Let's face it, the reason most investors don't have any private lenders is fear. It's as basic as that. It's a fear of the unknown. How do I know that? I've been there too. I was comfortable doing things the way I had always done them. I went to the bank, I jumped through their hoops of proving I was qualified for their loan, they gave me the money, and I paid them back the way they said. It was a familiar routine in my business of buying and selling homes.
However, when I became a full-time investor and wanted tons of quickly accessible cash, the bank's painstakingly slow process was no longer acceptable.
Even when I knew for certain what I wanted, I procrastinated. I was not able to do nearly as many deals as I wanted because I waited so long to take action. The thing is if there is something you are afraid to do, you can always find a reason to not do it.
Sometimes we won't even admit to ourselves that we are afraid. We just can't get to it because we are too busy, too tired, or focused on other “more important” issues.
But then, that didn't solve the whole problem. I was still too shy to approach people who I knew would benefit from my program.
I remember sitting in my doctor's office and being too uncertain of myself to tell him about my program. I didn't have the nerve to ask for the money. That day, we both lost. I wanted money to run my business and he missed out on earning a tremendous interest rate.
Once I recognized what was holding me back, I became educated in learning how to get what I wanted and how to handle private funds once I got them. That gave me the foundation of knowledge.
I am so grateful today that I got a solid real estate education so I can now confidently let potential private lenders know that I have a great opportunity for both of us