Setting Up Private Lenders: Determine And Reach Your Target Market
BATTLECALL GUEST EXPERT: Alan Cowgill,
PrivateLendingMadeEasy.com
This is an awesome business! You can find private lenders who will
change your life and help you take your business to an incredible level of
success.
As you prepare to find
these lenders, it is practical to stop and consider just who they are and how to
reach them. You want to attract people who have the means to step up and
take action on your program.
When I decided to work with private lenders, I wanted to go beyond just my
circle of friends, I wanted to reach others as well. My challenge was to
determine common denominators and find a way to effectively reach those
people.
I knew the kinds of
individuals I wanted to reach were financially savvy and could appreciate the
generous interest rate I offer.
I
found out that I could get an extremely targeted list of names of potential
lenders from a list broker. You can find the name of a list broker in the
phone book or on the Internet. The one I used was Dunhill's. You can
tailor the list almost any way you want.
I thought a lot about this then requested the names, addresses, and
phone numbers of people who met the following
criteria:
A.) They were
located in our county.
B.) They owned their own home.
C.) They bought items through the mail.
D.) They owned bank Certificates of Deposit (or CD's).
Let's look at each one on this list for just a moment and I'll explain the
logic behind my target choices.
A.) They were located in our county.
I wanted to focus on my local market because it was likely they already knew
about me from my other marketing efforts:
They'd seen the 'I Buy Houses' signs for years. I sponsored Little
League teams and so they may have seen the t-shirts with 'I Buy Houses' and my
phone number on the shirts. They may have even read the newspaper articles
the local paper had done about my company Integrity Home Buyers, Inc. and me.
When I specified this criteria, I believed the lender would
be comfortable loaning to one of their neighbors.
Also, some
of my current lenders seemed to delight in being able to actually drive by the
house on which they held the mortgage while I was having my crew do the
work. They seemed to feel safe knowing exactly where their money
was. They liked being able to tell their friends, 'My money is in that
house right there.'
B.) They owned their own
home.
People who own their own home, are probably already aware of what a great
investment real estate can be.
C.) They bought items through the mail.
I reasoned that if they bought things through the mail, they would take time
to read things sent to them through the mail. And, one of our primary
marketing tools was a
postcard.
D.) They
owned bank Certificates of Deposit (or CDs).
These people obviously had available money. With the banks paying a
pathetically low rate on CDs this made my program that much more
attractive.
So I got my list of
targeted names. I mailed postcards to those names and invited them to the
luncheon.
They could also request
information and we would send them our professional
'audio business
card'.
We didn't have a tremendous
crowd - we didn't need one. It wasn't the number of guests so much as the
number of guests in our targeted market who could take advantage of our
program. We targeted our market correctly and have had awesome
results.
Two luncheons and I had $1
million dollars to go buy houses with.
I wish you much success.
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