All Forum Posts by: Alvin Grier

Thanks for replying. It won't be FHA, it's a private mortgage.

That's what I figured. Thanks.

Do you recommend the lender go through an AMC?

...assuming, of course, that the lender doesn't already have a relationship with an appraiser that they trust?

Note: In the context below, I'm referencing a situation where a private lender is funding the purchase/rehab/reselling of a property with an experienced real estate rehabber/investor.

Before the lender funds the purchase of the subject property, it's in their best interest to get an appraisal. The appraisal will make them more comfortable with the ARV/LTV ratios they calculated as a part of their deal analysis.

With that said, who normally pays for and orders the appraisal for the subject property; the borrower/real estate flipper, or the lender, as it is with a traditional lender or bank?

@Matt B. so you're saying that you just so happened to have people on the list your bought that you already knew, and that they were the only ones that ended up lending out of all the people you mailed from the list?

I was looking at the Find private lenders now program, and it's $1300. Other than the training, they claim that it gives you access to contact information for people that already are lending money for deals.

But what I don't understand, is how much difference what they provide (other than the training) is from what I can get from Listsource.

At Listsource, I was able to get a list of people/entities/trusts that have lended on private mortgages within select counties in the last six months for under $10, so I'm wondering just how much more the Find Private Lenders Now program could really provide.

Does anyone have any experience with the program that might be able to share any insight on my question?

But, I must say, I've found way more information out there that talks about using the "drip" method you guys mentioned with the people you know, versus trying to pitch them.

That's what I prefer anyways, because I did about 8 years of MLM/Network Marketing in the past, and "pitching" family and friends was the main thing I hated about it.

Maybe I'll dust off my Facebook account and leave updates here and there about the things we're doing. I'm way more comfortable with that approach, anyways.

I think the pitch method (albeit a soft pitch) should be reserved for reaching out initially to people I don't know, like from mailing lists.

You guys seem to know more about this than I, so I'm definitely going to listen; you never get a second chance to make a first impression, they say.

Thanks for the feedback. To me, it sounds like this is similar to how there's so many different opinions on the best way to mail absentee owners, where it's pretty much a matter of testing to see what works best for you as an individual.

I say that, because I've seen several people on the Internet mention so many different approaches to doing it.

Call me impatient, or maybe just busy, but I don't have the time right now to have casual conversations with a bunch of people hinting at my success, only to "hope" they ask to get involved.

I understand that it's mostly about the mindset, ie, you want to "present them with an opportunity" vs "ask for money," however I was looking for a little guidance on what to say to initially bring up the opportunity to someone I know.

We constantly have deals coming in, however I'd like to at least have a few people that we have formally presented to that have agreed to lend if the deal is right before putting a property under contract with the intention of using private money to fund the deal.

From what I've read on the topic, a "script" one could use would start something like:

"Hey John, I have an opportunity that you may or may not be interested in, but you might have someone in your circle that may. Do you have a few seconds? Great, well we present investors with opportunities to partner with us on real estate deals from time-to-time where the returns are much greater than what is normally available with other vehicles, such as CD's, IRA's, or the stock market. The partnerships are secured by real estate that was purchased at below-market prices to protect the investor. If you're interested in learning more, let's set a time where we can meet up for 15 minutes or so, so I can explain it in more detail. Do you have 15 minutes to sit down with me over the next few days where I can explain it to you?"

From there, if they're interested, I meet with them and go through my powerpoint presentation and explain how the lending opportunity would go, and explain how they'd get their returns and how they're investment would be secured, and so forth.

If they're interested, in that meeting, I'd give them a copy of our business plan, and get an idea of the type of deals they'd like for me to notify them about in the future. If they're unsure, I'd get their permission to "keep in touch" with them about how things are going, in the event that their level of interest changes in the future.

I know there's no "cookie-cutter" way to start the conversation, but I'm the type of person that likes to have a little structure behind what we do.

Am I thinking the right way on this, or not? Please give me your thoughts.

Thanks for your time.

Thanks for the feedback, you kind of reinforced what I was already thinking.

No, I don't have phone numbers for them, but I can look each person up and see what I can come up with.

We purchased a list of people in our area that have acted as private lenders recently, and before I send them our inquiry letters (introducing them to us so that we can perhaps meet for lunch to meet), I have a question...

When sending mailers out to absentee owners of single family residence (to see if they want to sell), I was taught to make the envelope look like a personal invitation to a birthday party or something, to get them to open it.

For a letter to a prospective private lender, though, what approach would is best, relatively speaking?

I was thinking about using a number 10 envelope, with our logo and return address in the return address field (typed), to give off a professional image, and maybe even have their name and address typed as well.

I was thinking that the benefit of the "birthday party"-looking envelope is that it would encourage them to open it, while a business-looking one may not get opened...

BUT, a business-looking envelope makes you look more professional, so I'm a little confused on this one.

I'm leaning towards the professional image, but just wanted to get your insight.

Thanks in advance for your time.