Marketing is always the key driver to running any business. We always need to be thinking about how we can differentiate our strategies to get ahead and stay current. A lot of my clients ask me all the time if there are any new methods to sourcing private money for real estate deals. Sometimes there are new approaches and sometimes the old, proven methods still work best. Below are the top 5 that I’ve seen the best results from when sourcing new private money sources:
1. Small Aggregate Lending Sites – These sites are put together and funded by other individuals who want to make a return on their money. An example of this is Prosper.com. This site will pool individuals’ money together and bet on you based on your profile to negotiate the interest rate, etc. Their limit is $25K loans but these are great for funding renovation and/or holding costs when you buy a property subject to the existing loan, the seller finances the property on a first mortgage, or you want to renovate a rental that you have. In today’s market another great strategy is making up the back payments on a foreclosure deal and taking it over subject to the existing financing. The great deal about these Prosper.com loans as they aren’t secured against the property.
Any of you that have been buying and selling houses must have run into a situation that you have to deal with difficult members of your community. In my real estate business, we get people complaining usually about 1 of 2 things. Either they are mad because we’ve sent them a direct mail postcard advertising that we buy houses or they are mad about a bandit sign out on a street where they shop. On the direct mail complaints, we always wonder if they get mad at Domino’s pizza as well for sending them coupons monthly? Here’s my point, its first class mail and we paid to send it so throw it out if you don’t like our offer. Not a big deal.
Well, recently we received a “nice” email from a member of a community in which we have a home for sale….See what he wrote and see my response: