Larry Goins talks with us about how to secure a private money lender.
Listen to Larry’s step-by-step process of getting ahold of a private money lender who already knows the business.
Announcer: Welcome back to the Flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Larry: Hey, this is Larry Goins, and welcome back to another episode of the REI Classroom. I’m really excited you’re here watching this, and I’m really excited about what I have to share with you today. This is going to be a great, great training because I’m going to show you how to find all the private money you will ever, ever need.
Announcer: This REI Classroom real estate lesson is sponsored by uglyopportunities.com.
Larry: Okay, it’s very, very simple. You don’t have to do seminars. You don’t have to hold luncheons or anything like that. All you need to do is this. And I want you to grab a pen and paper and write this down because it’s going to be very, very important and detail specific. Okay?
So first thing you need to do is you need to find somebody that’s already using private money. You could go to your local REIA group. You could search at the register of deeds at the county recorder’s office and find out people who are using self-directed retirement accounts or whatever. But you need to find somebody that’s already using private money.
For example, say, you go to your local REIA group, and you’re networking with all the people, and you find out Bob, who owns Bob Buys Houses LLC, is using private money. Now, do you think Bob is going to give you the name of his private money lender? Of course he’s not, okay? But you’re talking to Bob, and you’re talking about buying and selling properties, and you get his business card, and you see his business card says “Bob Buys Houses LLC.”
All you have to do is go down to the register of deeds, or you can probably look it up online, as most of them are already online. And you look up in the county where he’s buying properties, you look up “Bob Buys Houses LLC,” and then you look for any properties that he’s purchased. And in the property records, you’re going to look for the deed of trust or the mortgage, and find out who has a mortgage on his property. Okay? Once you find that out, there is your private lender.
Now, it might be XYZ Private Lending LLC, all right? But whoever that is, they are Bob’s private lender. So now all you have to do is go to the Secretary of State and look up “XYZ Private Lending” and find out who the registered agent is and find out their address. And it may even have the phone number, depending on what state it’s in.
And then you look up, and if you can call them, you call them. If you can’t, if you have to mail them, you just simply put together a letter or a postcard, and you say something as simple as this: something along the lines of “I noticed that you were loaning Bob, over at Bob Buys Houses LLC, some private money. I do the same thing Bob does. If you would like to increase your portfolio, if you’re looking for some other investors to lend to, I may have some openings available, as I’m looking at growing my business beyond what private money I already have set up.”
So try that simple, little technique and strategy, and you don’t have to hold seminars or luncheons or anything. And the best part is you don’t even have to train the private lender. They’re already doing private lending, so they already know exactly what to do and how to do it.
So I’m Larry Goins. I hope you really enjoyed this tip. Go out there and get some private money.
Announcer: HomeVestors, the We Buy Ugly Houses folks, is a franchise system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real investing system in existence, whether you’re a pro looking to take your business to the next level or whether you have no experience at all but a burning passion to be successful in real estate investing, please visit flipnerd.com/ugly to learn more.
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