You too can get the money you want from people, not banks. You can get it faster and easier, with no limit on how much you can borrow.
On this page, you’ll learn about these six positive aspects of borrowing from private lenders…
- No monthly payments
- No points or fees and virtually no closing costs
- No out-of-pocket costs not even for renovations
- No credit checks or tax returns
- No waiting periods
- No prepayment penalties
With private lenders ready and eager to finance your deals, you’ll be able to
- Buy dirt cheap properties like there’s no tomorrow. Don’t lose a deal to someone with “all cash” because you can’t finance the deal fast enough.
- Always have cash to close the deal. Make every offer with confidence.
- Never take a dime out of your own pocket. You always get 100% financing, plus the money you need for renovations.
- Collect part of your future profit the day you buy a property.
- Borrow with no monthly payments. After all, you’re the one who defines the loan terms. So you entice lenders to let interest accrue until you sell the property.
- Wield your “all cash” position to negotiate rock bottom prices on the properties you buy.
- Money is always waiting for you. The moment you sell one property, your next loan is sitting there, waiting for you to buy another property.
- How Private Money Could Make You a Millionaire
- Why Seasoned Investors Don’t Use Banks
- Never Be Handcuffed by “Creative Financing”
- Never Let Hard-Money Lenders Squeeze You Dry
- Get the Money You Want from People, Not Banks
- How Overconfidence Can Damage Your Lending Relationships
- How to Make Your Phone Ring off the Hook with Lenders
- Attract Prospects and Make Them Beg to Loan You Money
Over the past 14 years, Alan Cowgill has perfected 16 methods for attracting people with money, winning their confidence, and turning them into private lenders. He’s done hundreds of real estate transactions.
No wonder he’s interviewed alongside Donald Trump in the book “Walking With the Wise Real Estate Investor”. Industry leaders call him the authority on attracting private money; they compete with each other to book him at their conferences. One year, Mr. Cowgill spoke at 54 conferences and boot camps, conducted 85 training webinars, and was also featured on a couple of radio shows and a TV show.
How Private Money Could Make You a Millionaire:
Impossible Dream Comes True for Some Real Estate Investors
Imagine it’s two months from now. Your local competitors can never seem to line up financing fast enough. In fact, many of them are afraid to make offers because they don’t know how they’ll finance the deals. But you have an unfair advantage…
- You’re surrounded by a number of private lenders, ready and eager to finance your real estate deals. I’m talking about regular people who love getting a good return on their investment dollars.
- And now that you’re free from using banks, hard-money lenders, and your personal funds, there’s no limit to the number of properties you can buy!
- Friend, with the methods you’re about to learn, you will see the potential to have millions of dollars waiting in the wings â€“ without jumping through hoops for bank loans, being ripped off by hard-money lenders, or getting blown off by sellers who fear creative financing.
- If you have private lenders now, you’ll learn to attract so many more that they will fight to loan you money. And once they’re in competition, they’ll gladly accept a lower interest rate (after all, their only safe alternative is many investments that pay paltry rate of returns).
- But your credibility is a huge factor. Without the right approach, you could be dismissed as a fly-by-night, wreck your precious lending relationships, or get trampled by the SEC.
Why Seasoned Investors Never Use Banks
You were probably drawn to real estate for the profit potential. But if you’re like me, you also love being your own boss, calling your own shots, and making your own rules. So why let banks decide your fate? Why have your hands tied by their strict underwriting guidelines? Why jump through their hoops to prove that you’re a good risk?
I have good credit, but that doesn’t guarantee anything. I once waited 4Â½ months to get a bank loan approved. If the seller had been impatient (which is normal), I would’ve lost the deal. The bottom line is, you can’t count on your relationship with a banker. I did, and then one day the regulators came in and blocked him from doing real estate investor loans. That shut me down instantly.
Here’s what happens when you’re at the mercy of banks:
- You lose the hottest deals. That’s because banks can’t finance them fast enough. Distressed sellers need cash today, not in 30-60 days.
- You’ve got to cough up a 20% down payment. So your personal funds are always tied up, crippling your cash flow and limiting the number of properties you can own at once.
- You’re nailed with excessive points and loan fees.
- You can’t finance properties with water damage, missing furnaces, old electrical systems, or anything else unusual. Banks are too picky about which properties they’ll finance â€“ and you’re constantly at their mercy.
- You’re crushed by backbreaking monthly payments â€“ and often stressed out by negative cash flow.
- You could be approved at first, only to have the underwriters change their minds at the last minute.
Never Again Be Handcuffed by “Creative Financing”
In those rare cases where a seller agrees to owner financing, lease options, or “subject to” financing, these creative techniques are great. They free you from using banks and hard-money lenders. But let’s be honest.
When you sell a property, which do you prefer… terms that leave you cash-poor (with ongoing risk if the buyer defaults)… or an “all-cash” offer? Most sellers are like you. They want closure. They want all cash. When you rely only on creative financing…
- You lose the hottest bargains – because investors with “all cash” always beat you to the punch.
- You can’t buy REOs with creative financing.
- You can’t close on most of the deals you find – since most sellers are afraid of seller financing.
- You usually pay a higher price. When sellers concede to creative financing, they usually demand higher prices. Those inflated prices eat into your profits – and the experts who teach these methods are the first to admit it!
- This method is impossible in a hot seller’s market.
Never Let Hard-Money Lenders Squeeze You Dry
When sellers are distressed, they need cash fast. They can’t wait for bank loans. And they rarely offer creative financing. So most investors think hard-money lenders are the only option. But there are far too many downsides:
- You’ve got to cough up a 15% down payment. This ties up your personal funds, cripples your cash flow, and limits the number of properties you can own at once.
- You’ve got to pay the loan back within 12 months – so you can’t buy time by lease optioning or owner financing the property.
- You pay a high interest rate plus five points and you get eaten alive by all of the additional padded closing costs. (When I used hard-money lenders, I saw one deal that had $5,000 in points and more on padded fees, etc.)
- You need good credit and tax returns. Ten years ago, hard-money lenders loaned solely based on 65% LTV. But today, they qualify you like banks.
- You’ve got to cough up your own cash for renovations. That’s because your rehab funds are stuck in escrow. So even though you’re paying interest on this money, you don’t get it until after your renovations are validated by an appraiser. (And you have to pay for the appraiser.)
- You’re slammed with a huge pre-payment penalty if you flip a house in less than three months.
Here’s What’s Included:
A Comprehensive 254-Page, Easy-to-Read Manual
This valuable manual contains the information you need to attract private lenders — be they strangers (once you’ve registered) or family, friends, or associates — and motivate them to dump loads of money on your doorstep.
- The same step-by-step system I use to pack my luncheon presentations with motivated prospects who are frustrated with their current investments. This foolproof system gets them begging to loan you money.
- My ten secrets to a successful luncheon. Includes a bulletproof guide to setting up and leading your presentation for maximum results.
- A detailed checklist spelling out exactly what needs to be done the week before your seminar, the day before, the day of, and the day after. It also includes a reservation list so you can keep track of who’s attending.
- Talking points for each of my overhead slides so you know what to say during each slide and why. These simple points will convince your prospects that loaning you money beats any other investment.
- The 6 ways to demonstrate credibility. Learn my trust-inspiring approach to answering your prospects’ questions – so you don’t make the wrong impression and scare them off.
The best thing about my presentation is that it’s a soft sell method. So you’ll never have to corner your prospects or pressure them into a decision. And if you decide to register with the SEC, then even more tools open up for you to advertise to strangers. The Premium System is intended to help you find private lenders among folks that you already know (like I did with my mom) and also among strangers once you are in SEC compliance. This manual also shows you:
- How to rotate your newspaper ads for maximum response – and discover which section of the daily paper gets the biggest results on which day of the week.
- How to blow the lid off your postcard campaign through repeat mailings. Find out how many times you should re-mail the same prospect, and how frequently.
- The 4 key characteristics of people you should mail postcards to– so your list broker can compile an ultra-responsive list. By the way, I’ll also give you a list broker’s phone number..
Access to a One-of-a-Kind, Auto-Fill Forms Website
This awesome tool will blow your mind… and save countless hours of your time. It features the tools that I have created; from my postcards and mailers to my newspaper ads to my proven 37-slide PowerPoint presentation (26 forms in all).
When you get “The Premium System”, you will receive access to this forms website via a web address and registration code. It’s simple; go to the site, create a new account with a username and password you choose, and then enter the registration code I will give you in your manual. You will need to complete the personal profile information and, in a matter of minutes, you will have all of this at your fingertips… completed for you… ready to use… with your information from the profile you created:
- The 37-slide presentation – in PowerPoint and Microsoft Word formats
- The Audio Business Card
- The marketing pieces – newspaper ads, postcards, trifolds, and fliers
- Scripts – for talking to people to get you over the “Fear Monster” of what to say
- The Seminar Checklist and Money Loop Presentation
- 3 Lender Reports
- Lender Interest Form (to find out if they are interested or not — and if they are, what amount do they want to loan).
An Informative Quick-Start Audio CD
This CD is your first step when you get this system. I will personally guide you through the system and give you step-by-step instructions on where you should start, focusing you on the things that will get you up and running: collecting those private lender funds, in the shortest amount of time… safely. My goal is to keep you from struggling with this aspect of private lending and to get you started on the right foot.
10 Super Audio CDs
In addition to the tools you’ve read about, “The Premium System” has 11 audio CDs that will transform you into a private money master. Take my premium system with you anywhere you go. You can listen to these great CDs in the car, while you’re exercising, or while doing work around the house. These audio CDs will transform you into a private money master.
You get 6 CDs that include a recording of a live seminar, an audio of me interviewing my office manager on preparing for a luncheon (Luncheon Checklist), an audio of me answering student questions (Alan Answers Questions), and an audio of me presenting my PowerPoint slides (Luncheon Presentation). These audios cover the full gamut of obtaining private lender money, such as…
23 Secrets to Attract Qualified Prospects and Make Them Beg to Loan You Money
If you want to work with strangers, you must first get registered with the SEC, and then you can collaborate with your mailing list broker to create an ultra-qualified list of local folks who have money. Of course, many of the respondents may become repeat customers, loaning money again and again, each time you repay them.
- Use dirt cheap mailers, special reports, rotating newspaper ads, and “drip” postcard campaigns to jam-pack every luncheon with qualified prospects — after you are registered so you can advertise.
- Show prospective lenders how you’re an expert on finding distressed properties, renovating them, and profitably reselling them.
- Never turn away money because a would-be lender can’t cover 100% of your purchase price. Learn to use second mortgages so these lenders can finance your renovations, or piggyback on top of lenders with more to loan.
- Use your “all cash” position to get rock-bottom prices on the properties you buy.
- Borrow the “frozen” money in your lenders’ IRA accounts – by helping them create self-directed IRAs. Screwing this up could irreversibly complicate your lender’s tax obligations. You’ll learn how to choose the right forms and fill them out correctly.
- Stop watching your profits disappear because you can’t resell your properties quickly enough. I once had nine renovated houses sitting vacant for months, and the loan payments were eating me alive. Thank God I learned the secret to plugging this leak. This life-saving technique will stop your suffering too.
- Handle demanding prospects who want to micromanage you. I’ve dealt with a few of these prospects, and my hard-won advice will save you from months of grief.
- Your lenders many times will loan you more and more money. With this strategy, I have many repeat lenders who are now loaning me many times their original investment.
- Position your loans as the alternative to risky stocks.
- Assume the right “posture” so you never come across as begging for money – a perception that can really damage you.
- Create so much demand from lenders that you can slash your interest rate – and still have plenty of lenders lined up to loan you money! When you have too many private lenders, you can even turn away the ones who want to have too much influence on your deals.
- Quickly screen out prospective lenders who’ll be more trouble than they’re worth. Learn the magic words to pre-screen lenders so you’ll be working only with easygoing, qualified lenders.
- This one session can save you a lot of pain.
- Borrow with no down payment – Here’s how to get the “after-repair-value” appraisal and borrow the entire purchase price, plus enough for renovations, while still giving lenders 70% LTV.
How much interest should you offer your lenders?
- Should interest start accruing when you receive the lender’s money, or when you close escrow on the property? Take our advice and you won’t have to grapple with this question.
- Start conversations with a 30-second commercial that makes people eager to jump on your bandwagon.
- Should you route inquiries to your cell phone? Your voicemail? A live answering service? Find out which method I use and why.
- Many prospects will think your offer is too good to be true. Learn to explain how private money helps you grab bargains before your competitors do, and negotiate rock-bottom prices.
- At the end of your luncheon, you don’t want to pressure your prospects. But if your soft sell is too soft, you’ll forfeit a lot of money. The solution: give your attendees the three choices described here. This keeps you from losing folks who are on the fence. It gets loan commitments from people whose assets aren’t liquid yet.
- The safest and only way to take money from your lenders, so there’s no mismanagement or even any perception of mismanagement.
When someone with a ton of money to loan demands a higher interest rate from you, should you make an exception?
- Prospective lenders may think, “Are you for real? What have you done?” Here are credibility techniques you can use to melt away their skepticism.
- After renovating, should you buy and sell, buy and hold, or lease option your properties? I’ve tried all three. Find out which exit strategy I like best and why.
- Get a cash advance against your future profit – and go home with a check the day you buy a property.
My Audio Business Card – Use it to get loan commitments from prospective lenders who can’t attend your luncheon.
How would you like to attract private lenders like bees to honey? Well here is my most powerful marketing tool. This package contains a compelling cover letter, sample promissory note, commitment form, and a list of the items securing your lender’s investment. Plus, mouth-watering examples of how much money your lender could earn.
- And it’s all housed in a plastic clamshell case.
- Most convincing of all is the blockbuster CD titled “A Great Alternative To The Stock Market”. You won’t believe how well this audio CD motivates your prospects to loan you money.
Here’s an example:
You’ll get access to the forms website containing all of the printer-ready documents you need to create your own Audio Business Card Package. It also includes a cover insert for your clamshell, CD labels for “A Great Alternative…”, and a template of my double-sided business card. Plus, a license to reproduce everything.
Awesome Credibility Kit
Private lenders will only lend you money if they trust you. Building credibility is the least appreciated, but most important, item in your toolkit. Therefore, I cover all aspects of credibility building. One of the components is a well-developed credibility kit. See the full credibility kit that I use, so you will know exactly how to build your own.
One-on-One Deal Closer Toolkit
So when prospects can’t make it to your luncheon – and the Audio Business Card Package isn’t quite enough to win them over – you can easily close the deal in person. This toolkit is also perfect if you prefer not to hold group meetings.
- A bulletproof checklist: To prepare you for your meeting. Includes what to bring to the meeting, what to cover, and what documents to notarize and record. It also shows you how to update your bookkeeping software, amend your insurance policy, and reassure your new lender that he made a great decision.
- Phone scripts: When people respond to your ads, use these bulletproof phone scripts to excite them, reassure them, and compel them to meet with you. You won’t believe how eager and motivated they’ll be to meet with you.
- Meeting script: Memorize this script for your one-on-one meetings. Then you’ll be able to answer the toughest lender questions with confidence. You’ll know the right way to position yourself, overcome their skepticism, and win their trust. So even if you’re just getting started, you’ll come across as an old pro.
Set of Three Spreadsheets (Online) that’ll give you a snapshot of your business and save you lots of time.
- Follow-up Report – This life-saving spreadsheet quickly and easily organizes the follow-up info for your prospective lenders so your prospects will never fall through the cracks. You’ll never lose an opportunity because you forgot to follow up.
- Active Lender Report – Makes it easy to pay your lenders on time. Lists each lender’s contact info, the date money was loaned, the amount, and when interest is due (i.e. monthly or when the property sells).
- Payment Schedule – With this report, you’ll never forget who to pay and when. It shows which payments are due on the first and fifteenth of each month, and lets you type in the date each payment is made.
About the Author
Alan Cowgill is the owner of Colby Properties, LLC. and President of Integrity Home Buyers, Inc. Alan is a full-time Real Estate Investor, investing in single family and small multi-family properties in Springfield, Ohio. Since 1995, Alan has bought and sold over 200 investment properties. Alan uses Private Lenders, not banks; to fund his real estate purchases. By doing this, he has created his own private bank of $2,000,000 in funds.
In addition, Alan: Holds a BS Degree in Business Management. Has over a quarter century experience in Business Management. Is a published author not only for Real Estate but also in American Industry. Featured in the Business Section of the Springfield News-Sun newspaper in May, 2001. Article on real estate investing in Springfield, Ohio. Adjunct Professor for 5 years at Clark State University. Speaking Engagements include: Yovel, England; Dallas, Texas; Fort Collins, Colorado; Atlanta, Ga.; Jacksonville, Florida; Cashiers, SC.; Las Vegas, Nevada and Springfield, Ohio. Business trainer and consultant. Member of the Springfield Chamber of Commerce and Better Business Bureau. And best of all, Alan Cowgill is married and the father of three children.
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