We’ve all heard the saying, “give a man a fish, feed him for a day. Teach a man to fish, feed him for his life.”
Well in my book, neither of them, by themselves is a perfect solution. If you give a man a fish, we all know why that is just a temporary solution. However, if you only teach that man to fish, and you don’t feed him now, he may starve before he actually gets to benefit from his education.
The same thing applies to private money.
There are 2 types of private money.
1) Personal Private Money: This is someone that you actually created as a backer. This is someone who you trained, who you built a relationship with, who basically only deals with you.
Now, this is the ideal private lender, because he is doing these deals based not so much by criteria, but by you. We’ll call him your “fish for life.”
The issue with this kind of lender is, there are no shortcuts. You have to put time in. You have to overcome objections. You have to get past the why’s and the what ifs. Bottom line is, this could take weeks, months, or even years, in the meantime, unless you have another source, you are losing deals.
2) Public Private Lender: This is a professional private lender. (Still trainable in many cases) this is someone who most likely lends to multiple borrowers, sometimes through a broker, sometimes individually. This private lender has been through the why’s and what ifs. He is already seasoned and in many cases is hungrier to do deals than you are. You won’t have to overcome his/her objection or “why” to real estate. You will have to get past the “why” real estate with you.
It is definitely feasible to have them funding you within your first 30 days of contact. We call this guy/girl “fish for now.”
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