Private lenders can sometimes be tough to find… Since you’re not legally allowed to advertise for investment.
Fortunately, we’ve made it a little simpler for ya. 🙂
A while ago we made one simple change that helped us to easily build a list of private lenders from our Cash Buyer site while staying in compliance with SEC regulations.
This post will tell you all about it… and how to put it to work for your business right away.
In this post, we’ll explain the Dead Simple (yet staggeringly genius) Tweak that helped us to identify folks who were willing to lend money secured by real estate.
First, as you probably know… there are a ton of laws about investment that vary from state to state, and definitely some very serious ones from the SEC (aka the Feds). We’re not lawyers, financial advisors or accountants, so don’t take this as anything other than some good ol’ fashioned marketing info.
But even without being folks with fancy degrees, we do know a few things about finding private money.
It’s really important to remember:
1) you can’t publicly solicit investment, and
2) you should never raise capital for your business without a great attorney guiding the process.
This can be really frustrating, especially if you’re just getting started.
However, you can offer investment properties up for sale, and you can privately ask folks if they’re interested in lending you money secured by real estate.
There is a huge difference between selling securities (shares of a company) and a loan secured by real estate.
The strategy that we’ve baked into our InvestorCarrot sites will help you find investors who are willing to loan money secured by real estate. In fact, it’s part of the 2-Step Opt-In Process we discussed a few weeks ago (the one that helps improve conversions by 46%).
In case you don’t remember, a Cash Buyer will sign up for an offer, usually to get access to Discounted Properties for Sale.
On the first step of the opt-in process, the buyer just enter his/her name and email address (click here to see the Anatomy of a Cash Buyer Site Converting at 39.27%), then gets taken to Step 2.
The second step of the opt-in process is where the magic happens.
Check it out:
Adding that simple question to the 2nd step of the opt-in process helps us to identify the folks who are willing to loan money secured by real estate when they’re signing up on this private form.
Once we added the question “Are you willing to LEND your cash to other investors to get great returns?” to the 2nd step of the process and started testing it, we found that 17% of the Cash Buyers who filled out the form were willing to loan money.
Pretty neat, huh?
