Posted by chet on February 13, 2005 at 24:13:49:
6-8*12 is 72%-96% per annum. If that isn’t hard money what is?
calc you late these out into APRs and see where your at.
What’s wrong w/ equity participation?
Ad for Private Investors - What would YOURS say? - Posted by IB (NJ)
Posted by IB (NJ) on February 09, 2005 at 08:50:45:
Hello everyone. I’m looking to advertise in this weekend?s paper for an Investor/partner willing to put up private funds for my small commercial rehab projects. What would your ad say if you were looking for the same thing?
I?m thinking of something like this:
“Private Investor needed to fund small commercial renovation projects for experienced and fulltime Real Estate Investor with good credit. $250,000 ? 1 mil. required. No hard money lenders please. Call 333-444-5555”
Your thoughts? Should the ‘no hard money lenders’ tag be left out? I don’t want to work with anyone who charges over 11%. Thanks in advance.
Re: Ad for Private Investors - Posted by ray@lcorn
Posted by ray@lcorn on February 10, 2005 at 09:03:53:
IB,
I think your ad focuses on your needs rather than the investor’s needs.
I’d be more likely to respond to an ad that offered a beneficial proposition, such as; above market returns; investment secured by real estate; no management responsibilities; short-term or long-term; tax benefits; etc. I would emphasize the facets that solve the readers’ concerns–above all, that the investment is more secure than alternatives.
I also would avoid using the word “no” in any context… plants a negative tone to every reader, and most have no idea what “hard money lender” is anyway. And why exclude their call? The purpose of the ad is to get a conversation started with people who have money to invest, then it makes sense to cast a wide net. I always chuckle when I see FSBO ads that say “No Brokers”… that excludes the very people who are in daily contact with buyers and comprise the bulk of those who scan the ads everyday. With two words the ad eliminates 90% of the potential audience.
A deal is made when both sides can find a mutually acceptable proposition, terms are always negotiable, and you can’t get to the closing table without starting the conversation.
My goal would be to make the phone ring, then cull the prospects. Focus on the benefits to the investor and solve their problem (low market returns, tax liabilities, uncertainty, etc.), and do it in a way that compels the reader to call (or use a web page link) for more information.
ray
Re: Ad for Private Investors - Posted by IB (NJ)
Posted by IB (NJ) on February 10, 2005 at 13:06:44:
Ray I re-typed the ad. Your thoughts?
"“Private Investor needed to fund small
commercial and residential renovation projects.
Experienced and fulltime Real Estate Investor
with good credit requires $250,000 ? 1 mil. Above
market returns. Secured by 1st mortgage.
Call 333-444-5555”
Also, I was thinking of giving 6-8% in mothly int. only payments plus up to 4 pts. at closing of loan. Is this reasonable?
Thanks Ray. Excellent points! (nt) - Posted by IB (NJ)
Posted by IB (NJ) on February 10, 2005 at 12:54:07:
nt