Private Lending: 5 Mistakes to Avoid When Building a Private Lending Credibility Kit
An effective private lending credibility kit is often a real estate investor's ticket to the success for securing funding from a private lender. If your private lending credibility portfolio is compelling enough, you will have private lenders flocking to your doorstep and you will be able to establish long lasting business relationships for future real estate transactions.
An effective credibility kit is often a real estate investor's ticket to the success for securing funding from a private money lender. If your private money lending credibility portfolio is compelling enough, you will have private money lenders flocking to your doorstep and you will be able to establish long lasting business relationships for future real estate transactions.
Creating an effective private lending kit means avoiding the mistakes that could potentially burn bridges for future transactions as well as discourage private lenders from funding your current venture.
When it comes to real property, burning a bridge for good is serious business, so you want to try and avoid all of the mistakes that you can right from the get go.
Vague Cover Letter
The cover letter in your kit provides your first impression to the potential private lender. If the lender cannot understand your purpose in the cover letter, they are certainly not going to be inclined to lend you money.
More so, a vague cover letter will make your credibility kit look "not so credible," and more like the rest of the kits out there that are simply "run of the mill."
Clarity wins the race here and makes your credibility profile stand out from all of the others.
When you think about all of the real estate investors out there that are seeking private lenders, writing a generic bio that resembles a resume is not going to make your kit stand out from everyone else. Chances are the prospective private lender will read a few words and then move on to someone or something else.
Conversational structure is the key to grabbing the private lender's attention because he/she will feel like you are personally speaking to them.
Disorganized Credibility Kit
Organization is one of the attributes of credibility and competence. If your credibility kit is disorganized the private lender will get frustrated and most likely toss your portfolio. If you cannot organize your credibility kit, then how are you going to manage a real estate transaction?
Create a credibility kit that leads the private lender and clearly demonstrates the location of the information he/she is seeking. This will also indicate that you are a capable leader and pay attention to details.
Failure to Update
Some real estate investors fail to keep their private lending credibility kit updated. This will lead the private lending to believe you have not recently accomplished anything related to real estate and that the information they are reading is "old hat."
Updating means that you still have a pulse and are continually interested in your business and constantly gravitating toward long term goals.
No Credibility Kit
Having no private lending kit credibility and relying on your words to get you funding for your real estate transaction only complicates the situation. Chances are the private lender will suspect you are trying to "BS" your way into the deal and you will lose all credibility and burn that bridge for good.
Providing the lender private with materials they can review at a later date will increase your chances of closing the deal as well as demonstrate to the lender that you are co
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ABOUT THE AUTHOR
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 . Mike Lautensack is a full-time real estate entrepreneur and creator of the Private Lending Presentation Kit. To learn more about this kit go to Private Lending Presentation Kit.