way to approach them is to be open about your deals and how you go about with your programs.

First stop is posting ads and advertising to generate leads and audiences to your luncheon meeting (it can be other forms of relaxing conferences and not a luncheon). It is recommended that you target people who have the necessary means to give you a funding. Go over the yellow pages or the Internet. You can also call a list broker for names of private lenders. It is also better that the people you target have CD’s, or Certificate of Deposits.

Once you’ve established your target or leads, send out an invitation for them to join your luncheon. You can also send some information about what your luncheon is going to be about and when and where it’s going to be held. It is advisable that you don’t put the exact time for the luncheon. You can just put in the date and the location. This is because you would want your audience to come of their own free will and not pressure them to come at this exact hour. Keep a relaxing atmosphere as much as possible.

Make sure you get an approval for your ads, of course. You should also avoid all that “I guarantee you” and “low risk” talk. Businesses, and real estate deals, are mostly made up of risks and no guarantees. You should be as truthful as possible to your private lenders if you want to have a smooth relationship with them.

Settings like luncheons are much more preferred when finding private individuals. This is because a lot of synergy can take place in a luncheon. It is better than a one-on-one conversation with a potential private lender. The audience will be able to take notes and comment on your presentation, and share ideas and knowledge with each other. You’ll be able to liven up the mood better and show them your confidence and capability to control deals. The conversion rate would be higher and you’ll have a lot more private lending resources in a short time.

Dress properly and come prepared. When presenting your private lending program, you would want to be specific with your audience. Show them how you do your real estate deals; tell them which types of houses to buy, which ones not to buy, how to renovate, and so on. Stick closely to your agenda and organize what you’re going to show them and what you’re going to say.

Finding private lenders will be easier than getting funding from banks or hard money lenders. Banks have a lot of requirements and are strict with their policies. Hard money lenders can get a lot of money out of you when asking a loan from them, which is the opposite of what you would want. With private lenders, on the other hand, all you have to do is find them and build a strong trusting relationship with them. Then they’ll just be a phone call away!