Letter to Private Mortgage Lenders? Thoughts?

[Kenneth E.]

Hey guys,

I have come across a couple lists of high net worth people who have been lenders on private mortgages in the local county and I am considering sending them a letter seeking REI loans. I have read all the posts about sending letters to strangers asking for money but I am not asking them to INVEST in anything. Rather, I am seeking private LOANS for rental properties. So, please—no lectures on SEC regs!

For those of you who actually lend on long term private mortgages (not short term Flip hard money lending), can you give some thoughts on the letter below? Is it too cheesy? Should it include more? Can you help give some pointers on what would make it more effective? It might yield a zero response rate and I am ok with that…just trying a new avenue for the experience. Plus, if it works, it will be right here in the open so other BP members might be able to use it for their own purposes.

January 18, 2013

Name Address

Dear :

I came across your name in the xxxxx county public records as someone who is a local property investor. Either that or, you’re a private lender who loans on properties…

I am writing to you to discuss some possible ways that we can work together. I, too, am a property investor here in the area, and I’m always looking for other “serious players” with whom to network, exchange ideas and resources, and ultimately, with whom to create a long-term, mutually beneficial relationship.

Specifically, I am seeking private money lenders who are looking for better returns than they are getting in their savings accounts, CDs, money market, or from their retirement fund. The returns of 9%-11% (negotiable) would be for first-position private mortgages on cash-flowing multi-family properties which are secured by real estate and are fully insured. Even the payments to you will be deducted straight from my bank account. No waiting for a check each month! Terms are negotiable.

Thanks,

I look forward to meeting you!

Yours truly,

XXXXXXX

P.S. Oh, and by the way, if you want to talk sooner, you may always reach me on my direct line at
XXXXXXXXXX, or you can email me at XXXXXXXXXXXXX. Thanks! It’ll be great to talk with you!

[Ann Bellamy]

Although I don't lend long term private money, when I get letters like this it screams newbie-I've-never-done-a-deal-but-am-trying-to-sound-like-I-have. So I add them into my marketing database. But I don't call them with an offer to lend money.

Most private lenders come from a relationship, not a letter, but if you're going to try direct mail, at least outline your experience so that you don't sound as if you've never done a deal.

PS - there is nothing wrong with being new, it's just that this letter sounds as if you are new but trying to sound experienced.