Private Money on Demand



NOTES: The sample letter below is designed so you’re not sending out a “general solicitation” to potential private lenders. As we all know, if you send out a marketing piece (a website included) that “solicits” a person that you don’t know, to be your private lender… the SEC looks at that as a general solicitation and look down on it heavily.

So, if you have no prior relationship with a potential private lender… you don’t want to come out talking about your private lending program, asking them to be your private lender, sending a deal by them, etc. Your first contacts with a person who you don’t have a prior relationship with (some attorneys as a rough rule define a prior relationship as that you’ve had at least 3-5 contacts with them and/or have known them for a month or so… but check with your own attorney for their advice for your specific state) should be a contact that doesn’t address your private lending program at all.

That first contact ideally is a contact just to “get to know them” or to send them a marketing piece that offers them a free educational report/video/etc. on a topic… such as “How To Use Your IRA To Invest In Real Estate” or “10 Questions You Should Ask Before You Consider Private Lending”… then just give them the content once they land on your website and insert their name and email address.

If you go the free report route… once they request their free report you can put them in an email autoresponder sequence (we use a service called as our email autoresponder service) that sends them more education and information on the real estate market, private lending in general, maybe some credibility builders about your company… and over time guide them to contact you about potentially investing with you.

Anyhow, we feel a great way to go about it is to simply send a letter like the one below that just lets them know you’re a local investor and saw they are too… and you love to connect with other like minded people in town. See if you can meet up for coffee to talk shop about the local real estate market… and just build a true and genuine relationship with them before you come out firing about your private lending program.

As always, we are not attorneys and THIS IS NOT LEGAL ADVICE, nor should it be construed as so. This is just educational and informational. So, we always recommend that you hire a good SEC attorney for a few hours of their time to advise you on any specific exemptions, registrations, and/or actions you need to take in your specific state for your specific business… there are so many business models and different state guidelines that its impossible and irresponsible for us to try to say this technique is a one-size fits all solution.

With the PMOD technique (or any private money getting technique) its always best to think of creating a relationship FIRST… and asking them to be a private lender second (and frankly, its much more effective when you go that route as well).

Jane Doe

Addy

RE: I’d love to connect for a cup of coffee sometime :-)

Hi [name of investor],

I hope your week has gone great!

I noticed last week that you’ve been active in the local [name of city] real estate market and have worked with some real estate investors around town on some projects… and I just wanted to connect with you because I love getting to know other investors in the area.

Its always great to “talk shop” and share insight on the market. As I’m sure you’ve found out too… you can never know too many people here in [your town] when it comes to our little world of real estate investing.

I’d love to grab a cup of coffee (or tea) with you sometime next week or the week after just to connect and pick each others brains over coffee on the real estate market here in [your town]. This year has actually been a really interesting (in a good way) year for our real estate investing firm… and a big part of that growth is the great network of people in the real estate market that I’ve met over the last year here in town… which has been really fun and fulfilling.

Here’s my cell #: [enter your cell number] and email [enter email].

Let me know when we can get together for a quick coffee. Just ring my cell or shoot me an email when you get a chance.

I’m an open book… and truly am just out to meet other like-minded investors in town. I’ve just found that the more I share, get to know, and help other investors the more fun and profitable the real estate business is :-)

Have a great week and I look forward to connecting with you!

[signature here]

- [your name]

PS- We’re always looking for new great properties to buy, so if you know any real estate investors who have good deals to sell… (or if you’re looking for some great investment properties to buy we wholesale several great properties every couple months) I’d love to chat w/ you about that at coffee. Looking forward to connecting!

[your company name and info]

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