Foreclosure Secrets #1 - Continued - Private Investors
“You mean to tell me that somebody would literally write me a check so I can buy real estate?”
Yeah, Sure!
That is exactly what went through my mind, when Nora was hounding me three years ago, as usual to go out and get some private money.
As usual, he was right and I was wrong.
Let me tell you, there is an enormous sense of relief when you know you can go and buy a very profitable piece of real estate without calling any lender, going through hoops, being nervous about them slashing the appraisal to tiny little pieces.
But raising private money has nothing to do with real estate at all - and it has everything to do with one of my favorite word - relationship (the other two are leverage and momentum).
Understand this concept and money will flow into your bank accounts - pretty much more than you need. I had to literally shut my web site down because we had it listed in Google and people kept stumbling upon it and calling and asking us how can they invest with us. Some of them were not too happy about being turned down but the reality was that I did not needed the money anymore.
From zero to turning down private money - was done in exactly 16 months.
Here is the secret about raising private money - the “collateral” that the private investors are interested in has nothing to do with real estate but it has everything to do with “you”. Private money seeks individuals who possesses ambition, integrity and a good business sense. All the checks that I have gotten were written out to me and not the house they bought.
The first thing is to understand about private money is - “credibility” - it has nothing to do with which school you went to, where do you work right now and how much did you made last year.
A private investors wants and deserves to know - what the heck makes “you” qualified enough to invest in real estate?
So give them the proof.
One of the things that I think is very important in doing real estate is and I talked about in detail during the October 16th training workshop (hey did you see how I got cornered after the workshop - i was in the hotel lobby till 8:00pm) is “sequence”.
Here it how it works - if you have never done real estate before and you are about do your first deal - it is hard to convince a private investor to invest money with you - if when you possess a personal relationships with them.
Here is a hint : parents and in-laws are the worse people in the planet to ask money from. They look at you and remember the misadventures of your youth (hey we all have them).
So my solution to this is pretty simple -
1. Go and get hard money and do at least 2 deals.
2. Document everything in obsessive details - copy of HUD-1 statement when you bought the property, copy of your cashier check you took to closing to further prove that you actually closed on the property, before, middle and after the renovation pictures, pictures of the finished property (outside and inside).
3. HUD-1 when you sold the house, with a xerox of the checks especially what you made on the house.
4. Spreadsheet of your expenses with timeline showing week by week what go done and how it was fixed.
5. You standing in front of the house - grinning ear to ear with the buyer of your house.
This is your Instant Credibility Kit - punched three holes and put together in a $2 folder.
It can get you as much as money as you want without you saying one word.
You need to start building one - as soon as possible.
PS: some people have emailed me as asked for a copy of my credibility kit - i am not looking for any more private investors. I already have enough investors in my group to fund pretty much everything I come across. But thanks for the vote of confidence.
If you do want a copy to see a sample, it is part of the new video / audio / web program that we are putting together. And i will post details here when it becomes available.
I will however, been given permission by Gold Plus member Mike Lawandaski to post his Powerpoint Presentation on here. I am just waiting for him to put a copy of his profit check as the last slide in there.
Mike did a great job doing that presentation. And i promise you that you will be astonished at the before and after transformation not to mention his “first deal” check.