All Forum Posts by: William S

Yes..one on ones are the best. Don't pull out your lap top and do a power point. Too formal and stuffy. People want to feel comfortable. If you are talking a to a REIA group or in front of a larger group then thats a little different. But with one on one's, it's Like Kevin said, just have a good talk about what the program is about and how they benefit...and don't beg..

I will add that if you don't believe that what you have to offer (in any field) is absolutely a great opportunity for a potential PL, then they wont think so either. Presentations aside, if they don't buy you because you don't seem credible and know what you are talking about then it doesn't matter what your selling. A PL program is not a hard sell in the first place. You don't have to be "MR. Saleman" but you do need to convey that you believe in your opportunity/service 100% . Someone can tell you to be exited or passionate about what you are doing but unless you believe it yourself or believe in it yourself then you will come off as "salesman". It's like telling you wife her meatloaf is delicious when all the while your trying to stop yourself from gagging. People trust people who either make things happen or they believe can make things happen...that's what you sell.

Emerson once said:

"Self-trust is the first secret of success...the essence of heroism"

Just keep at it...don't let your pop corn start to sizzle in the pan and then turn the heat down ( I've down that a few times). Take massive but efficient action. Pick to ways you will market to PL's and do those two things every day!

What the hell, here's another quote i love, "fortune always favors the bold" - Virgil.

Hope this helps.

Will

Some great stuff here...

I will also add that you should get familiar with real estate cycles and how it applies to today's potential private lender. The number 1 concern they have, if he or she is a potential new private lender, is the current real estate market and how safe it is to invest in any facet of real estate to begin with. That's your job. Once you overcome that concern and build confidence of how its important to invest now, then you can go into your PL program. Once that concern is lifted they can now listen to you with an open mind. Until you do that then its just like trying to drive a car with a muddy windshield.

Yes..it should be specific to a deal you presently have on the table that needs funding. The general overview should be prior in the form of your presentation, how your private lending program works,the benefits, security,equity position (which should not exceed 65% LTV in most markets) and exit strategies. In truth, todays private lender is quite different from today's potential PL. They have the same concerns from the past only now they're MORE concerned. Before you do your presentation you must break your program down into an easily and well thought out story. If they buy your story, your chances of getting a yes doubles IMO.

The docs you are referring to are a 1st and ideally only mortgage on the property you are purchasing, an original note, hazard ins, title ins etc. In the end all the proper docs any bank would receive when they originate a loan collateralized by real estate

The mortgage is the doc which allows the PL to Foreclose in the event that you,as the investor, fails to meet your obligation to pay back the PL.

If explained properly, those docs should suffice. But this is just part of it, your whole presentation has cover the following completely and thoroughly: 1) How PL works from beginning to end 2)Docs securing PL 3) equity position (conservative LTV's) 4) Exit strategies.

But again before you even begin your presentation make sure to overcome the most important area of concern which is the current real estate market and it's cyclical nature and how history repeats itself. They have to feel like they must get in NOW before you even present your presentation.

Hope this helps

Will

HML's obviously has it's uses...

But why end up potentially paying 12-15% plus 4-6 points and have to have some skin in the game when you can educate yourself on how private mortgage lending works ( NOT the same as HML) If you are in RE for the long haul then not learning how PML works and how to find/educate your own lenders is crazy. Besides that's all HML's do. They find someone happy w/ receiving a nice 7-12% return secured by real estate and broker out that lenders money to other RE investors and collect the spread. You can be the one who finds your own PL's for your own investments.

Bottom line with HML you are not in control. With PML you are. The caveat/value for the potential PML is an alternative for secured returns backed by real estate purchased at significant discounts (60-70 LTV's.... and depending on your local market, a quick flip or long term hold - lease/option) as an exit.

Out of all the 1 on 1 presentations I've given, I have only ran into one individual who actually knew what PML was. Once a person understands the program and you present yourself as someone credible then games over.

People have been sitting on the fence and are ready for something new (in their eyes) where they can recoup some of the losses in the last few years.

Educate yourself on this subject, research and find someone/course who can show you it works. It's one of those investments you make in yourself that is WELL worth every penny.

Hope this helps

Kristian,

Are you referring to hard money lenders or individuals who privately lend out their money to investors?... Two totally different avenues btw.

Thank you Mark.

Ffound the answer after a few phone calls... anywhere between 25% and 50% of broker commission. It really depends on what you can work out for yourself.

Thanks guys

...By calling, polite persistence and dilligent follow up. All the contacts i made, except for 1 of the 18 (which resulted from 250 phone to different banks in about 3 months) came after a 4th or 5th follow up message, email or verbal message left with an assistant. Do what others won't do...period. Everyone and their mother is looking for the short cut. If you want a short contact one of these daisy chain
bandits.
And keep in mind that EVERYONE is trying to make these same calls while offering BPO and maintenance services. Try other avenues.such as local land lords, mortgage companies and out of town owners. Hedge funds are also an untapped market. They buy in bulk and usually flip a good 70% to the secondary market or smaller investors immediately. From their they keep some for their own portfolio and wind up selling a good portion of those as well.... but you have to know who to talk to and how to present yourself. Be prepared. It won't just be like, "hi, I would would like the opportunity to list your REO's in X town and State". They definitely need to know that you can sell quickly and are qualified to do so. This approach is not for the meek...i promise you but can be very profitable if you get your foot in the door. It helps to have some lingo down to show some credibility. I also recommend getting in good with a well known and experienced reo broker in your town. That way you can use their credibility in all your efforts

I'm presently getting my RE lic to do just that and work with a top REO RE broker in my city. In the past, in the process of forming relationships with several banks to broker NPN's and REO in bulk both resi and commercial, I found recently that their was a very nice niche where I could use my knowledge to go after listings as well.

Hope this helps a bit.

Will

Hi all,

Had a a situation while networking with a RE broker (one of the top guys down here..very efficient, a bulldog!) the other day. I had explained that i had several established contacts at banks across the country and many in S Florida(mitigation, special assets dept, etc..). let him know that I was pretty efficient with making these contacts/relationships and was trying to find a happy medium on pricing expectations between buyer and seller. Since i was focusing on wholesaling these deals he told me that I should get my RE lic and get REO listings instead (which btw, had been offered to me before directly from banks in the process of looking for pools of Non Perf. Notes and REO's).I know BPO's are usually the route most agents will take in the hopes of landing that listing but that's obviously not the only way. Anyway, I think there is a huge niche here for me

So I was just curious as to what i could expect in the form commission.

Congrats Josh!..That's what you get when you meet the universe half way...lol. Thanks to all of you on BP that give so unselfishly, making this place such a sick (VALUABLE) resource.

Will