![]() ![]() Attend industry conferences and seek out those who have achieved success and follow their advice. The books you read, the seminars you attend, and the videos you watch will help you to master the disciplines you need in order to succeed as a private lender. The best investments you can make are in yourself and your business. The universe will reward you if you selflessly refer to other brokers those leads which don’t fit your niche, and you will create goodwill and karma. There is no way for every agent to get paid without over-charging the borrower. If you have an applicant for a loan that is out of your area, expertise, or capacity, refer the prospective borrower to a reputable private loan originator. In your private lending practice, one secret to success is that you rarely broker loans to other brokers. Your authenticity and transparency will attract customers to you in a big way. On your website and in your communications make sure that you include your company name, your personal name, your physical address, personal pictures, and email addresses for all the world to see. In this like most all of life and business, honestly truly is the best policy. Advertise honestly and make sure borrowers recognize how honest you are with what loan types you offer and what areas you serve. Don’t say that you are “nationwide” and you fund “all loan types” and loan amounts. Be laser-focusedīe specific in your advertising and marketing. Larger loans fail to close at a much higher rate than smaller loans. You can charge more points on smaller loans, plus the fees. Besides that, your private lending practice can earn more in fees by doing five $50,000 loans than one $500,000 loan. If you are just starting out in your private lending practice, you will quickly learn that starting small is so much smarter than jumping into big loans as a beginner. Start small and build your book of business Be honest with your referral network about this amount. Discover your standard loan amountįind out what amount of loans the majority of your investors range from and market this range as your niche. By choosing this secret to private lending practice success, you are only dealing with who you know and where you know. You will succeed in funding loans because you are a local expert and you understand your local marketplace. One great litmus test for your loans is keeping them within 100 miles of your office. ![]() It has been proven through the study of hard data that the private lending business model is most successful when focused locally. The tips we are presenting below can also apply to improving your current private lending practice. If you use these tips wisely, you can almost guarantee your success. If you have been considering starting a private lending practice, we'd like to offer the following tips from the Rules of Thumb blog and MoneyThumb. ![]()
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