Money, money everywhere!

Learn from my mentor and coach! Click the Products tab to the left :o)

Learn from Steve Cook, Shaun McCloskey and Me with our local coaching program by clicking the Coaching tab to the left :o)

Jacci's Blog

Tuesday, 15 December 2009

Money, money everywhere!

5 Comments

I think I finally hit the sweet spot in finding private money. I have been preaching my techniques to just about everybody for awhile now, but I think I just went into hyper-mode :0) It's amazing how many people (just ordinary looking folks) have money and are open to putting it somewhere else. The only way to find these people is to constantly be asking. In the last 3 days, I have picked up 3 more potential lenders. One is for sure giving me money in January from an inheritance, one is meeting with his advisors and needs to move his retirement funds into self-directed (which could take as long as 2 months depending on the companies he is with), and the other I just got last night and will be meeting with on Thursday to go over the details. If you are looking for private money, you just need to put it out there with everyone you meet. You do not need to ask them directly....you can just put it out that you are looking for people to earn "x" % (I usually pay 10%) and ask everyone you meet if they know anyone that they could refer to you. Many times they refer themselves! I have put a big focus on this lately and it is really going well for me. I have a goal to line up $1 million in available funds for myself and my coaching students to use over the next 6 months. This sounds like a big goal, but I have no doubt that if I keep at it, I will certainly acheive it! With this kind of line, the pressure is gone when going out and finding deals...it allows us to make offers freely and take advantage of the really good opportunities when they arise. I have also been setting it up where we do not have to make any monthly interest payments, so this clearly falls in line with debt-free investing. We pay our principal plus simple interest at the time of closing the sale and walk away with what is left as our profit.

Please be encouraged that if money is your only issue in getting started or moving forward, this is NOT a hard thing to overcome. Most of the investors that I meet cite this as their stopping block for starting or growing their business. If that describes you, just start asking. I think you will be suprised at what you find if you commit to the process and look! The 2 keys are to always be asking AND offer a high rate of return along with a mortgage recorded against the deed. An attorney or a good title company can help you get the mortgage doc drafted and recorded.

Make 2010 your best yet and start now as you see people over the holidays that you don't regularly get to see otherwise! Also set a plan for the new year in getting out and networking in your community to meet new people. ANYONE can do this! Good luck and God bless.

POSTED BY: Jacci AT 07:55 am | Permalink | 5 Comments | E-mail this

Comments:

Thanks for this encouragement Jacci. I am looking for Private money and was thinking of printing out an actual flyer to hand out to people who might have the money and savy to invest asking them to give it to someone they might think want to invest. Hoping they themselves might bite on it. So you go 10% with first position. Any other details you include? Thanks Jacci best wishes....Dave

Posted by DavG_WI on 12/16/2009 09:04:36

Dave (and everyone else thinking of doing this), Please be very careful of advertising for money. This is a dangerous practice with fine lines in securities law. Unless you are licensed, you are limited by the law as to what you can do. I make a careful practice NOT to do any advertising on paper! Flyers likely won't work anyways. You have to create personal relationships with people. I would really like to put something together for everyone that will help you do what I do, but I have to make the time to do that. If I get the chance to get that done, I will post it on my blog. Dave....you are in WI? Where? I'd be happy to help you, but I will not help you create any type of flyer as I do not look good in stripes LOL. Jacci

Posted by Jacci on 12/16/2009 10:00:07

Thanks Jacci. Wow I didn't think of those implications. I guess my intention was not to hand them out willy nilly but give them to specific people I would know who may be interested. I guess it's best not to put anything like that in writing though. thanks for the offer to help. By the way I met you and Brad in Chicago last year at the Lifeonaire/debt free investing meeting. I sat across from you for lunch.

Posted by Dave on 12/17/2009 22:24:21

Hi Jacci, I am reading these messeges and I am thinking that I really do have potential to get the hard money but I still can't seem to get past the credit problem. I have had down falls in the past but I want to pursue my pation of flipping homes. But here in Tennessee its all about the credit game. Do you have any contacts here around Nashville, TN. or any advice on how I can get hard money? I am currently studying Armando Montelongos Real estate course but He preaches about how he loves dealing with HARD MONEY lenders. I think once I make my first deal I should be fine but it's getting started that I can forsee some dissapointment in getting the resources to actually start. Any help would be very appreciated. Thank You William

Posted by William on 02/22/2010 08:50:32

William, The problem you're having is looking at hard money vs private money. Hard money is from a stranger who will likely take your credit into account and charge points up front as well as higher interest. Private money is from the people you already know have money in an account somewhere not making much. You can offer to pay them a significant amount more interest. I recommend you partner with an experienced investor for at least your first deal to give your private lender some assurance that there is somebody with experience who can "make sure" that the deal is good and things go well. Once you have done some successful deals, you will have your own track record to show them. You don't need good credit. Good Luck :0)

Posted by Jacci on 02/22/2010 09:09:31