Private money lenders look just like everyone else. They aren’t fat cats that are chauffeured from boardroom to boardroom, and they aren’t CEOs of Fortune 500 companies. They are people that have done well in their business or work and have funds available for investments.
How do we best find private money lenders? Lets break down some defining factors for you to target to best zero-in on potential private money lender prospects to solicit.
Factor 1 – Well off
Focus your energy on networking with those people within your sphere that you believe have done well for themselves. They appear to be wealthy but are conservative with their money. You may be aware that they have owned a company for a long time, sold a company they built, held a well-paid position in an organization for a few decades, etc. These people often talk about the investments that they make, especially when you talk about yours.
Factor 2 – What is well off
PMLs that you believe can commit $250-500k to you are the best targets. They have the financial backing to do multiple deals, and having fewer PMLs with larger amounts of money is better than having lots of PMLs with small amounts of money.
Factor 3 – Age
Time should be spent networking with potential PMLs that are in their retirement years. Generally, this means that they are retirement age but not necessarily. Focus on those that are in a stage in life that they want their money to work for them. They are done dealing with the day-to-day and don’t want to spend a bunch of time growing a business or conquering the world. They want to watch their money grow.
Factor 4 – Reserved
High wealth people often have a reserved demeanor. They have worked hard their entire lives to accumulate what they have, and learned patience along the way. There is no need to be flashy and arrogant when you know you can pull up your bank account on your cell phone and see seven or eight digits in front of the period.
The point is, PMLs are everyday people that have simply worked hard, had some wins and some losses and come out on top, and their bank accounts prove it. If you don’t think your sphere contains these types of people then think harder and expand your sphere.
Next time we’ll discuss how to reach out to these private money lender prospects.