I have received a number of email questions recently on
very similar issues and thought I would address them as a
group versus individual emails. The questions are broken
down into general areas and include things to do and things
not to do. The Don'ts include advertising on Craig's List
and the use of the word "Guarantee". The Do's include what
are the best marketing methods. My comments on each are
below....
Don'ts
Advertising on Craig List - I do not recommend that you
advertise on Craig List. It is too public and there are
state and federal watchdogs looking for people who may be
violating securities rules. I have said on many occasions
that I do not recommend any advertising that is on a
national scale including your own web site. This kind of
advertising will get you into trouble with securities
regulators and may be considered a securities offering to
the public.
I know this from personal experience. Several years ago a
person responded to my Craig's List ad requesting
information about my investment program. After several
emails, the individual said he was ready to invest and I
directed him to my title company to prepare the appropriate
documents. Strangely, I never heard from the individual
again after that.
A short time later, I received a "cease and desist" letter
from the Pennsylvania Securities and Exchange. The letter
had several direct quotes from the emails I had exchanged
with this individual. The State did not fine me, but asked
that I never advertise on Craig's List or on my web site.
Needless to say, I am complying.
Guarantee - Do not use the word "guarantee" in any form in
any of your advertising. Do not use the word "guarantee" or
ever imply that somehow your investments are "guaranteed".
This is a sure fire way of attracting the attention of the
wrong people. You may say your investments are secured by
real estate, which is accurate, but do not use the word
guaranteed.
Do's
Schedule at least one breakfast meeting per week - This
simple advice might be the best and almost certain way to
attract large amounts of capital. Schedule a breakfast
meeting every week with someone who has extra cash
available and is interested in your lending program. You
will not get everyone to invest, but the chances are you
will get enough to support a reasonable real estate buying
business. At these meetings, be sure to ask the person for
the name of at least one other person they know who might
be interested in your programs.
Hand out 5 to 10 business cards per week - Again, this
simple but very powerful advice will ensure that you have
plenty of people on your prospect list. These are the
people you have breakfast meetings or schedule a group
meeting with. Everyone you come in contact with may be a
potential lender. Do not overlook people just because they
do not fit the perfect profile. You would be shocked that
people that you would never think of as investors may
become one of your best clients.
----------------------------------------------------
Mike Lautensack is a real estate entrepreneur and creator
of the Private Lender PowerPoint Presentation Kit. This
kit is loaded with tools and techniques to attract a
consistent stream of private investors. To learn more
about this powerful step-by-step kit go to
http://realestatewealthtoday.com/index.html
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