What is Private Lending? Please turn off all cell phones, or at the very lease putting them on vibrate. As an engagement bonus, everyone who take my picture, anytime during the presentation tonight and post to facebook, with the #CapitalCityREIA And a brief comment about the presentation. I will give you a copy of the PowerPoint slides. Last but not least. I need you to ask QUESTIONS…

Private lending Alternative source of debt financing secured by real estate, via mortgage/deed of trust that is provided by individuals and hard money lenders. Provides greater flexibility (timing ,structure) and based on real estate NOT credit  

Why use Private Lending? Please turn off all cell phones, or at the very lease putting them on vibrate. As an engagement bonus, everyone who take my picture, anytime during the presentation tonight and post to facebook, with the #CapitalCityREIA And a brief comment about the presentation. I will give you a copy of the PowerPoint slides. Last but not least. I need you to ask QUESTIONS…

Why are private lenders so valuable? Quick Approval/ funding process Funding is based on the real estate and not credit Control and Profitability Source of capital to grow business and make more offers and close more deals.

Hard Money Private Money Credit/Asset Check No personal screening Monthly payments No monthly payments Interest plus points No points 3-6 week approval time No wait time Can always backout            No backout in escrow

Where to find Private Lenders? Please turn off all cell phones, or at the very lease putting them on vibrate. As an engagement bonus, everyone who take my picture, anytime during the presentation tonight and post to facebook, with the #CapitalCityREIA And a brief comment about the presentation. I will give you a copy of the PowerPoint slides. Last but not least. I need you to ask QUESTIONS…

Let’s raise 1 million in our network alone!

Our Million Dollar Network Co-workers ○ Family (close and extended) ○ In-laws ○ Family Friends (past and present) ○ Dentist Gym Buddy ○ Former Roommates ○ Sorority Sister ○ Fraternity Brother ○ Beautician ○ Lawyer Accountant ○ Realtor ○ Church Members ○ Parent’s Friends ○ Your Kid’s Sports Coach ○ Doctor Neighbor ○ Current or Former Professor ○ Successful people you do business with on a regular basis

I know what your thinking...

Yes- they have money. Our strategy is quite simple Yes- they have money! Our strategy is quite simple.. Anyone with a 401k or 403B or retirement account from a past employer we will meet with!

Our Self Directed IRA Company Contact: Kelsey Dineen | Midland IRA Senior Sales Associate 239-333-4920 Phone www.midlandira.com

How to find them outside your network?

REIA /Meetup Networking events Facebook/Yahoo Groups Direct mail campaigns (cash buyer list) Create and scrub a local list MLS Cash buyer searches Crowdfunding sites Attend a party/better yet throw one!

Building Connections + Add everyone who Linkedin says you may know + Look up people industry specific + Use the Advanced Search feature + Look up people who are in groups + Tap into your Alumni Database on Linkedin + Build your team using Linkedin

What to say to your connections? Can do one “Generic Message” and add follow up Can also ask a series of questions to pique level of interest ahead of time What is your core business? Do any of your current investments include real estate? What is your annual ROI for your current investment projects though your retirement account?

How to autopilot your messaging Find a VA Have them add connections for you Have them pique and ask questions Have them set up appointment times Wash, rinse, repeat

Where to find lenders? Use the Advance Search Use from people you may know Look in Groups Look in Linkedin Network

Best Practices – Personal Networking/ Linked in Networking + Create a unique, relevant tagline + Include all relevant past employers, organizations and associations + Ask for recommendations – at least one per job + Include relevant URLs – professional social profiles, current employer, blog + Optimize text associated with links + Post regular updates to stay top of mind with your network

Documents to have when meeting with a lender Please turn off all cell phones, or at the very lease putting them on vibrate. As an engagement bonus, everyone who take my picture, anytime during the presentation tonight and post to facebook, with the #CapitalCityREIA And a brief comment about the presentation. I will give you a copy of the PowerPoint slides. Last but not least. I need you to ask QUESTIONS…

          Private Money Credibility Packet

Promissory Note

Promissory Note The terms are set (amount borrowed, payback date, interest) The obligations if the terms are not met The personal guarantee of other assets The state in which court filings will be held The signed signature of the borrower

Deal Analyzer

Tell them where to put the money Tell them where to put the money!! Provide wiring instructions for Title Company

What do you say when you meet with them? Please turn off all cell phones, or at the very lease putting them on vibrate. As an engagement bonus, everyone who take my picture, anytime during the presentation tonight and post to facebook, with the #CapitalCityREIA And a brief comment about the presentation. I will give you a copy of the PowerPoint slides. Last but not least. I need you to ask QUESTIONS…

Rapport building • Research them as much as possible • Trying to build a “trust” connection • Family, Friends, Common Connections Notes: What is my one trust connection? What is my promise to them?

Intent statement & agenda • Agenda: Purpose & length of the meeting • Posture: You don’t need their money now • Personal questioning: They must be open • Business relationship for life • Commitment: At the end all I ask for is a simple yes or no….Are you interested?

Discovery of current investments & goals • How they made their money Discovery of current investments & goals • How they made their money? • Experience in real estate? • Experience with private money investments? • Current investments & returns? • Current availability of funds?

Company overview • Personal story of company founded • Experience & education • Company goals • Private lending track record • Competitive advantage

Investment buying criteria • Types of properties we buy • Buying criteria: what we pay for houses? • Why our buying criteria creates safety for you as a lender • Case study

Terms & Conditions • 8-12% interest no points • 1st or 2nd Lien position • 12 months no monthly payments & Fee w/ option to renew

Documents & protection • Promissory Note • Mortgage Deed or Deed of Trust • Hazard Insurance Policy – Lender Listed as “Loss Payee” • Personal Guarantee*

Closing process • Process of retrieving their money Common ways our private lenders fund deals • Cash in the bank • Home equity • Personal & business credit lines • Liquidated securities & investments • Retirement accounts

Questions · What if something happens to you Questions · What if something happens to you? · What if you don’t sell the house for what you think? · What if I have to pull my money out? · What if I can’t fund an entire deal? · Can I think about it? · Why isn’t everyone investing this way?

Commitment • You can’t be afraid to ask for the money • Have a concrete plan for follow up if they need more time

SEC Guidelines for Lending Please turn off all cell phones, or at the very lease putting them on vibrate. As an engagement bonus, everyone who take my picture, anytime during the presentation tonight and post to facebook, with the #CapitalCityREIA And a brief comment about the presentation. I will give you a copy of the PowerPoint slides. Last but not least. I need you to ask QUESTIONS…

What is an accredited investor?

Accredited Investor Someone who makes $200,000 filing single two years in a row or $300,000 jointly Have a 1million dollars of net worth excluding value of primary residence.

SEC No- No’s ==> Advertising in newspapers, Craigslist, radio, billboards  ==> You can NEVER guarantee ANYTHING! (Nothing is guaranteed)  ==> You can NEVER say 'SAFE' (IE Your money is Safe with our investment) (This is kind of along the lines of guarantee. Nothing is ever safe. Nothing is ever guaranteed.)  ==> You can NOT advertise your returns. (IE Make 10% or more on your money by investing with me now!)  ==>You can NOT come out and say 'I'm Looking for Investors!'

SEC No- No’s If you solicit with fliers, make it about teaching someone about how to become the bank, or how to transfer their sitting 401K funds from old jobs into a self directed IRA to invest wherever they want and the requirements for doing so. The first and best way is to tell everyone you know personally about your business and the opportunities that are out there. You can solicit the particulars ONLY if you have a personal relationship with them, meaning, you know their financial situation is and have qualified them as able to do private lending (some states only allow 10% of a person's net worth to be used for private financing). Examples are Coworkers, neighbors, your doctor, lawyers, CPAs, other investors or entrepreneurs, etc.

Legal ways to Advertise Here are 3 simple ways to legally and safely advertise  *Luncheons (Keep it GENERAL, like I explained above for advertising) *Work with a mortgage broker (one that specializes in investment property financing) (they act as a middle person to find the private lenders. They’ll examine the offering and market it to their private lenders for you)  *Online Marketing (if you do that, its fine, you MUST make sure not to DETAIL your offer!) Mention what your COMPANY does, successes; BUT password protect your OFFERINGS and documents. People must have to jump through hoops to get to your offering! (This is why I'd be careful what you put on a flier)

Multiple Touches THE RULE OF 45 to be SAFE: It you are cold calling (meaning trying to get someone you do not know to do private lending with you), there is a 45 day wait period, in which you MUST have communication with the person on at least 3 occasions (can be email, direct mail, etc) but ONE of them must be in person or by telephone within the 45 days.