Raising private money for your real estate deals is not difficult when you know what to do.
Brant Phillips shares tips on how to raise private money for your real estate investment deals.
Transcript:
I like to talk about the word advocate rather than pitching deals, and asking people to borrow money. An advocate is a person who speaks or writes and supporter defensive a person, or calls. That’s really what I learned to do years ago is just to be an advocate for private lenders. I’ll show you some ways that I’ve done that, and some ways that you can do that as well. So what’s better, right, like pitching a deal to get funded at the last minute, been there done that very stressful, not fun.
Unfortunately, when there’s networking events going on and there’s not a whole lot going on right now because due to COVID. But I see it at these events and they’re pitching a deal and they’re desperate, I had a guy text me today’s need last minute funding on a deal. It’s not a fun situation to be in versus having private lenders just waiting line asking you if you’d be willing to allow them to invest in one of your deals, I can go on my inbox right now and show you lenders have emailed me today asking that. So it’s a good problem to have. I encourage you to do is once again just like McDonald’s, just like Coca Cola, to have consistency. Just be consistent in your efforts. Don’t worry about perfection especially in the beginning, because you’re not going to know all the answers to all the question that lenders have.
You’re going to make some mistakes and things like that in terms of your communication, don’t let it be in your actual performance of the loans but just in communication. As you do this more and more and more and talk to people and help people and answer questions is information, familiarity and experience increase. Fear subsides and this is important because this is the same thing for your private lenders. The more information that they have, the more familiarity that they have with you and with our private lending industry and process and experience. Their fear is going to subside as well.