Private Money: Great Conversation Starter and Business Funding Source

If we could show you how a simple, yet effective form of basic business communication could mean the difference between struggling to get your business to the next level and having access to all the funding you ever dreamed of, would you be interested to learn more? We thought so, and that is exactly what this post is intended to do, to open your eyes to just how basic the acquisition of private money funding can actually be.
What is this form of communication? Before we get into that, remember that the acquisition of private money funding, whether it be for your business or for an investment project of some kind, is fundamentally a presentation of an opportunity, rather than a solicitation for money. In short, you’re not asking someone for money. This concept can create a substantial mental roadblock for many would be funding seekers who fall short of the mark because they are gun-shy about asking for money, not realizing that it was their mindset that was the real issue all along.
As a final thought, we realize that we suggested we’d provide you with a real basic form of communication that could mean the difference between private funding success and still waiting to reach your goals. That form of communication: a simple handshake and introduction, even if it’s with someone you don’t know. Start with the basics and you’ll at least be out of the starting gate. For more information about raising private money, check out our book ‘Make Yourself a Money Magnet’ or our other array of IRA and private bank building products, and you’ll be ready to take that next important step forward!
Please feel free to post comments or questions related to this post by simply replying to this discussion forum thread. We welcome your feedback and look forward to hearing from you!

How I Close a Potential Lender

Mr. private money investor, where do you stick your money now and what kind of returns are you currently achieving? Let’s assume in stocks bonds and mutual funds, IRA’s, CD’s, savings and just some in the bank. So, you have money in the bank. What are you getting… 2-3% if that? What does the bank do with your money? They loan it to Johnny Lunch Bucket who wants to buy a car, home whatever. They charge him 6-10% and pay you 2%. Who’s getting rich off your money? The bank…so why don’t you become the bank and get even a larger ROI than the bank?

Here is why it’s better to invest with me vs. being a traditional bank. When Johnny Lunch Bucket invests in a home, he usually will get an 80/20 loan and BUYS at fair market value. There’s no equity in the home at all, making it a risk to any bank, especially with today’s dropping home values. I, on the other hand, have skill, knowledge, and understand the current economic indicators of the local economy to make wiser, safer investments. I know where to buy, how to buy, and have numerous exit strategies to make it not only safe for you, but me as well. I use cash to purchase, which enables me to buy at a significant discount, leaving equity in the property.

People who need out of property want out fast, and will be able to accept a huge discount to solve their current problems, whatever they may be. Death, divorce, loss of job, illness, and falling behind on payments are all examples of situations my business can accommodate. As dire as it may seem, working with clients who are facing potential foreclosure is my favorite because I get to make money and I get to help someone who is in need of an immediate solution and often has no place to go.

By using cash, I have a safe secure investment, for which I put you in first position like the bank does to their customers who get a loan. If I don’t pay, you get the property. While I realize you do not want the property, at least your investment is secured with equity built in. I do not hide anything. I am being upfront and honest. Let’s assume I don’t pay. At least there is equity and you can fire sale it and break even. What else can you invest in and have that as a security? Nothing that I’m aware of. A bank has very little equity because the buyer purchases at fair market value. I buy at significant discounts, making it safe for you and I both.

As a final thought, Mr. private lender, how would you like to loan me the capital and make your money back at X% and pay absolutely no taxes…none…ever? No capital gains..nothing. I can show you how you can take your IRA and loan it to me via a direction of investment and promissory note and make 100% of the profits tax free. I can show you how to set up your kids with an IRA even if they are a day old and have no earned income as of yet, in addition to how they also can invest and pay no taxes. I can show you how to set up an educational account for your kids, your grandkids, invest with me and pay for their college education. And no, it’s not a 529 plan, which is not bad unless you know about IRAs like I do. If this all sounds good, we just need to determine how and when you’d like to invest in one of my quality projects.

Please feel free to offer your comments or questions by replying to this post.

Would You Like To Make a Pile of Money?

There are obvious reasons to use private money, other than the obvious, which is the ability it gives you to pursue wealth and financial freedom. First and foremost, there are billions of private money dollars out there either collecting dust in bank accounts, money markets, unsecured loans, CDs that don’t keep up with inflation rates, IRAs (click to go to our boot camps or home study course), or even old 401Ks people do nothing because they watch the market and are scared of losing what they have.

The bottom line is simple. Unlike organized hard money lenders, people with private money do not always know where to invest it, or even that they have it in the first place! This is why you need to learn this system so you can look beyond the venture capital firms or hard money lenders out there, grab a small piece of those billions of private money dollars out there, just waiting for a better place to invest, and direct them towards your own business.

Unlock Your Real Estate Investment or Small Business Potential- Build Your Own Bank of Private Money!

Our aim is to educate and empower the real estate investor or entrepreneur to unlock their potential through the power of leverage. Maximum leverage is obtained through proven strategies and methods for creating a bank of private money, offering you unlimited capital resources for real estate investments or business development. The Money Magnet Man group is comprised of real estate investors and business owners just like you. Our commitment to you is founded upon education and empowering you to reach new levels of achievement and success by attracting and securing private money. Our experience has led us to the point where we just can’t keep this valuable information to ourselves any longer.

Building a bank of private money is absolutely fundamental to reaching a new level in investing and/or business success. Many of you have taken courses, read books, or heard CDs that all show you the tools and techniques you need to develop your business. Let us show you how to fund these projects with private money and do with the speed and flexibility that you’ve only dreamed of until now!

Our training materials (CLICK HERE FOR MORE INFO) will provide you with the foundation you need to start working on your own bank of private money. Have you ever thought of building a bank of private money, heard a seminar speaker talk about hard money or private money lending, or just realized that you are reaching the limits of what you can do on your own with your business and investments?

From the basics, to attracting private money lenders, to negotiating and securing funds, to empowering your private money lenders with creative ways for them to use their own resources (e.g. IRAs), we have something to offer to every type of entrepreneur and something to accommodate every level of commitment to success. We recognize and appreciate that there are unlimited sources of private money, no matter where you live, and our services are geared towards investors and business owners from all areas and from all walks of life. Won’t you join us?

Negotiations With Private Money Lenders

The negotiation phase of working out details with a private money lender can involve a little back and forth interaction and may even involve a little ‘cat and mouse’ strategy. Your calm, confidence, and commitment to a mutually beneficial outcome are what will drive you to a successfully negotiated private money arrangement. Even if you are happy with the outcome, the private money lender should also feel like they are coming out ahead. That is the secret to negotiation success and the following tips will further help you work with your private money lenders to get more deals secured:

* Honesty is always the best policy and there should never be a reason to lie or over-embellish if what you are presenting has legitimate merit.
* Avoid the tendency to stick strictly with your script. This focuses your mind on what you will say next, instead of listening for the tonality and meaning behind what the other party is saying.
* Be confident with your approach and be prepared to defend your position in the negotiation if need be. It’s one thing to compromise and another to cave in.
* Know your goals before ever sitting at the negotiation table. If you are unprepared, it will show and that will be seen as unprofessional.
* Don’t negotiate with parties who cannot make decisions and, when decisions come from multiple parties (e.g., spouses), be sure that all parties are there for the negotiation.
* All private money lenders have goals of their own and you need to find out what they are if your negotiation is to be a success. If you don’t know, ask, and never assume. It’s that simple.

Negotiation is a certifiable business skill and it is entirely normal for you to feel like you aren’t an expert when you first start. Nobody is a born negotiator, just like there are no born salespeople. Those we see who are adept at these skills are so because they have practiced and have practiced a lot. You too should be ready to work your business and, in doing so, get that valuable practice that will also make you better as a negotiator.

To view the complete private money lender negotiation checklist, check out ‘Make Yourself a Money Magnet’. Please also feel free to comment or add questions by replying to this post.

Determining What’s Best for a Deal: Hard Money or Private Money

As you might gather from the nature of our website, our specialty is in the education of investors and businesspeople on how to properly find and use private money lending for a variety of business-related purposes. While we believe strongly in this technique as a way to build one’s business, we also do not want to be seen as slighting the use of hard money lending, as this can also be a good way to fund many types of investments.
So, the real question comes in, ‘When do I know when hard money is still a good route to pursue?’ It’s a great question and we would like to take the opportunity to highlight some of the niche uses of hard money lending that you can use for your own business interests. We at the Money Magnet Man group have two reasons for doing this.
One, we are not acting in your best interest to cast a negative light on hard money as a funding tool. The overall goal here is to help you better position yourself to get deals funded (if you are investing in real estate) or to help fund a business pursuit of some other kind. To downplay or suggest that hard money is a less attractive option, simply to bolster our own concept, is frankly a disservice to our viewers.
Two, hard money does indeed have a place, and it is a wonderful tool when you are just getting started in business. Hard money lenders (as they are usually called for real estate) and angel investors (more business-related) are great tools to help secure non-traditional business funding at a time when borrowers often need them the most..when they are just getting started.
What we’d like to communicate here, with respect to hard money and private money, is that one can often lead to the other. The use of hard money can show you a valuable niche area of funding that is out there, even if it is a more organized lending source. It can also help you realize that there is an unlimited source of private funding out there too, ready to hear from you once you feel comfortable in presenting your business model to the world.
Hard money lenders do not generally want to see your business plan (or even really care that much about where your business is going), while private lenders may be more prone to want this type of information. There is some advantage for the upstart real estate investor in using hard money lending. Just don’t lose sight of the bigger picture, which in this case is the billions of dollars of private money capital out there for you to find.
For more information about comparisons between hard money and private money, check out the sections on www.207.210.64.50/~moneymag. To learn more about how to find and secure private money for your investments or business, click here to check out our book ‘Make Yourself A Money Magnet’ or our other offerings on how to powerfully use retirement accounts as ways to use and attract business funding.
To comment or ask a question about this post, please reply to it and offer your own feedback.

Introducing the Benefits to Being a Private Money Lender

The sample conversation below is a great template to use when introducing your business and some of the perks of private money lending to a potential lender. Remember, they will likely have only a crude understanding of your business at this point, so a review of the basics you may take for granted are both OK and recommended to discuss. Once you check it out, use the reply feature of the forum to add your own thoughts, comments, or questions.

Mr. private money lender, I am an investor. I buy properties in numerous ways. Sometimes I use conventional financing, lease options, seller financing, wrap mortgages, or other creative means to purchase. Above all these methods, my preference is to use private capital. I buy residential or commercial properties, land, mobile homes, and even tax liens and deeds. The common thread is that I like to use cash when I purchase because I am able to get the property at a significant discount. For this, I use private lenders.

I have a system that I will present to you showing everything you, Mr. private lender, would need to know to make an easy intelligent decision to invest in my project. After I buy these properties, my exit strategy varies. I may buy, fix, and sell, rent to own, aka a lease option, rent it, or even make my investor more money by allowing my private lenders to be the bank for the new buyer and offer financing. Many of my private money lenders would rather have a shorter term and make their money quicker so I usually set up loans with my private lenders on a maximum 3 year balloon.

When my private lenders provide financing for a buyer, we charge the new buyer a few percentage points higher than the going rate (usually 2-3% higher) because they are riskier. However, you just do it for 1-3 years and then they need to refinance, pay you off and you make even more money, in addition to what I had to pay you. It’s certainly an option to consider and it’s always great to sit back and make money passively.

A complete list of benefits to the private money lender can be found within ‘Make Yourself a Money Magnet’, as well as tips for conversations and negotiations with private lending prospects. In closing, we encourage you to review the sample conversation above and please feel free to submit your own questions or comments by replying to this post.

12 Reasons Why You Need to Secure Business Capital NOW

Below are some of the many ways that business funding comes in handy and I’m guessing at least one of the things listed may be something you hadn’t yet thought of.

Business capital helps your business grow by:

Allowing you to pursue more projects

Opening doors of opportunity for projects you might have previously not been able to do

Keeping your personal funds and assets liquid, optimizing your business flexibility

Acting as a magnet for even more business capital

Giving you incentive to better organize your business operation and create documents like business plans

Encouraging you to formalize your business through creation of a legal business entity

Allowing better separation of personal and business expenses, making tax planning a preparation that much easier

Establishing you as a better spokesperson and ambassador for the scope of your business

Giving you cause to set higher and better goals for your business

Allowing you to pursue important things like business marketing more aggressively and more quickly

Putting you in better control of your business, where you are more proactive than reactive

Offering peace of mind that this is not something you have to do entirely on your own

As you can see, business funding benefits you in far more ways than just providing valuable capital for your day to day business operations. It also helps create what I like to call a snowball effect, that only grows and gets stronger over time, allowing your business to grow to heights that, a short while ago, were only in your imagination.

For More Info Contact Michael Van Horn

Fund Raising The Guide to Raising Money from

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