Posted by Brent_IL on February 28, 2005 at 17:55:13:
It helps us to differentiate between Private money and HML. All (o.k., a very high percentage) of HML are funded with private money, but all private money lending is not done by Hard Money Lenders. Folks who spend money on treasuries and bonds and commercial annuities are private lenders.
When you hear a news report that people were scammed or sent their cash to widow?s of deceased Nigerian generals, don?t you wish you had given them the chance to give their money to you first.
A two-step approach to getting funds can make it more digestible for your lenders.
1- At the first sign of real interest in what you do, tell the prospect that you are filled, but you have something coming up that you know they?ll like. If they ask you for a prospectus, you can write one up, or you can leave and go to talk with potential benefactors who don?t know what the word means (my preference).
It?s essential that you know what you are to ask for, e.g., passive partners, first mortgage money, instead of investors.
Talk to the prospect to find out their expectations. Some are pie-in-the-sky. Some folks will swear that a high return is illegal. Some say high ROI?s are also immoral according to something that they heard someone say was in either the verses of the Bible, the suras of the Koran, or covered within the five basic subjects in the Bhagavad-Gita. Frame your discussion about how fractionally more than what they expect was earned by others who were fortunate to affiliate with you. If it?s true that we are all Spiritual brothers and sister, you can elaborate upon the success of your ?brother.? Explore the possibilities of earning more as the length of their commitment increases.
High interest is defined by, and for, pros. There?s 8.00% - 9.00% money to be had it you don?t come off as a slick wheeler-and-dealer.
Go out and look for a deal that will match the prospect?s needs.
2 ? Go back to the closest match and get their money.