September 2, 2014 in Podcasts
Today’s podcast may be one of the most important shows you will ever listen to. My guest today is private money expert Susan Lassiter Lyons from The Investor Insights, and the topic for today’s show is “attracting private money partners”.
The ability to attract private money partners; to raise private money for your real estate investing business, is one skill that has the potential to make your business grow beyond your wildest dreams. Not mastering this skill as you become a seasoned investor may also cause your business to stall or even die a slow death once you reach a certain point.
In the past most folks would start out using traditional financing for their real estate projects. Traditional financing is harder to get today, and in almost all cases the time will come when those financing sources will dry up. You will lose the ability to add more properties to your portfolio through traditional financing. That is why it is so important to learn how to locate and work with private money partners.
Here are a couple of core concepts Susan would like you to understand. First of all, you need to think of these folks as “partners” rather than lenders. They are investing in you in most cases based on your reputation. Sure they are investing in your business; in a property; but how they view you will play a huge part in their decision when deciding whether or not to write you a big check.
Secondly, their values and ethics have to be congruent with yours. You are going into business with these folks so they darn well better have the same core values.
I hope you will pay close attention to what Susan has to say about the “right ways” to attract private money partners.
Get ready to take some notes on this podcast. Here are a few of the things we covered:
- How Susan got started investing in real estate (she has a great story)
- What her very first investing strategy was
- Moving into her next strategy which was pretty much risk free
- The point she realized she was going to need to raise private money
- Portfolio lenders; what are they? Where do you find them?
- Her first attempt at raising private money, and what that deal looked like
- Where’s the first place you should look for private money?
- The “3 buckets” when looking for private money
- The right way to attract a private money partner
- Making the mistake of “prequalifying” people
- The importance of being able to convey to folks quickly and clearly what you do; your “value statement”
- Whether or not you should do a formal presentation for potential private money partners
- The importance of deciding if any potential partner is a “fit for you” and that process; why you should be interviewing them too
- The logistics of meeting these potential partners if you don’t have an actual office
- The advantages of not meeting in an office
- Tips for newbies on “saddling up with someone else’s experience” when raising private money
- Tips for building your credibility even if you are brand spanking new
- What interest rate you should expect to pay a private money partner
- Typical terms for private money loans; structuring both short term and long term loans
- Syndication opportunities
Susan had some great final tips for folks that are brand new to attracting private money partners for their real estate investing business so be sure to listen all the way to the end of the show.
You Can Listen to the Podcast Here
Part 01 - Download This Episode
Part 02 - Download This Episode
If you prefer you can listen or download directly from iTunes. You can to that by Clicking Here….
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Susan has awesome blog you can find here called “The Investor Insights”. Be sure to head on over there and check it out.
Susan is the author of Flipping Fortune and Mortgage Secrets for Real Estate Investors, and she is the creator of the very popular blog The Investor Insights. Susan got her start investing in tax liens, but has been a lifelong entrepreneur whose dedication and hard work have helped her grow a 7 figure business. She is a coach and a mentor, and everyone that knows Susan knows that she loves teaching.
She has raised over 26 million dollars in private money to fund hundreds of real estate deals since she began investing in 1994. Susan owned and operated a successful mortgage company that specialized in residential, commercial and hard money financing for real estate investors which makes her uniquely qualified as an expert on attracting private money partners.
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