After raising capital for decades, my mentor came to some conclusions regarding private money.
The first is that 99% of all private lenders will fall into 3 categories, (the 1% is set aside for the anomaly like lottery winners or inheritances) those 3 categories are Business Owners, Licensed Professionals, and Real Estate Professionals.
If you look at private lenders you've worked with in the past, check out their pedigree and I'm sure you'll come to agree with him.
1) Business Owners: why biz owners? Because, they are a unique breed...entrepreneurs, thus more likely to think outside of the box. Also, they have no one to contribute to their retirements. For this reason, business owners are more likely to have Individual Retirement Accounts, which can be converted to a self directed IRA.
2) Licensed Professionals: These are the doctors, lawyers, engineers, etc... Based on their higher education alone, they are more likely to realize that they need to diversify their investments and retirement funds. Again, more likely to have an IRA or be open to opening one up.
3) Real Estate Professionals: These include RE brokers and Realtors, mortgage professionals, surveyors, appraisers, contractors, and of course investors, etc.
Why them? Well, they also fall into the thought processes of the first two groups, with the added benefit that they already know the power of real estate.
Here is a quick nugget for you under this category. Mobile home park owners, they make awesome as private lenders, and he has converted quite a few of them into personal backers.
A: they understand the power of RE
B: they understand cashflow
C: they many times have used owner financing/ creative financing, so private lending is not far out of their wheelhouse.
I am so excited about the next video I'll record for you. In it, I will describe the 2 questions that you absolutely must ask your seller after you’ve closed your deal. (Hint: 90% do not ask these questions and end up leaving millions on the table.) Also, we are getting closer by the day to our big announcement, so stay tuned. You will not regret it!
Be sure you opt in to www.disruptors.com/pivatemoney if you want the latest!