Timing is Everything
Tim sent me an email today explaining a good deal he had just lined up. The sellers are 4 months behind on payments, it’s a decent loan (30 yr. fixed @ 6.5%), and there is about $50,000 in equity that the sellers are willing to walk away from. Tim explained “subject to” to them and they are fine with it they just want to get out. So, Tim shoots me over the specifics and asks me if I would do the deal. Based on the details that I saw I told him
that if the comps were what he showed me and the terms were as stated and I thought that I could cash flow it, then YES I would do that deal. Then, Tim throws THE question at me – I have to close it in 7 days what’s the best way to find a private lender?
Although it’s NOT impossible to find a lender this quickly, the “best way” is to find a lender before you need one. You should be talking to people about your private lending opportunities ALL THE TIME. I mean every, single day. This should just be a part of who you are and what you do, like brushing your teeth.
When you’re worrying about losing a $50k equity deal you’re going to sound different to a potential lender than you are when you’re just lining up another source for your resource bag. People can sense and hear desperation in your voice and noone wants to lend money to someone who is desperate.
Do yourself a favor starting today. Make this a daily habit. Commit to yourself, your business partner, your spouse – someone who will hold you accountable, to talk to 5 people a day about your private lending opportunity. It doesn’t have to be a 90 minute presentation, just work it into every conversation.
When you make this a daily habit those $50k profit deals will be a slam dunk because you will have the lenders waiting in line!