Networking to Attract Private Lenders

Student: If I run into where I don't get a lot of private lenders wanting the wholesale route that I set up, and want to flip to them, then I'll have to fill in the gaps. That's why I'm listening to you and keeping that in the back of my mind. When I set something up I need to look at not only flipping it but hanging on to it for a longer period of time than what I really want to.

Michael: Okay. Again, I would suggest a couple of things. One is I do have the coaching program if you want to join that. That is a more intensive hands-on process. We have weekly half hour calls where we sit down and go through these various steps.

We spend time on the phone with it, develop some homework for you to work on over the next week or two, and then get together on the phone again. We can try to get by a certain element and get to the next element and move you through this process. That's an option.

We'll also have a call in March that will be on the marketing piece of this. That's something I really love to do. Marketing is one of my passions. I think that will be a really exciting call and I'm looking forward to that. We're going to talk about the 12, 15, 18 different ways you can market to try to attract private lenders.

One of the things I'd be interested in if you wanted to work together is the social networking you mentioned. You're on a lot of sites and that's something that needs to be explored for private lending as to whether it can work.

I'd be curious if you have some thoughts about that, and we could spend some time talking about it - about ways to attract private lenders through Twitter, Facebook, and a few of these other sites. I don't know if anybody is out there trying it or experimenting with it, but I think it's probably worth some energy.

Student: There are several good real estate sites out there that are investor intensive.

Michael: Like Active Rain. You may be on the Active Rain site, again focused on real estate. It seems like some of these social networking sites can be a real fruitful way to try to attract private lenders.

Student: Exactly. That's one of the reasons why I brought up earlier the question of what is crossing state lines. What happens if this person comes to my state for some reason and we discuss face-to-face the rules and regulations?

The only reason I brought that up is because they threw friends and family out there as if everybody lives in the same city or state. Most of my friends and family live in different states. From what I'm gathering, I don't think I can even get them.

Then I was thinking maybe they have to come to your state and you have to talk to them face-to-face to tell them what the rules are. As long as you sit face-to-face with them then you're okay.

Michael: It's where they are domiciled, their primary residence.

Student: I was thinking maybe it's where the home was. You can't get private lending for another home outside of your state. However, as long as you met with the person, no matter where they came from, and as long as they're sending the money to a property in your state, I was thinking maybe that's what they're talking about.

That's how your friends and family could be in different states, as long as the property you're funding is in your state. Then you're not technically crossing state lines, since I'm not funding a property in another state. I'm only getting funds from another state.

This looks like both ends of it. The person who funds it and the property you fund both have to be in your state.