Here’s how I find Private Lenders…
1. I post on Facebook about what I’m doing in REI.
Only some of the time. It doesn’t have to be “live” or with your face, but those DO get more responses- even just something about the webinar I just attended or a deal I may have. When I don’t have a contract, I post about a project “someone in my network” is doing. 😀 If you go live, just be yourself even if you mess up. People respond if you’re authentic. Reach out to every person who responds.
2. I talk about REI to my friends and family. (Not so much that you get thrown out of family dinners, though!😀)
99% of the people you know have no idea HOW to do this stuff and are fearful. I get them wanting to ask ME questions…. I’ll say one sentence….. Something about how fun it is to own properties in places I’ve never visited… or how I was messaging my fellow Navy friend Ryan who is partnering with me from Bahrain! Then I shut up. Guess what that does? It gets them asking ME questions! 😂 How could I buy properties in places I’ve never been? Then I get to tell them about the teams of property managers, contractors, turnkey providers, etc., I have … or what the market research shows. Or how I partner with people. Or the tremendous passive income I give my private lenders. The other people in the room who are just listening are often the ones who reach out to me later. I’m not “soliciting” when I talk to people. I’m just showing my enthusiasm for what I’m doing and how cool it is to offer people great places to live… and high passive income to my private lenders in my deals.
3. I send a basic text message to the people who respond to my posts or seem interested in person.
… Something like:
“Hey man, I’ve got a great opportunity right now that will bring you some killer passive income, all secured by real estate. I’d love to chat with you about it if you’re interested. If not, no worries. “
If I don’t currently have a deal, I still reach out, but change it up a little: “Hey, I’d love to chat with you about the great opportunities I’m always finding that will bring you…”
One of my mentors in another group recommended texting. I thought he was nuts until I tried it. It blew up my phone. 😂 People responded to my texts more than any other thing.
4. I Don’t Quit! If I’m not getting interested or need more private lenders, I cast a wider net.
It’s not a question of IF you’ll get private lenders; it’s WHEN.
It will happen. Just keep at it. I never stop raising capital. There are always people I have yet to talk to. I’m always meeting someone for lunch, a walk, or to hang out and talk about how I can help them make passive income. Or I get on a Zoom call and see how I can help them get into REI. The more you give, the more you earn. It gets fun when you start looking at capital raising as Offering THEM an opportunity. Figure out what they need …. and see how you can help.
5. A “No” can be a great source of information for a future partnership or private lender relationship. It just helps me find out what they ARE looking for.
Everyone wants to make more money. They may need more info on the process of private lending. Maybe they need Cashflow. They may need an offset for their tax burden. It could be an opportunity to talk to them about Self Directed IRAs so they can put that money into projects tax-free. I try to find out all this stuff FIRST so I can answer their questions and address their concerns, but some folks will still say No. It’s interesting, though… The people who say No almost always seek me out to ask me how my projects are going every time I see them! Some will eventually be a Yes, I’m sure.
At the end of every conversation, even with a “No,” I also ask them if they have other friends who might be interested in these opportunities. I’ve gotten many leads from that one question.
That’s what I do.
Again and again and again and again.
If you’d like to explore more private and commercial lending options, ADPI’s in-house lending team can help! Find out more at: https://www.activedutypassiveincome.com/find-agent-or-lender
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