Firing Private Lenders
WAIT A MINUTE ALAN!
We’ve spent all this time and effort to get private lenders and now you send us a newsletter on firing them! What are you thinking?!
Well, stay with me here and I’ll explain. I love my private lenders. We get along great and I make sure of that. Up to this point we’ve talked about how to attract and keep private lenders. If you don’t have private lenders at this point, being selective about them may be something you’ve never even considered.
Once you’ve done your homework, gotten your real estate education, and taken all the steps needed to attract private lenders, you could quite possibly have many of them offering to do business with you. This is an awesome position to be in and gives you a great opportunity to work with some pretty fantastic folks.
What is a scenario where I might not work with a private lender who is trying to throw wads of cash at me?
They want to be too involved…
I’ve spent tens of thousands of dollars on my education and have been in the business for over 10 years, I know how to do this business. I have definite ideas about the way I want to run my RE business. I attend seminar all the time. I’m always striving to learn and to improve.
Sometimes a well-meaning soul will want to “help” me by offering advice in an area where, frankly, I’m an expert, and they have little experience.
You are going to run into these folks. This is where you need to have a solid education so you don’t get sidetracked. I can work with most private lenders. They give me money; I send them interest payments.
Let’s be clear on your private lender’s job. Their job is to write a check and then set back and wait for a bigger check. It is the American Dream.
Once in awhile you will find that someone wants to work “with” you and maybe even be a partner.
They believe that the money they invest in your business gives them the right to offer advice and they expect you to take it, in the way you run your office, what properties you purchase, what rehab workers you hire, and so forth.
Just be aware that some folks will want to be a partner and if this is not what you want, be prepared to correct the situation before it goes too far in the relationship.
To be honest, I stop it on DAY ONE.
My advice is to always be professional about it. I’m gracious. I simply explain my position and my rational for what I do.
Alan Cowgill is a speaker, author, and real estate entrepreneur. Alan has bought or sold over 200 investment properties. His step-by-step system “Private Lending Made Easy” teaches others to find private lenders. Contact Alan at 937-390-0816 or 866-831-3540. For a FREE audio go to www.PrivateLendingMadeEasy.com |
