Loans » Investing

GE Unit Expands Oil and Gas Investing – Introduces Loans for Development Drilling

admin — Mon, 25 Oct 2010 15:53:28 +0000

STAMFORD, Conn.–(BUSINESS WIRE)–GE Energy Financial Services, a unit of GE (NYSE: GE), announced today that it is expanding its oil and gas reserves investing business by offering loans for development drilling. In its first transaction involving this new product, GE Energy Financial Services has made a loan to Knox Energy, Inc. — an exploration and production company based in Columbus, Ohio — for drilling natural gas wells in central Ohio. Knox Energy will use the proceeds from the debt fin

View full post on All Stories

Private Lending – How to Do Group Presentations to Raise Private Money

admin — Sun, 21 Mar 2010 07:45:34 +0000

photo credit: Graffiti By Numbers

I recently wrote an article about the the best ways to raise private money for real estate Investors where I laid out the top 4 ways to raise private money to grow and develop your real estate investing business. One of the top 4 ways we use and teach to our students is to use group presentations.

A private lending group presentation involves getting 5 to 20 people into a room and doing a presentation where you lay out the details and benefits of your private lending program. This may not be for everyone depending on your comfort level of talking in front of groups, but the advantages of group meetings are very powerful. When people start to ask questions and tell positive stories, a certain level of group think starts to take effect and can be very powerful on the attendees.

We teach our students to focus on the preplanning and marketing, presentation materials and post-meeting follow up as the key to conducting a successful meeting and getting people to invest in your business.

Preplanning and Marketing – We put preplanning and marketing together because they must be done together. Make sure you have a room reserved that can fit 20 or more people comfortably. It can be a hotel conference room but they tend to be expensive. Other options might include a local library, church or civic groups that allow people to use their meeting rooms. Once you have the meeting room arrangements finalized you can then create your marketing piece with the exact address and time of the meeting.

Now you need to get people to come your meeting. And not just anyone – you need potential investors with extra cash to invest. A couple ways to promote your meeting might include posting flyers in 55%2B communities with retires who might have extra cash to invest. You can also rent a list of local people with high incomes and bank CDs and mail them a letter or post card inviting them to the meeting. You can also place small ads in your local newspaper promoting an “information only” meeting about private lending and real estate investing. Better yet do all of these to help fill the room.

Presentation Materials – In order for the meeting to be successful you need to have a well prepared PowerPoint or presentation handout. It needs to be well organized and show your professionalism. This is no time to “wing it”. Your presentation needs to come off well done and organized where you lay your business plan and why it makes sense for them to consider investing with you. Again this should be “information only” and do not make specific offers to invest or discuss actual projects to invest in at this meeting. Actual offers are done in the follow up to the meeting.

Post Meeting Follow Up – As part of the meeting be sure to gather every ones contact information so you can contact them after the meeting. I recommend a letter 2 or 3 days later thanking them and asking them to contact you if they have further questions. Keep in mind that most will not invest, but if 1 or 2 do become investors from each meeting it is a highly successful meeting.

I invite you to learn more about Private Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit.

Real Estate Investors – “7 Step Formula” to Secure Private Money

admin — Sun, 28 Feb 2010 06:39:37 +0000

photo credit: ericskiff

First – Determine how much money you need to acquire a certain property and be sure to include the purchase price, closing cost and complete renovation costs. If you do not know the renovation cost be sure to make your best estimate so you do not leave these out.

Second – Start to market for private lenders. Make a point to tell everyone you know and meet “that you investing in discounted real estate investments and are looking for investors.” Show your potential private lenders how to start investing passively in investment real estate. You can also use other marketing strategies such as sending out post cards to wealthy people or putting up flyers in 55+ communities.

Third – You will need to create a presentation kit to educate your potential private lenders to the power and security of investing in discounted real estate. Essentially, position them as “the Bank.” Deliver your presentation to your contacts within your sphere of influence and your warm market, such as business associates, friends, family, realtors, accountants and attorneys to name a few. Some of these people may know other contacts within their own networks interested in investing.

Fourth – You will find that many potential private lenders have CD’s or money market funds that are only yielding 3% to 5%. Your presentation has to show that you can offer your investors anywhere from 9% to 15% return on their money versus the small returns they are currently getting at the bank. If they stocks or bonds they may be even more willing to invest in something as safe as good solid local investment real estate versus losing 50% or more in their stock portfolios. You need to offer them more income with a secure investment.

Fifth – Once you have a potential lender or two that has expressed some interest you need to present your proposed deal. You will need to show them what it will cost to purchase and rehab the property and what it will be worth once compete. You may want to borrow all of the money to purchase the property. Or you may go to a bank and borrow 80% and then use your private lender to fund the remaining funds.

Sixth – Make sure your private lender sends the funds (i.e., certified check or wire transfer) to your closing attorney or title clerk. Never have the funds made out to you or your company. Create a promissory note for your private lender explaining the terms of the transaction and make sure they are in either first or second lien position on the property.

Seventh – Complete the purchase of the property and rehab and be sure to invite your private lender out a couple times to see the progress so they remain comfortable the investment and build a long term relationship.

I invite you to learn more about Private Money Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by going to http://realestatewealthtoday.com/FREE-eBook.html

Raising Money With Private Lenders – 4 Mistakes Made by Real Estate Investors and How to Avoid Them!

admin — Sat, 14 Nov 2009 05:42:27 +0000

photo credit: epicharmus

f you are a real estate investor and need funds to finance your real estate deals, or are looking for money to cash out of deals, there is really only ONE option in today’s market conditions. That option is a private lending program where you allow private individuals who have extra money to invest in your real estate investing business.

But with the current popularity of private lending, we are seeing our coaching students and subscribers making a number of mistakes and thought we would highlight the top 4 mistakes and what to do to avoid them when borrowing money from private lenders.

Mistake #1 – Advertising on the Internet – We have seen many investors get into big trouble with the federal or state SEC regulators by advertising for private lenders through internet sites like Craig List and other bulletin boards. SEC regulators are patrolling these boards looking for advertising violations. You can not be sure that people outside your state may be looking at these ads and that would be the same as advertising across state lines and require a federal filing. We do not recommend any internet advertising for private lenders.

Mistake #2 – Using the wrong words in Advertising – We also strongly advise that in all your written or verbal advertising that you NEVER, NEVER, NEVER us the following terms: Guarantee or Guaranteed, Low Risk, Secured, Safe or Risk-free. All of these terms will attract the attention of the federal or state SEC organizations as potentially false or misleading advertising of securities for sale.

Mistake #3 – Not Using Proper Disclosure Language – I strongly recommend you use a disclosure statement in any advertising material, letters, documents, or other marketing materials as part of your private lender program such as;

“This is not a public offering. This is not an offer or invitation to sell or a solicitation of any offer to purchase any securities in the United States or any other jurisdiction. Any securities may only be offered or sold, directly or indirectly, in the state or states in which they have been registered or may be offered under an appropriate exemption.”

Mistake #4 – Advertising Across State Lines – Most small real estate investor do not want to go to the cost and trouble to file with the federal SEC. So it is very important you only advertise and deal with potential investors from within your state and do use advertising that may cross state lines. That is why we do not use newspapers or internet advertising

As with all businesses, it is very important that you avoid as many mistakes as possible and real estate investing is no different. But with private lending a mistake can have serious and expensive consequences so be careful and avoid these mistakes.

Private Lending – How One-on-One Breakfast Meetings Can Help Fund Your Real Estate Deals

admin — Sat, 17 Oct 2009 00:36:18 +0000

photo credit: lumaxart

Recently I wrote an article about the 4 Ways to Raise Private Money for Real Estate Investors where I laid out the top 4 ways to raise Private Money to grow and develop your real estate investing business. One of the 4 ways we use and teach to our students is one-on-one breakfast meetings.

If you are not comfortable with group meetings – one-on-one breakfast meetings are a great alternative. I generally recommend a breakfast meeting in a quiet restaurant where you can have 30 to 45 minutes of time with your prospect. At these meetings you need to lay out your private lending program and benefits of investing with your company.

Pre-meeting – It is important that you have a good presentation kit or creditability kit before you go into a private lender meeting. This can be a PowerPoint presentation where you lay out your business plan, your background and why it makes sense to invest with your company. You also need to have some sort of creditability kit where you lay your past deals, testimonials, educational experience or certification and any other information that lays the ground work for why you are creditable and trustworthy. Do not go into this meeting with out some sort of information and just “wing it” as you go. This looks unprepared and will not leave a professional image.

Meeting – During the meeting you need to develop a rapport with the potential lender. Without rapport nobody will do business with you. It is very simple – people do business with people they like so take the time to develop rapport before going into your presentation. At the point where you have developed rapport start going through your presentation and allow questions as they will assist the private lenders understanding and allow the rapport process to continue to develop.

It is important that this meeting is about information not an actual hard sell. You need to educate the other person first about your program and the benefits of investing with your company. I would not make an actual offer at this meeting. Wait to a couple days after the meeting to discuss a specific deal or invest opportunity.

Post Meeting – I would recommend that 2 or 3 days after the meeting that you email, call or mail something to the person to see if they have any follow up questions and start to mention a possible investment opportunity. Even if they do not invest right away continue to send follow up information as you never know when the time is right so stay in touch.

Private Lending – The Do’s and Don’ts of Private Lending

admin — Sat, 20 Dec 2008 04:14:56 +0000

photo credit: gcoldironjr2003

Private Lending Topic – I have received a number of email questions recently on very similar issues and thought I would address them as a group versus individual emails. The questions are broken down into general areas and include things to do and things not to do. The Don’ts include advertising on Craig’s List and the use of the word “Guarantee”. The Do’s include what are the best marketing methods. My comments on each are below….

Don’ts

Private Lending Advertising on Craig List – I do not recommend that you advertise on Craig List. It is too public and there are state and federal watchdogs looking for people who may be violating securities rules. I have said on many occasions that I do not recommend any advertising that is on a national scale including your own web site. This kind of advertising will get you into trouble with securities regulators and may be considered a securities offering to the public.

I know this from personal experience. Several years ago a person responded to my Craig’s List ad requesting information about my investment program. After several emails, the individual said he was ready to invest and I directed him to my title company to prepare the appropriate documents. Strangely, I never heard from the individual again after that.

A short time later, I received a “cease and desist” letter from the Pennsylvania Securities and Exchange. The letter had several direct quotes from the emails I had exchanged with this individual. The State did not fine me, but asked that I never advertise on Craig’s List or on my web site. Needless to say, I am complying.

Private Lending Guarantee – Do not use the word “guarantee” in any form in any of your advertising. Do not use the word “guarantee” or ever imply that somehow your investments are “guaranteed”. This is a sure fire way of attracting the attention of the wrong people. You may say your investments are secured by real estate, which is accurate, but do not use the word guaranteed.

Do’s

For Private Lending contacts you should schedule at least one breakfast meeting per week – This simple advice might be the best and almost certain way to attract large amounts of capital. Schedule a breakfast meeting every week with someone who has extra cash available and is interested in your lending program. You will not get everyone to invest, but the chances are you will get enough to support a reasonable real estate buying business. At these meetings, be sure to ask the person for the name of at least one other person they know who might be interested in your programs.

Hand out 5 to 10 business cards per week – Again, this simple but very powerful advice will ensure that you have plenty of people on your prospect list. These are the people you have breakfast meetings or schedule a group meeting with. Everyone you come in contact with may be a potential lender. Do not overlook people just because they do not fit the perfect profile. You would be shocked that people that you would never think of as investors may become one of your best clients.

Do you want to learn more about Private Lending and how it can transform your real estate investing business then please click here ===> Private Lending Presentation Kit

The Private Lending Presentation Kit is powerful done-for-you kit loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter please visit http://realestatewealthtoday.com/Private-Lending-Presentation-Kit.html and join the thousand of happy investors who have already joined.

Private Lending 101 – Who Are Private Lenders?

admin — Sat, 20 Dec 2008 04:07:33 +0000

photo credit: joiseyshowaa

Private lending is the practice of borrowing money by a real estate investor to be used to purchase rental real estate directly from private lenders rather than a bank or other commercial lender. Private lenders tend to be ordinary people such as doctors, lawyers, accountants, business owners and possible retired people. Most private lenders are simply looking for better investment returns than they can typically get from bank CD’s, money markets or even bond investments. Over the past couple years these type investments have yielded a paltry 3% to 6% pretax rates. After taxes and inflation these investments have, in some cases, produced negative returns for their investors. This is why people are looking for better returns and private lending is the answer.

Private lenders are looking for returns in the 9% and 15% range and secured by local rental real estate. This kind of return will provide investors with positive investment return of almost 300% over CD’s and money markets. The result is a perfect match of private lenders looking for better returns on their money and secured by real estate and real estate investors looking for cash to fund deals and the ability to pay higher returns.

How to Find Private Lenders

As a real estate investor looking for private lenders, realize that private lending opportunities will not always come to you. You may need to go out and find them. The best way to find private lenders is through networking and low key marketing. Ask people you know directly or friends of friends about the amount of money they are currently making with their investments and would they like to learn how to increase that yield by 300%.

Let people know you are a real estate investor who is paying private lenders 9% to 15% or more and secured by local rental real estate. Those who are interested in learning more will ask questions and express interest. For those people who express interest you may want to arrange a private one-on-one meeting or group meeting with several people to introduce them to your private lending program.

Advertising for Private Lenders

You can do some types of advertising for private lenders but it is very important that you use relatively low key advertising and usually in small local areas. We do not recommend ANY form of internet advertising. With internet advertising you can not control who will read your ads and the SEC may deem your advertising as a solicitation. You do not want this happen and will cause all kinds of problems.

A much better solution can be flyers in elderly communities or bulletin boards at local grocery stores. Your advertising should simply offer to provide information as opposed to offering investments. Public speeches for elderly groups or financial professionals is an outstanding way to offer to provide some education and in many cases will lead to people requesting further details about your program and possible investors down the line. The important point is keep it low key and local and you will steer clear of problems.

Private Money Lender – How to Get Them and How to Keep Them Long-Term

admin — Sat, 20 Dec 2008 04:02:41 +0000

photo credit: woodleywonderworks

Finding a private money lender is an essential part of any real estate investor’s business. In the old days (pre-2006) you could easily get a mortgage or even hard money loan simply by showing up in the lenders office and filling out an application. If you could walk and talk you qualified for a loan.

But today in the post credit-bubble market those days are over. Getting money for your real estate investing business is much more difficult and likely to get even more difficult as the credit markets sort things out. So how do you get money for your real estate investment business?

The answer is a private money lender.

One of the keys to finding a good private money lender is determining if they have similar goals and objectives as yours. You need to understand what they are trying to achieve and if your private lending program fits their needs. For example, if the private money lender wants an investment for a 10 year period, but you plan on doing quick flips every 6 months, it will not be a good long-term relationship. You and your private money lender need to have similar goals for a good long-term relationship that will result in repeat business.

So how do you determine if you and the potential private money lender have similar goals. You need to discuss your plan and ask questions similar to a job interview. We would recommend a series of questions similar to those listed below. Obviously, you can modified these questions to fit your personality, but the information you get will go a long way in determining if this is a person you want to do business with.

Important Questions to Ask

* How much do you have in liquid funds?
* Do you have other monies you might want to consider for an investment program that pays 9% to 15% and secured by local real estate?
* What type of investments are you in right now?
* How much are they making on your current investments?
* How long do you want your money invested for and do you have plans coming up that will require your principal back?
* How available is your money or is it tied up in investments that are not readily accessible?
* Are you a “Qualified Investor” (person must either have a net worth of about a million dollars or have an annual income in excess of $200,000)
* Do you know anything about real estate investing?
* When would like to start investing?

Asking these questions will flush out how close your goals are and will foster a good long-term relationship.

I invite you to learn more about Private Money Lender and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Private Lending For Real Estate Investors – Are You Issuing Securities and Need to Register Them?

admin — Thu, 18 Dec 2008 23:19:23 +0000

photo credit: faungg

..One the most frequent questions I get from students or newsletter subscribers relates to how can I raise money to buy real estate investments through private lending without getting in trouble with the SEC. This is not an easy question but certainly an important issue. Before I would answer this question, I always tell people that I am not an attorney and the advice I give is from my personal experiences and education and should not be considered legal advice.

Is borrowing money for real estate investments from a private lender considered to be issuing a “Security” as defined by the federal SEC or possible your state SEC? The federal SEC defines a “security” as a financial instrument such as stocks and bonds including such things as notes or evidences of indebtedness etc….

Private lending involves real estate investor borrowing money from a private individual in exchange for the investor paying interest to the private lender. At the end of the loan term the investor pays back the principal to the private lender. Most private lending transaction involves the real estate investor giving the private lender security in the form of a mortgage on the property they bought with the money.

So given the definition of a security and the nature of the typical private lending transaction, I believe most people would consider a private lending transaction is issuing a “security” under the federal SEC guidelines. Additional, since most states have securities regulations based on the federal SEC statues, I believe that private lending for real estate investing would also be deemed to be issuing a “security” under most state SEC regulations.

So if you take the position that private lending is a “security”, as I believe it is, how do you borrow money from private lenders without having to register with the federal SEC or your state SEC departments? Well to be able to do private lending transitions without registering with the federal or state SEC you must fall under one of several possible exemptions.

One such exception is made when the real estate investor does not make any public offering. That is to say that the security is transacted privately. In such a case, the security can be transacted without any registration. Each state has different rules and it is very important that real estate investor learn the rules and exemptions of your particular state.

I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Private Money Lenders – How to Find and Market to Private Money Lenders

admin — Thu, 18 Dec 2008 02:16:01 +0000

photo credit: Petrick2008

How Do You Market To Private Money Lenders? As I’ve said before, every business on the planet is in the business of MARKETING.

Yes, that includes you.

First and foremost you are a marketer… second you are an investor. You must know how to get leads in order to even have a chance to put your investment knowledge into action.

So, to get private money lenders for your real estate investing business you must find the people who have money.

Who Has Money?

* Your Family and Friends -Do you have family members who have money that they are earning between 0-5% on? I’m sure you do. Do you think they would want to double the rate of return on their money? I bet they would.

So, why not bring the opportunity of becoming a private lender for your real estate business to your family members first… so you can help your family become more wealthy in the process? Many people hate to ask family members for money… this is a common thing; however, why would you feel uncomfortable helping your family members make more money? You shouldn’t.

The true reason people hate to ask family for money is because they are afraid of losing their money and harming their relationship with them. To me, if you wouldn’t feel comfortable presenting a real estate deal to a family member… I don’t think it’s ethical to present it to anyone. You must be confident that it’s a good deal … that you’re buying it right … and that you’ll be able to take care of your private money lender first and foremos t… and worry about yourself second.

The first property I bought (and still own) was bought with 100% private money. A 95% first mortgage (seller carried)… and a 5% second which was borrowed from my father. My father is earning 6% on his money rather than 3%… the property cashflows and has gone up in value… if for some reason I screw up and don’t pay my dad (not going to happen)… he is in 2nd position on a property with over $100k in equity. It’s a no lose for him… and great upside for me.
* Other Real Estate Investors and Businessmen -Other successful real estate investors have money… and often like to lend out their money to other investors. These are often great private money investors to have on your side because as you’re starting out… they can help you analyze deals… and teach you a ton as you grow as an investor. Also, successful businessmen are great because they know the security that real estate can hold… and know that when the loan is structured correctly they are protected with very little downside.

Talk to other investors and business people that you know and let them know what you do… and that you can provide them real estate secured returns of 9-12% (or whatever you are willing to pay) when they become a private money lender for your company. If there’s holes in your presentation or your business model… they’ll likely point them out… which will help you to make your business stronger over time.
* People Nearing or in Retirement -Think about it… who has a bunch of money just sitting around? Well… people either in or nearing retirement (people 10-15 years away from retirement… up to people who are already retired). Even better, the stock market today sucks and I’ve personally seen many people move their money from the volatile stock market and place the funds in “more secure” investments like CD’s, gold, etc.

It’s your job to find these people and present them another option… to lend money to your company for a much better annual return (usually private money lenders are paid between 8-12%). Show them that you know what the heck you are doing, that the risk is relatively low with the strict buying guidelines your company employs, and that you are looking for long term relationships with lenders who want the same.

These people can move their under performing investments (401k, IRA, etc. ) into your short term private money loans. It’s a win-win. Again, you as the investor need to be honest with the private money lender… and you need to make responsible decisions on the properties that you invest in.

That’s just a short list of people who you should be going after to recruit as private money lenders for your real estate investing business.

Marketing to these people can be everything from simply handing them your business card that has a blurb saying you’re looking for private money lenders who want to earn 10% secured by real estate… and to call XXX-XXX-XXXX or visit www.yoursite.com for more information…

… to sending out mailers to a list of retirees… to teaming up with a financial planner… to putting on free seminars about the opportunity… etc.

***FYI, I’m not an attorney… and don’t claim to be. I’m just throwing out ways you may be able to market to potential private money lenders… to my knowledge they are legal… but advise your attorney before you use any of them… please.***

Here are a few ways you can get in touch with potential private money lenders:

* Ask sellers of the properties you buy if they’d be interested in becoming a lender for your company
* Talk to family about the opportunity … and ensure to structure the deal so they virtually can’t lose… and that the risk is on you (unless you want to lose a family member if a deal goes south)
* Ask other investors at real estate investing clubs in your area
* Put up a website and get it optimized in the search engines (we’re creating a training session on this)
* Network at events (chamber of commerce, etc.) and let people know what you do… and how they can be involved
* Send out postcards to a list of people with over $500,000 net worth (you can buy lists from companies who can break it down by net worth and other factors)

Really, there are endless ways to recruit potential private money lenders; however, in my experience… the best ways are to network, let people in your area know what you do, create a website which educates potential lenders, and get referrals from happy investors.

Trevor Mauch is a young real estate investor and entrepreneur who purchased his first income property at the age of 21. Trevor focuses on creating multiple streams of passive income along side active income in both real estate and his other businesses.

As a passion, Trevor loves to help people succeed in life and real estate investing. To help people achieve success, and to provide a real down to earth source of real estate, life success, and business building information… Trevor created the website http://www.theREIbrain.com

The REI Brain focuses on providing free information and training to people to help them utilize the three important prongs of success that must be taken into account before anyone can reach true success in real estate investing.

Hop on over to http://www.thereibrain.com for excellent free tools, information, tutorials, market research, and more!