How to find private money for real estate investing: 10 ways to find all the private money you’ll ever need.

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Real Estate Investors:
The best 10 places to find private money lenders for real estate investing, number 10 is my favorite and the only one you’ll ever need.

Indy Anna here to answer…
How do I find private money for real estate investing?
What are the best places to find private money lenders?
If I’m new can I still get private money lenders to give me money?

First of all remember that you do NOT need any money to build your real estate business.

– This class is so that you understand the process and you can help others find private money or so that you can get it yourself and be a sandwich lender where you are the private money lender with funds from others
– I did a few other classes on what private money is and how it is different from hard money so you can check those with the links in the description
– Today we will talk about the 10 best places to find private money lenders but you will only ever need to do number 10, it is the single best way to raise private money and nobody is doing it
– Also remember that when we are in a high market the people with the deals make all the money, but if you are in a correction then the people with the money make all the money because they can do deals. So knowing how/where to find money is a good skill to have.
– Also make sure to check out our EPIC page on finding motivated sellers because by finding/creating deals you will have private money people swamping you

The big secret about private money is that ALL private money is really Fanbase Money:
– You want to build your Fanbase and keep in great touch with them
– The only three things you need to do in this or any other business is make friends, keep in touch with your friends and HELP your friends that is the BigReia.com Magic Triangle
– So you want to have your dialog, “presentation”, Beautiful Conversation, Compliance Curve and Nobody Mountain materials in place to strangers through all Five Crowds Principles. If you don’t know what that means check out our other videos on compliance and business building in the description below.

OKAY already what are the 10 ways to find private money lenders for real estate investing?

1.)  REIA.

Go to your local REIA and ask around and you’ll find or get recommendations on the PML. The LC will stop here, but you should move better and have your Compliance items in place.

2.)  Self Directed IRA Folks.

I can make a separate class on free ways to find them if you want, but my favorite way is to work with financial planners. You can do a lunch for clients who want to use their IRA to invest tax free.

3.)  Country Clubs.

This can be for golf, wine, yachts/boats or any other bs rich-people-stuff. One of my LC investors told me “I tried that and it didn’t work” I went to the same club as he did and told them I could do a complimentary “Night with the author” and sign copies of my book and answer questions about real estate investing strategies. I raised well over 1M in commitments. The LC will always find things that “don’t work”.

4.)  Run Ads for Cash Buyers.

Start with free places like CL and “Free list of properties selling at 50% below appraised value, must have cash!” You can also use the other ads that I went over in my “How to find cash buyers” class.

5.)  County Records Cash Buyer Search.

I did another video about how to search your county records and the deed transfer info to find the name of the person/company when there is no mortgage recorded which usually means it is cash purchase. This an easy way to find the most active investors in your market, the link to that video is in the description below.

6.)  Real Estate Wholesalers.

This is an obvious one but very few people do this correctly. Talk with them get the relationship going and help on a few deals and then get their best recommendations. You could do this ALONE and never need another source for all the private money you’ll (not) need.

7.)  BNI Groups.

Business Networking International is the largest business networkign and business referral organization in the world. I could do a whole video about ways to leverage BNI to do more deals, just let me know if you want that.

8.)  Business Owners.

This is a fav of mine because you start to talk with local business owner you’ll see that they pretty much all want IN on real estate. I’ve talked about doing JVs with local business owners and how crazy profitable it is for you as a real estate in many of my previous classes so you can check them out for more on this.

9.)  Signs for Cash Buyers.

Use headlines like “Emergency sale of $100k house for $50k, must have cash and can close today.” Or “Auction of $300k house, bidding starts at $50k, must have cash to bid”. Check out Azam’s class on how to make 5k/week with signs for more badassery with signs.

Okay now the final one the big, BIG, SUPER DUPER BIG SECRET and best way to find private money lenders is…

10.) Charities, Non Profits and other Volunteer Groups.

This is the coolest and biggest secret to finding private money.  Below is the seven step process we use to raise private money with groups like this:

A.) First volunteer for a few different groups until you find one that you like and that is doing work that you want to help.

B.) Spend a few weeks or months finding out everything there is to know about the group, how they raise money and their donor list.

C.) As an insider say to the money person: “I buy and sell real estate (as they should know) and I was thinking instead of me borrowing money from somebody else if I helped you guys raise the money I could borrow it from the group and you guys would make the money…”

DO NOT “ASK” or close, instead…

D.) Put them on the email CC with your next few deals so that they can see everything. They will see from start to finish how an investor did a deal, closed it, got the private money, sold the deal and paid the money back. They see EVERYTHING exactly as it will go with them if you agree to work with them.

If you aren’t doing deals, stop being an LC and actually FOLLOW along with the amazing resources at BigReia.com.

E.) You will only need to do this once or twice before they are begging you to take their money. Now any time you talk to anybody in that group just have your target email them and forward all those emails, this will be the best “presentation” you’ll ever have because the CFO or financial director has a lot of authority with all those in the group.

F.) Often the PML will not even want to make money they will just want their group to get the money, I even had a woman with $2M in her checking account tell me she want me to use it all and whatever money she would get should go to our special needs group.

G.) Lastly, make sure that you start small and then scale to that group and other affiliated and sister groups because you will never need another source if you do this right. I have over $6M in commitments from one of my groups and over $10M from another, this can be done in less than 30 days. Also this works great for transaction funding as well.

Here are 14 Private Money Legal Forms:
Private Money Contracts and Paperwork.

1.)  Here is a Loan Guarantee Agreement that provides security for a loan you are getting or one that you are getting for somebody else.

2.)  Here is a basic Payment Agreement that outlines payment and balance details. 

3.)  Here is a basic IOU with a “Public Notary” seal so that when it gets notarized it is more official and proof that the parties actually did sign and agree to the terms.  Having a recorded IOU can be used in court but usually more powerful is the ease that it gives a private lender.

4.)  Here is a Family Loan Agreement, if your private lender is family or somebody close you can use this document.  Even if the loan wasn’t that “formal” it can help to use this because it can protect equity in case of death or unexpected lawsuits.

5.)  Here is a Private Loan Extension Agreement, this is for changing an item in the loan like the term or payments.  It is good to have this on file for ANY changes to that you know they are documented and recorded.  

6.)  Here is a Private Loan Agreement, this loan can be for anything as it doesn’t have to for real estate but you can use that as the reason.  This template can be used repeatedly for various kinds of financing and purchases.

7.)  Here is a Personal Loan Agreement, this is often used when one individual borrows from another individual.  Sometimes in private money agreements the lender (person with the money) feels better if you are “on the hook” more so than using a random LLC or other business entity.

8.)  Here is a Promissory Note, this is a basic template that can be used for more than just private money.  This is one person as the borrower agreeing to pay back the lender or person who is provided the money.

9.)  Also you’ll want a Release of Debt, this shows that the debt has been paid-in-full and that all the terms of the private loan have been to the satisfaction of the lender.

10.)  You also want to make sure you have a Release of Personal Guarantee, this removes all burden from the borrower and the private lender agrees that all of the terms of the contract have been met and the personal guaranteed is settled and they are “off the hook”.

Those are some main ones but here are a few extra ones that have been helpful:

11.)  You can use a “Mechanics Lien” to cloud title if you are ever owed money or consideration.  To new private money lenders I sometimes use this as an explanation of how a “first versus a second” mortgage works.

12.)  To file a lien sometimes you need to send and record a notice or a “Notice for the right to file a lien” so you can use a 30 Day Preliminary Lien Notice.

13.)  You also want to make sure that you file and always GET filed (if you are on the other end) the full RELEASE of the Mechanic’s Lien document and record.

14.)  You can use a Mortgage Verification Form for a few purposes that I explain in the video.  One big reason is that it lets your private money lender know the kinds of information that a “normal” loan has and we record ours based on that.  This won’t be an issue with experienced lenders but many of mine are new.

Please let me know if you have any questions and remember I’m building the largest special needs owned private money lending bank in the world so if you have a deal in the Midwest I can fund it. Email me at:  Love (at) BigReia.com.

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list.  Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys you can go to our People page at https://www.BigReia.com/people.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

Go to BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
317-969-5619 (YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

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100 FREE ways to find motivated sellers.