How to Market to Private Money Leads

By Susan Lassiter-Lyons | Real Estate

I always say that there are 3 “buckets” of potential private money leads…

Bucket #1: The people who know you love you and trust you. Your friends/family/acquaintances

Bucket #2: The people who are already investing in real estate. Like flippers or developers who have cash they'd like to park.

Bucket #3: The people who are already making private loans to real estate investors.

This post will show you how to market to bucket #3.

Maybe you've sent out a mailer to a private money leads list.

Or maybe you’re at a swanky party when the potential private money lead you’ve had your eye for weeks appears out of nowhere, like a knight in shining armor.

He strolls up and asks what you do for a living.

What do you do? More importantly, how do you get him to invest in your deal? 

Today, I am giving away secrets.

Secrets to an extremely important module of a bigger strategy covered in my Instant Private Money course that I invite you to explore.

But, these secrets are my gift to you.

I am giving you this personal strategy on how to market to private money leads because I want you to use it and run with it – just like I used it to raise over 26 million dollars.

Yes, 26 million dollars.

You see, the more successful we are together in this fascinating world of real estate investment, the more successful we can be as individuals and money makers.

But, Susan, aren’t you afraid I’ll encroach on your piece of the pie?

Not at all.

Trust me when I say there is more than enough private investment money to go around.

Screen Shot 2016-02-01 at 1.33.08 PM

The trick is to attract it.

Why Private Money?

This infographic from our friends at FortuneBuilders basically sums it up.

(Except the rates they are paying are WAAAYYYYY too high. Check out my Getting the Money program to see how we're getting rates from private lenders as low as 3.55%)

Ok… so back to attracting it. The trick is to…

Embrace Your Value Statement

It’s not just about what you do, but why.

When someone asks what you do as a real estate investor, what do you say?

  • That you invest in properties because it’s exciting.
  • That you turn over real estate to pay your bills.
  • That you sell homes with a team of folks because it’s a smart investment strategy.

These statements indicate a few of the beginning end results of what you do, but they barely scratch the surface of explaining your what and why in a concise and intriguing manner that would prompt someone to say.

“That sounds cool. How do I get in on the action?”

When you get a response like that, you’ve uncovered your value statement.

Here is the value statement algorithm:

I ______ so that _______.

Now, think about how to fill in those blanks.

Keep this in mind…

A value statement offers a way of adding worth to your relationships. It encompass all that matters to your business in a way that conveys purpose and opportunity to others.

Here is my value statement:

“I put together lucrative real estate deals so that my investment partners can make safe consistent profits,” said confident Susan at the party to the private money lead she’s been hoping to meet for weeks.

Immediately Susan can tell her big whale lead is wondering:

  • Lucrative you say?
  • Investment partners?
  • Safe and consistent?
  • How do you do that?
  • How can I get in on it?

(Susan will now stop referring to herself in the 3rd person – lol)

Projecting these images into the minds of individuals helps build relationships and creates your private lender list. These relationships are the back bone to your real estate investment business.

When we whittle down to the bare necessities of this business –

it’s all about relationship building.

Encompassing your why in your value statement is imperative in building these relationships. It not only establishes you as a good and productive human being, but a leader in the real estate investment industry.

What I mean by “encompassing your why’ circles back to the idea that there is more than enough investment money to go around for all of us in the industry.

So, if there is more than enough, what should we, as real estate investors, do with that?

Well, here is a deeper look at my why…

I am in the real estate investment industry to put together lucrative deals so myself and my investment partners can make safe consistent profits, but I feel good about my work because it provides for my family and:

  • Contributes to neighborhood revitalization.
  • Helps create affordable housing.

I like to think of myself as a small business with a big reach, making giant impacts on families and communities.

These factors are important aspects of my “why,” and have led to the development and completion of a personal five-year mission to help my students raise over $100 million in private investment capital.

And, I am not stopping.

My new goal is to help real estate investors raise one billion dollars in private investment capital. Are you with me?

Once you’ve nailed your value statement, it's time to take it for a spin.

Marketing to Strangers (or your new friend from the party)

With your value statement big, strong, and bold, the main way we build our private lender leads list in Bucket #3 specifically is to buy them.

You can buy leads of active private lenders in any market across the country from online sources such as ListSource, Listability or you can even download them from a real estate investing software such as FreedomSoft.

The best way to market to these leads is via direct mail.

Direct Mail

Here is how:

  • Send a postcard that is in direct reference to the property the private lender just loaned on to grab their attention.
  • In the post card, offer real value not just an investment pitch.
  • First, share a little bit about you and your business.
  • Next, let him know you have access to a large network of people who are looking for the exact service he provides

Here's an Example

postcard

Feel free to copy and paste the text!

Your Private Money Loan On {Insert Property Address} Made Me Realize We Should Talk.

My name is Susan and I actively buy and rehab properties in Denver. Since you are already an active Private Lender, I thought we should talk for a few important reasons.

FIRST. I have more than 700 units across the country and here’s a little bit about my properties and partners:

www.MyWebsite.com

SECOND. I have a large list of experienced investors that pay people like you up to 10 percent for secured real estate loans to buy, renovate and sell distressed properties. I am not a mortgage or real estate broker so I’m not trying to get fees by getting in the middle.

I am writing this postcard in hopes that we can connect. THIRD. I’d like to close more deals and know a conversation between us could be good. And, I would like to connect you, at no cost or obligation, to my list of investors so you can check out and maybe loan on more deals.

Send me a direct email to susan@mywebsite.com. Or, for more information, you can call my cell at XXX-XXX-XXXX. If I don’t pick up, please leave a brief message and I’ll call you back soon.

Tips

  • Be sure to include the address of the property they loaned on in your direct mail piece – this is a sure fire way to grab their attention. This will be included in the info you get on the lead from ListSource, etc.

They will wonder…

How do they know this????

The results of your due diligence will…

Give private lenders specific reasons to partner with you. You can amaze them further by providing links to websites for your investments and enticing access to your private list of investors.

  • Make sure you include your email and cellphone number so private money lenders can actually talk to you. And, give the postcard a sense of urgency on the front because IT IS URGENT.

The conversion on this thing is HOT!

Targeted Direct Mail Works!

Take a look at this video from PitneyBowes with some great stats…

The Follow-up

Your whale private money lead is going to contact you. A phone call, email, something.

(If they don't on the first try… mail, mail again! The average direct mail response rate is 1-3% but I have gotten as high as 20% response on this postcard by mailing the lead multiple times.)

Now, when they do contact you what do you do? Just read this: (Yes, I am that confident it will work)

“Hi, I wanted to follow-up with you. I know we chatted briefly about the investment opportunities our company provides and I would like to get together so I can tell you more about the types of deals we do.”

Now, schedule a time to make your amazing, closer of all closers, presentation. If you don’t have one of these, or need help – I’ve got your back in my full Getting the Money Program.

Strangers No More

Contrary to popular belief, the goal of the meeting isn't just to pitch your deal. My Getting the Money presentation template is as much about you and your company as it is a specific deal.

The goal is to build a relationship.

If you get immediate interest in a deal – great. If not, great!

Establish connections on social media, add them to your email blasts and get their phone number for sure.

Your focus on relationship building provides instant credibility with potential investors because it shows how involved you are in your business and the real estate investment industry.

They are seeing your blog, your social posts, your projects, and passions.

Your new relationship also provides them access to your sphere of influence with lends additional props to your credibility and benefits everyone involved.

The Websites

Your direct mailing postcard should reference a website. This is crucial in the marketing of your properties and your business.

Now, if you don’t have a marketing team, background, or you are not all that technically savvy, be not afraid, my friend!

There are many platforms available that offer quick and easy solutions to create websites for you with just a few clicks of your mouse.

The BEST real estate investing websites are from our friends at OnCarrot.

Here's my OnCarrot demo website. See how GREAT it looks?

Screen Shot 2016-02-01 at 10.24.50 AM

The theme is beautiful and this is all template – you just fill in a few blanks and OnCarrot does the rest.

Other options are…

LeadPropeller.com
10MinutePages.com
LeadPages.com
InvestorPro.com
FreedomSoft.com 

Meetups

Local networking sites like Meetup.com provide invaluable ways to connect with private money lenders. For less than $100 a year, you can start a group to amass private money lenders and you can organize event for them and with them. You can also do this on Facebook and other social media platforms.

Action Plan for Marketing to Private Lenders

Ok, now it’s time to put this all into action and work with the private lenders to create safe and consistent profits for everyone. Here are the specific steps you should take while you wait out your 45 days until it’s time to make more money:

  • Start your Private Lender Marketing Campaign
  • Set up your website(s)
  • Set up or update your social media platforms. If you need help with this, be sure to read my complete blog series on Social Media for Real Estate Investors
  • Get a private lender leads list from the public records, ListSource, Listability or FreedomSoft.
  • Send post cards to private lenders
  • Email private lenders
  • Call private lenders
  • Party with private lenders

Bottom line

It’s all in how you start the process – That value statement. It’s your first impression and it kicks off how you market yourself to private money lenders.

It seems so simple, but it’s the simple beauty of it that forms the relationships that leads to collaboration, that results in increased revenues for all.

Like I said, there is more than enough to go around!

And, I am more than happy to share all of my secrets with you!

Check out my Instant Private Money program that delivers five proven ways to get access to real live, active private lenders all across the US with millions of dollars waiting to fund your deals.

Use the cash to fund any deal, anywhere, any time. You’ll learn the ins and outs of working with private lenders lists, peer to peer lending sites, crowdfunding sites and more.

Check out some of the results my students have gotten using my private money training here.

Let’s work together, with so many others, to raise one billion dollars!

And, always…

Have fun. Create value.

 

Leave a Comment:

(6) comments

Nitin handa

Hi susan
Thanks for this. Very informative.
What about SEC side of this? Can we send the postcards to unknown people from the list without being SEC registered?

Reply
    Susan Lassiter-Lyons

    It depends. If they are accredited yes. If they are in the ‘business’ of lending yes.

    Reply
Sumara

Thank you so much Susan this extremely helpful.

Reply
    Susan Lassiter-Lyons

    Glad to hear that, Sumara!

    Reply
David Owens

This is very helpful Thanks Susan
Trying to do a deal without knowing where the funding is going to come from is like working backwards.

Reply
    Susan Lassiter-Lyons

    Agreed! It’s also makes for a wimpy negotiator.

    Reply
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