All Forum Posts by: William S

There is very little you can't learn right here on this forum. Even if you have little or no experience. Spend time here. Scroll through all the topics and pick the ones that interest you. This will lead you to more question and answers you can find or simply ask.

Save your money on courses for now and instead invest some time here first

Will

...Also, go to the Private Lending forum. Great info there

Did the same thing a while back and did not get a reponse until my second mailing. Got a few calls after that...

By far, IMO, the best way to approach finding PL is through friends and family. ask people you know if they have friends that have money. Then present your PL presentation to them, offer a finders/referral fee to your friend or family member if you do any business. You have your contacts warm market so there is some credibility before you meet.

Will

yes...correct...meant for as long as I have their money working.

The anualized return of 12% is broken down at a per diem rate.

ex:

100,000 (borrowed) times 12% = 12,000 anualized return

12,000 divided by 365 = $32.88...which is their daily dollar amount return.

That's what I meant.

Some of the PL I have found are very happy with a fixed 12% per diem. If you are focused on establishing yourself in you area, as I wish to do, then make sure to offer everyone the same return..it will only add to your credibility as word will get around eventually. I know I could easily get PL's to agree to a 9-10% return but why be greedy. 12% is an eye opener and imo a comfortable number.. I think that when you offer more than that return, your avg person will become a little skeptical and might think that it's a little shady.

Definitely focus on your avg joe who has money in a cd (You can get a list of people who have cd's, IRA's from a list broker). If they have an IRA, even better because you can refer them to a third party administrator that can shelter that 12% return under a truly self directed IRA. That way their investment (which is actually a loan to you secured by the property being purchased) can grow tax deferred or tax free. The third party administrator works directly with your private lender and sets up an account under their name ( you never touch their money). Then when you are ready to close, your PL can have those funds wired directly to your closing agent (title company or real estate lawyer). Btw, a good third party administrator is Equity Trust. There are others of course. Give these guys a call and ask questions..they are very helpful and use to working with RE investors. They will even send you free info ( brochures..etc) that you can give to your potential PL along with any other info you provide them with (PL packet)

I would not bother with using more experienced investors as private lenders unless you want to pay them a MUCH higher return.

Also, make sure you have at least 3 PL before you get started. You don't want egg on your face and relationships compromised. I lost two deals recently because my PL, who committed to over 500K a few months back backed out at the last minute because he needed his cash reserves for his own business needs which came up.

Hope this helps.

Tyler,

I'm a bit envious...

Just thinking what a great find this forum is for everyone but especially for those of you that are still in your teens, serious and hungry - lol...you are so in the right place. If you take the advice already given about studying, researching this forum... it's a valuable resource. The bull sh*t meter does not have a reading here. Of course your education should not end here...look for a good course that is recommended by the guys here that are actually doing deals. That's it...then continue taking action.That's where the theory of knowledge is clearly trumped by the exponential learning curve of action.

Read this forum everyday..most of your questions can be answered right here by some pretty generous/cool people imo.

I myself just made the switch over last month (to wholesaling) and have seriously acquired more than enough info to get started from here before even purchasing a wholesaling course.

Good luck

The quickest and most economical way to find PL's is to ask any contacts or friends if they know anyone with money! Anyone with money in CD's, IRA's, etc. Make sure to give your contact a presentation of your program so that he is sold on what you have to offer first. Then offer him a finders/referral fee for anyone he refers to you that you actually end up working with/getting a loan from.

The less you contact says to a potential referral the better. He just wants to focus on setting up an appointment for you...that's it!

I'm using this method as we speak..I have an appointment this coming Monday and several more on the latter part of next week.

The most important thing to have in place is a good-informative presentation. Not one of those stiff, robotic and very procedural presentations but something that comes off as relaxed but very informative. Don't come off as begging...never..just be yourself, know your program thoroughly ( I recommend recording it on a cd and listening to until you are sick..lol) and make sure you cover the main bases:

1) What you have to offer
2) How they benefit
3) How their money is secured/ collateralized
4) Get a commitment one way or the other so as not to waste time (to get started, refer you to
others who might be interested or simply part and thank them for their time)

Also, make sure before meeting up with referral that you ask if their is a partner (spouse) involved in making any important decisions,,,if they say yes, make sure the spouse is their as well.

Hope this helps.

I recently had some very good success establishing some end buyers/investors by going to the F/C auction in my county. I was there a full hour or so just watching to see who was bidding. All of these players have cash to invest anyway ( the serious ones). This is what I basically said to each and everyone of them.

''Hi,,my name is___________, I'm a RE investor and I noticed that you're one of the few serious investors here so I wanted to introduce myself. I'm looking for buyers to wholesale any deals I find that I cannot close on myself for whatever reason. I would obviously leave plenty of room for you to profit above any rehabbing cost you may have to do or I won't even bother contacting you.... Would you like me to contact you when I have that inventory?''

Called 2 of them today and got their basic criteria. Will phone or email the others this week.

In the span of about 2 hrs and after approaching 6 investors I got 5 business cards.

Hope this helps.

William

Get someone who is newer and hungrier (RE agent)..period and is not opposed to making several offers. It's a numbers game.

Daniel,

Here's a great article from one of the successful wholesalers here on BP.
I think you will find it very helpful.

http://www.biggerpockets.com/renewsblog/2009/09/10/close-reo-wholesale-deals-part-1-5/