PROVEN POSTCARD THAT RAISED $1.2M
(Generates in FlipLogic! Let Private Lenders know about you!)
Private Lenders are everywhere and they are easy to find if you know where to look. You can use FlipLogic to instantly search private money lenders. Private Money Lenders don’t have the high cost like hard money or the harsh restrictions and requirements like banks. They want to lend their money securely in a first lien position usually for a 5%-10% return backed by a undervalued piece of real estate. It varies on the individual’s preference and the details of the deal.
(Generates in FlipLogic. Easily Share With Private Lenders To Show How Much Profit is in it For Them.)
I recently had a buyer fall out of a transaction on a Sunday and I needed $1.2m Monday morning before the 2pm cutoff to close that afternoon. I called Charles, one of my private lenders who connected with me from a direct mail campaign I mailed to. I should mention after our very 1st call from my direct mail campaign we met up for a cup of coffee to connect and discuss his goals and mine. We left it at… when I have an available deal I’ll email it his way to review. So, that day had arrived and I called and said, “Charles, its Ryan Kirk from 1-888-CASH-OFFER. Could you check your email? I just sent you the details on a deal I know will make money and I’d like you to lend me the money on it.
- Charles said, how much do you need?
- $1.2m, I said.
- When do you need it by, he said.
- Today, I muttered.
- Well I have it, he told me. What are the terms, he said.
- It’s 100% of the purchase price, but we’re at a low LTV. I’m going to need it for 90 days or less and we should resale for $100k-$300k more. I will add you on title as a 50/50 Partner and we’ll do a 0% and NO payments note and deed of trust, but you need to review it and we need to move on it today.
- Give me 30 minutes, he said.
- Charles gave me his approval and I sent over the lenders instructions, addendum, note, deed of trust, and we closed that afternoon! YES!!!!
You can leverage my credibility and brand. Simply setup a direct mail campaign to a private lender list in FlipLogic. Choose a proven template like the one above and drive lenders to call, email, or add themselves to your email list on your website. A great follow-up you can do is to pick up the phone and call. A typical direct mail campaign gets a 1%-3% conversion. Increase that conversion with a follow-up call after the postcard campaign was sent to introduce yourself and build rapport, so you can add them to your lender list for future email blasts. Don’t be afraid to call them. You are bringing them deals!
What about SEC regulations and disclosures? It’s crucial to stay SEC compliant and you'll have to check your state’s local SEC rules to verify what exemptions there are and what disclosures are needed. In short, here is how I understand the rules in California and I’m not a licensed attorney, so you need to verify this and not take it as legal advice. If you are making initial contact with a lender you have never met you may only solicit with the intent to educate and not to sell or offer securities. By doing so, you are not violating the SEC rules of selling or soliciting securities without a license. After you have connected with the person and created a relationship over 2-3 contacts/touches/calls/meetings or more that you may present them an opportunity. I should note I have always used a Title Company, Escrow Company or Attorney to receive and handle the funds and closing documents.
Hope this helps.