It is important that you understand that attracting private money and the SEC compliance regulations go hand-in-hand. You must know the rules in your state.

One of the rules is when you can and can’t advertise. You can’t advertise for private lenders unless you have registered with your states division of the SEC.

Therefore, any of the answers below that deal with advertising, you must understand the SEC rules to be able to advertise.

I’m not an attorney nor can I give legal advice so all information I share on the SEC is from my SEC attorney.

A. Private Lending FAQsB. Group Presentation FAQsC. General FAQs
1. What are the four best methods for someone with no private lenders lined up to acquire them and how would you go about each?
2. How do you target the people that you perceive as lenders?
3. What interest rate should I be paying?
4. Once you have a verbal commitment from a lender to loan, how do you secure his commitment?
5. What if anything do you supply a private lender with prior to them giving you funds for a deal so that they know it's a good deal minus the paperwork?
6. Do you have a written agreement between yourself and the lender?
7. What paperwork is needed between the borrower and the private lender?
8. Who draws up your agreements that you use with private lenders when you do a deal with them?
9. Do you establish terms and payback timing on these terms?
10. What's an example of the terms you must include in your agreements?
11. Is there any paperwork we the borrower should get?
12. What paperwork gets notarized?
13. Once you receive a financial commitment from a lender, how do you set up the account so that you ensure the cash is there at closing?
14. Do you set up different accounts for different lenders or commingle funds?
15. How often do you, how do you, provide an update of interest earned to your long term private lenders?
16. A lender gives you $10,000 to invest, what is the tax impact on this investment to you or how do you avoid paying taxes until you have bought and sold the property for a profit?
17. Once I have achieved the funding that I require, do you charge other real estate investors to use my excess available funding?
18. Who is the ideal person to invite to a Private Lending Presentation?
19. How do I solicit people to come to a presentation, personally invite or a mailing?
20. What would you say exactly to a prospect you want to invite?
21. Who do you recommend attend your seminar?
22. Who did you send the postcards to?
23. How would you buy a marketing list?
24. Did you contact a list broker?
25. What parameters did your list have?
26. What was the cost per name for the list you received from the marketing list?
27. How many times did you mail your postcard for a scheduled seminar?
28. What was your response rate to the postcard?
29. Do you advertise in the newspaper?
30. The people who attended your seminar how many of them committed to lending funds?
31. What was the average investment they made?
32. I don't have a lot of credibility to convince the lenders to give me money. What do I do to alleviate this problem?
33. What else can I use to beef up my creditability kit at the lender luncheon?
34. What do you wear to host a luncheon?
35. What is the reasonable number of people you want at each luncheon?
36. Did you make any SEC filings or Department of Controller or corporate filings?
37. Besides having the private lending luncheons how can I find private lenders because I'm not much of a public speaker or speaking in front of groups?
38. As a new investor I run across situations where I can help some home owners by offering them a loan with a private lender. Do I need a mortgage license to put the deal together and collect a fee for myself?
39. How can I buy more deals with less competition than regular auctions and foreclosures?
40. I'm looking for commercial lending do you get involved in this?
41. I'm looking for the best solution to fund a church purchase.
42. Do you have students in Canada?
43. I have great systems in place that work that are not currently being used in the market. Can you help develop an audio CD course to sell? I would also like to speak in front of groups.