Previously we have discussed where to start your search for a private money lender (PML) and what they might look like. Now that you have a list of PML prospects what do you do?
What is the best way to market to them and let them know about you and your business? Take them to lunch.
Friends and family connect and enjoy fellowship over meals. Business relationships are no different. The key word here is – relationships. Acquiring private money is based on relationships more so than return percentages. Taking your prospective Private Money Lender to lunch and getting to know them as they get to know you, gives you the permission to speak to them about your business and how you can help each other.
Inviting private money lender prospects to lunch is an incredibly effective and inexpensive way to acquire money, and you don’t have to worry about other forms of marketing and following SEC rules for that marketing. Lunch gives you the opportunity to casually talk about what you are doing and how you work with private lenders. This is a free flowing conversation, not a hard sale.
Be sure to bring your presentation manual to go through with them or let them go through on their own and take home when they leave. Give examples of some deals you’ve done with various exit strategies. Tell them what you are looking for in a private lender and the loans you need.
Before your lunch comes to a close be sure to ask them what type of investment interests them most. Long-term vs short-term, dollar amount, etc… Find out their objectives for the money they want to invest. Ask if they might be interested in investing with you. You’ll not likely get a firm answer but that is OK.
“If they show any interest at all, send them the next deal you come across that you think would fit their objectives and see what they say.”
This seems so simple to some investors that they ignore it. It is simple. Doing all the simple things will result in a positive outcome. The secrets to success are most often the simplest of activities. The problem is that so few people do them. Take my word for it, invite Private Money Lender prospects to lunch as often as possible and you will form relationships and raise private money.