Private Lending Made Easy – Advanced Wealth Management System

PRIVATE LENDING MADE EASY – ADVANCED WEALTH MANAGEMENT SYSTEM (Than Merrill and Alan Cowgill)

THAN:
Welcome everyone its Than Merrill here and I wanted to welcome you to tonight’s webinar. I got an awesome awesome guest with me. His name is Alan Cowgill. And he is out of Ohio. Does anybody live out there on Ohio? I know we got some people out on Ohio but are there actually people out there on Ohio Alan?

ALAN:
There is there is. There’s a bunch.

THAN:
Good. I just wanna, I just wanna make sure. I haven’t been to Ohio in a little while. I got quite a few investor students actually from Ohio that I like to pick on so I, I will include them in every call here but I just wanna welcome everybody first and all. Thank you for being on tonight’s webinar. It’s gonna be an awesome webinar. I’ve been getting overwhelming number of emails to cover this topic private lending. And I really felt like it would be better to bring Alan on the call because he’s the person I learned about the private lending niche in the sector and how to use it as a real estate investor. So I just wanna thank everybody personally for being on tonight’s webinar. You’re a very valued client of ours. And I wanna thank you Alan for spending the time with us tonight.

ALAN:
Well I’m tickled and there’s probably not a better time in the world than right now to be talking about how to get the money to fund your deals.

THAN:
I mean you’re right about that. I mean the number one probably, the number one and number two question I’m always asked is how to find the deals and how to get the funding. And so we’re gonna cover how to get the funding tonight and I’m just gonna give everybody a real brief background. I have a tendency to talk a little bit too much but everyone and all my students are used to that. But I’m gonna give you my personal background and involvement with Alan. Alan’s actually the one that I learned this aspect of business from when I was getting started buying and selling homes. You know we started buying using some of our own capital, which was a huge mistake. And we got tied up very very quickly. And that’s when I actually ran into Alan. I heard him at a seminar. Invested in his private lending course and my business partner Konrad, Paul and I we all sat down and we said you know what we, we have to 100% commit to raising private funds if we’re gonna be doing a lot of deals. And so you know he was the person I learned from and I always have a certain amount of respect to bring those people back so that they can give back to my students as far as well you know and teach them their aspects. So to give everybody an idea Alan you know he’s the owner of Cowgill Properties and the president of Integrity Home Buyer’s Inc. And he’s a fulltime real estate investor. He invests in single family, small multi family properties. And I also know he does pretty much every niche of investing when it comes to real estate. Located out of Springfield, Ohio. I won’t hold that against you Alan in any way. I know there’s a lot of, I know folks out there are probably loving you so it’s great to have you on the call tonight. Just to give everybody an idea of he’s experience, you know Alan’s sold hundreds of properties, investment properties. And he’s really known in my mind as the king of private lending. and he uses private lenders and not banks. And this is you know the real thing that I wanna emphasize here to fund his real estate deals and over the years I know he’s created his own private bank of well over two million dollars in funds to fund a lot of these deals. And it’s just been a great relationship that we’ve had. It’s been a pleasure getting to know him. A couple of fun facts I like to point out he has a business degree in management, is that correct?

ALAN:
That’s true. Yep.

THAN:
Now the question is do you use that in the real estate business in any way. That’s what we need to know here.

ALAN:
Not a bit, no. Nope.

THAN:
It’s funny I was a political science major and that didn’t really help me too much in the real estate industry in any way but I’m sure business management is a little bit more geared to it but you know I just wanna give a personal endorsement to Alan because I’ve been getting so many different emails from students saying you know, “I don’t have enough funding.” You know how they’re borrowing hard money and they don’t have any private lending to make it up, you know make up the balances. And so he’s really gonna go out and give you an idea of how to find these investors, how to use them within your business to buy houses because for me I mean this has been our main source of financing and we owe it all to Alan and he’s teaching early on and getting a start and so Alan why don’t you enlighten us tonight and give us a little bit of background on how you got started in the business.

ALAN:
Oh that’s awesome and I’m here for one purpose and one purpose only and that’s to get more money into everybody’s bank account ’cause I love making things a win-win situation. And you know Than you said you got started using my system and the interesting thing that’s happening to me is I do a number of teleseminars just like this and webinars and when I do that, so many times folks that ask me, invite me to be on the call are just like you they’ve got my system and they’ve been very successful with it. So I appreciate you doing that and saying that. Well just what I’m gonna talk about is where to get the money. How you can get all the money that you need to buy a commercial buildings, apartment complexes or single-family homes, which is what I do. Or even luxury homes regardless of your credit or financial situation. I know there’s many folks listening and watching that are getting started and needs funding for their deals and other folks might even be using their own money in the deals. What I’m gonna show you is who should use private lenders. If you’re a beginner out there maybe you’ve never done a deal or you’ve done 1 or 2 deals and when it comes to finding the funding for your deal, you hit the wall. And if you’re an intermediate real estate investor you can do a handful of deals and the lending institutions will shut you off. How do I know that one Than? It happened to me. So a few years back I’ve done a handful of deals and they shut me off when I was doing business with banks. And then if you’re an experienced real estate investor there’s actually a better use for your money than stick it in the properties and I’m gonna talk about that. I’m gonna train everybody on the best, the easiest, the cheapest and the safest way to fund their real estate deals. Ain’t that what we’re all looking for? True.

THAN:
That’s exactly right I mean we, when we started to search we went to banks and they shut us down exactly and we had to turn to private lenders. It was the best niche that we had to go out and search to find money so you’re exactly right.

ALAN:
Well you asked me to tell you how I got started and so let’s do that right now. I was working out in the corporate world. I’ve got a quarter century in working in corporate America. And as I was climbing that corporate ladder, one day I realized I had the ladder against the wrong wall. I heard that 92% of the population retire at poverty level. After working a J O B all their life and I’ve actually seen that happen to some of my family members. And I realized that my life wouldn’t go on the way I thought it was, or should’ve been going so I was broke. I was living in this little dinky 2-bedroom apartment and I realized that that I needed to desperately change something. I couldn’t pay all my bills and that kinda let you know what I was living through. This is back in 1995. I had this old beat up car and I knew I needed to put some money into the thing but I couldn’t afford to get it repaired and one night it paid me back on our first date. I took this lady home and parked in front of her apartment complex, I was walking her to the door and I turned around my car burst into flames.

THAN:
Oh that’s how I kill the magic of the night.

ALAN:
Yeah you got that, you’re thinking hot date right you know more like first and last date. I was standing holding her hand watching the fire engine zip by me to put my car out. Every morning she got up and remembers that date was the burnt charred mark in the parking lot where my car had been. You know kept me frustrated with my life and I desperate to change something. I decided to invest. And I took my whole federal tax return in February 1995 and plunked it down on Ohio lottery tickets.

THAN:
How’d that work out for you?

ALAN:
That wasn’t a good plan at all I lost on every ticket. Kept me frustrated, one night I couldn’t sleep and I was up channel surfing it’s 2 o’clock in the morning and I hit one of those real estate infomercials.

THAN:
Yup, we’ve all seen them.

ALAN:
We’ve all seen them and the com got me that night and I didn’t have the money to buy a home study system though because I spent my money that day on lottery tickets. But they take credit cards so 2 in the morning I pick up the phone and I ordered that home study system and became enthralled with real estate. In that year 1995 I bought 2 properties, then 5 the next year and 18 the following year. Roll the clock forward I bought and sold hundreds of houses and half of those are without monthly payments. I wonder everybody is thinking about having a million dollars loaned to you and you don’t have to worry about monthly payments. Than would it be okay if I teach everybody that technique tonight?

THAN:
I’d think that’d be phenomenal. I think that’s what everybody wants to know is how to get all the deals they can funded so.

ALAN:
Yeah I mean I wanna teach a number of things. In fact I’d encourage everybody right now if you don’t have one is to go get a pad and a pencil because one of the things you’d find out in in my training. I give out so many concepts and ideas and life changing ones that you need to start taking notes and right now is the time. But you know one of the things is people worry about all I go out and make an offer if I get approved hoe am I gonna fund the thing. Well I’m gonna solve that problem tonight and then I’m also gonna solve a number of other problems on cash flow and this is a huge one right here that many of my students just love to where you can have money loans and where you don’t have to worry about monthly payments but you need to know the techniques and that’s what I’m gonna teach. You know I wanna be serious extremely serious for just a second and that when I look back in my life you know when my car burst into flames and I bought those lottery tickets and I wouldn’t be able to pay all my bills. You know with a bunch of humorous failures going on you look back on them, you know it’s pretty painful time and that’s not the way we wanna look at our life if we wanna look back at our life and see unmitigated successes then the foundation of this business is education and I applaud everyone for being on the call tonight and Than I applaud you for making this thing happen because people need a solid education in real estate. And also as you look at things it’s all about choices you know Than it was your choice to have this webinar. It’s their choice to be on the call and I want everybody to think about the choices they’ve been making in real estate and especially the one on funding which is what I’m gonna talk about. Let’s take a look at some of the financing I’ve tried out. I start out like most folks and went to banks. And the bank was friendly to real estate investors but one day the regulators came in looked at the books and said to the bank, you can no longer do those type of loans to real estate investors and it shut my funding off instantly. And that was the only place I was getting loans. And I don’t know what I was gonna do so I thought about it well I went to get a line of credit. And I got a hundred thousand line of credit. Might seem like a lot but it’s not in our business. And you max it out you shut your own business down and every year they can call it due. Then I went out and I got hard money lenders and then some people listening I know, if you were like me coming up you think private lenders and hard money lenders are the same but they are distinctly different. And I’m gonna explain that here just a second. So just hang on. But the bottom-line for those of you that are watching the webinar. The bottom line you can see the boxes at the bottom of that slide is it’s not in control of my financing. Folks you are not in control of your financing and if you’re using any of those techniques I just described out there banks, line of credit, hard money lenders. But my goal tonight is to put you in control for the first time in your life, put you in control of your real estate finances. And by doing that through private lenders. Let’s talk about what most of you are doing and how I started out is you’re at the mercy of banks. In fact Than I speak all over the nation I spoke 54 times last year all over the nation I spoke into Canada. And what I find when I take surveys is 85% of my audiences consistently are going to banks. Well look at what they make you guys go through and lets just see if that’s a good decision. Actually its one of the worst decisions you can make because first off you can lose some of the best deals ’cause someone with all cash comes along and buys them out from underneath you. Banks want money down. Typically it’s 20% they don’t finance a hundred percent. Banks charge points and loan fees and granted they are not high but they still are they’re eroding your profit base. They won’t finance unusual deals. In fact I’ve got deals they wouldn’t have touched but I made a ton of money because I had the power of all cash through private lenders. They like monthly payments. And I told you have of your deals, my deals I do without monthly payments. I’m gonna teach you guys how to do that in fact you can actually use this techniques to have a hundred percent of your deals without monthly payment. Banks take time, you have no relationship with the bank but you think you do. Its the interesting thing you lulled into a sense of security that you think you’ve got a relationship with the bank you’re just fooling yourself you don’t. You got somebody’s business card and their name and you think you got a relationship but that person can retire, quit, get laid off and you gotta start all over again. You don’t have a relationship you’re just fooling yourself. And they change the rules like they did on me you’re disqualified from borrowing when you have too many properties. Well what’s wrong with that picture? You know you folks are on this call to buy properties ’cause that’s how you build your wealth. But what will happen to you if you’re doing business with a bank, they’re gonna shut you off if they, their mind they think you got too many properties. You got poor credit, banks aren’t gonna touch your income then satisfy gonna bank not gonna touch you. But the biggest economy of all is so many of us myself included, we get into real estate to get out of our J O B. But the day you quit your job is the day the bank is gonna quit you. What kind of business plan is that Than?

THAN:
That’s exactly what happened to me when we started started buying. You know my partner got a steady income stream and he quit his job and I had a steady income stream and you know we just decided clod turkey we’re gonna go out there and quit and I seen it to happen in so many investors then all of a sudden their bank financing it’s gone. If you don’t have another source you know I hate to say it but you’re screwed.

ALAN:

That’s right and that’s what happened to me too. That’s exactly what happened to me. I was doing business with a bank and I thought that was way to go it was my comfort zone. And in reality it was the worst thing I could do because the day I quit my job the bank quit me. And put me into a huge turmoil I’ll explain that to you here in just a second. It was a painful thing and I don’t want anybody whose listening right now to go through what I went through. I’ll explain that here in just a minute. Banks cost you time. I wanted to buy a duplex. And this is back back when I’m doing business with banks. I got great credit they went and appraised okay. But the bank wanted to think about it. It took them 4 and a half months. 4 and a half months to okay the deal. You know that was crazy. Who was in control? The bank was. Today what happens is I get an offer accepted on a Monday I can own the property on a Friday. How many folks like that plan. Yeah you know ’cause I’m dealing with all cash from private lenders. You know just think about the process of getting a loan from a bank. What do they put you guys through?

THAN:
A lot of hoops.

ALAN:
Yeah you jump through bunch of hoops don’t you. You got pay stubs and a couple of years tax returns and leases if you got ‘em and they’re pulling your credit report and asking for all these documents. And you drag all this documents down to the bank, then you go back home and wait. And wait. And finally the phone rings and they lost some of your paperwork and so if you gotta get more paperwork and take it back down to ‘em. Let’s make a success story finally. Let’s say you buy the property, you get the loan, you buy the property with the bank’s money. And then fix it and sell it. And then the bank, and then you want another loan the bank does what to you? You got to do it all over again. Don’t you guys hate that? Let me show you a better way. Here’s a better way. I borrow money from a private lender. I buy and fix the property they get their principal and accrued interest back and then I get a phone call. And the private lender say, “Hey I got my money back I didn’t want my money back I wanna get high-rated return. How do we hit this thing moving again?” You see when you sell a property using private lender’s funds, you have just created your next loan and they’re begging you to take the money and they are fooling with all that paperwork. That’s a better life isn’t it? That’s my life. Yup that’s my life.

THAN:
In fact the funny thing you say that we started using your system and one of our first loans we got a private lender in our local area. And I got a pay off letter from him we we’re just getting ready to sell the house and he said, “Don’t pay me off, I don’t, I don’t want that money back.”

ALAN:
I don’t want the money back. Yeah.

THAN:
I don’t have another deal for you right now. He’s like, “Figure out a way to keep it.” I was like, “I gotta send you your money back this closing but I guarantee I’ll find a house pretty soon for you.”

ALAN:
You did a smart thing. In fact I you know I told you guys to get a pad and pencil here a little bit ago. I always, I don’t want you guys to touch the money before the closing to buy and I don’t want you to keep the money on the closing yourself. And here’s why, it’s because there is some rules and I’ll share this with you today. and one of the rules is if you tell your lender that your property’s gonna be back by a mortgage and then you keep the money but in the gap what I call in the gap between the sell of one property and the purchase of the next. Then their money is not secured and you’ve actually mislead your lender. You’re not allowed to do that. So I want you guys to give the money back but what’s gonna happen to everybody whose listening is you’ll sell the property in just exactly what happens to me and what Than had happened to him is the fact that the lender will beg you to keep the money.

THAN:
It’s true.

ALAN:
And it’s unreal, unreal. It’s a great life you know we got into real estate to have a great life you know why not have one of the key processes in all, on the whole real estate business make your life easy. You know there’s only 4 elements at the very top level of a real estate deal. Number 1 is you gotta find the property, number 2 you gotta fund it, number 3 is you fix it, number 4 is you eventually sell it. Well you know the biggest fear is just like Than said the biggest fear of an, biggest question he gets is he says is either number 1 or number 2 question when we got started here tonight was how to fund the deal. And if people can’t get over that what I mean it shuts the show down so let’s look at another option. Some of you guys are listening out there and using, on this is using private lenders. Oh I’m sorry hard money lenders. You know 85% of the audience right now is probably going to banks while the other 15% out there is either using hard money lenders or private lenders. Well the hard money lender you know makes you fell like they’re squeezing you die. Let’s look what they do to you. Number 1 is they wanna have a down payment. Let’s take a look at this example of a hundred thousand dollar deal. You wanna borrow a hundred thousand. They’re gonna want you to have some money in the game. They’re gonna want you to put 15% down at least mine did. What I got up on the screen right now is what my lender, hard money lender did to me is they want a 15% down so a hundred thousand dollar deal I had to take a wheelbarrow full of money in the closing to buy to the tune of 15 thousand dollars. Then the hard money lender want it paid back in 12 months I limited my exit strategy I couldn’t put anybody in the property. The hard money lender wanted points which is 5 points, what mine charged which is a percent of the deal so the same example as the hundred thousand. I had to come up, 5 thousand dollars came out of my side had one the day I bought. Now I’m looking at had one state when I did business back when I was hard money lenders and compare them today to private lenders. I could remember looking at hud one where I had five hundred thousand dollars coming out. What happens today is with the private lenders I only have $875 coming out. There’s an extra $4000 of profit that the hard money lender will be getting that today its my money. It doesn’t come out of the closing state. You’ve got a good credit? It didn’t used to be that way pendulum has changed it used to be just the profit when I got in the business back in 1995. Now what happens is that the property and the credit, your credit have to qualify, you gotta cough up some of your cash for renovations. And what happens is when you walk out of a closing with a hard money lender to buy a property to walk out you get the key. When I walk out using a private lender I not only get the key but I also get a fistful of cash to go start my renovation. But you guys are using hard money lenders and so many people gravitate from banks into hard money lenders ’cause they don’t understand private lenders and how easy and successful you can be using private lenders. They start using hard money lenders and its hard to work with them because of all the money that they take out of your pocket. Well one of the things about hard money lenders that they will escrow money for the renovations. The problem is when you walk out with just a key to the property you gotta start the renovations by digging into your pocket again after you were taking in this big down payment. Start the renovations, bring it up to a certain level, call up your hard money lender to get some of your escrow money well they’re gonna send in an appraiser that you pay for to approve that you’ve done the work and then they’ll start releasing the funds. There’s a better way now I gotta tell you I don’t have anything against hard money lenders at all because I am one. That’s right folks I do those things to other people. I told you not to let people do it to you. That’s pretty cool and you see I borrow money from private lenders but I loan money out as a hard money lender. And I think some of you gotta think about that ’cause you can start a second stream of income like a lot of my students do by loaning out the money. So let’s talk about what a private lender looks like. Let’s shift gears what does a private lender look like? Well my first one look a lot like my mom because she was. Yeah but it was my mom what happened was I was getting my real estate education just like you folks are right now and going to seminars and getting home study systems to hone my skills and heard this thing about hard money lenders and private lenders and I thought they were the exact same thing and they aren’t. They are distinctly different. You see a hard money lender sets all the rules that I just gave you. But a private lender doesn’t. A private lender don’t even know those rules in most cases and they let you as the real estate investor set the rules and that’s what I did with mom. I went to her and said look you came into this money when dad passed away and what she’d done is come in to some insurance money and she put in on a bank certificate and deposit it like most people would do. And she knew she got to live off this interest the rest of her life. And she would drive 45 minutes one way to get an eighth of a point of a CD ’cause she was pretty desperate to protect that principal. Well I went back to her and said, “Look mom you’re getting this paltry low return on a bank CD how about if I pay you 3,4,5x what you’re getting on a bank CD. And I’ll pay you monthly just like the bank does on the CD. You get a monthly check from me and I’ll even give you some documents to help secure the loan. I’ll give you a mortgage on a property, a promissory note, hazard insurance, lender title insurance.” And mom jumped for joy thinking about that going from paltry low insurance CD towards she can get something that gave her a phenomenal return. And we can do that as real estate investors. And what I did was I went out ran an ad and I got a second private lender. Kind of embarrassing though, I went to his house, sat at his kitchen table, he pounded me with a bunch of questions and I couldn’t answer but about half of ‘em. But I didn’t think he was gonna loan me down but when I walked out of there he agreed to loan me $5000 and I know that doesn’t seem like a lot but it was to me back then. Besides what I did worked and the logical thing would be to do it again. The only thing was I had this J O B and I was using banks and that was my comfort zone and I put this thing on private lending on the bank burner and it took me another 4 years to get my next private lender can you imagine the wealth building that I lost? It was huge. It was huge. So what happened then was I finally got out of my job they had a lay-off and I volunteered. They were looking for volunteers ’cause they offered a company package and I took it. I took the package and quit my job. The only problem of it is my timing was terrible because there was a down turn in the rental market, I had to evict some folks and I ran into a negative $10000 a month cash flow. Banks wouldn’t touch me you see I’d hit the wall when it came to funding. Anybody out there afraid of making offers for fear they’re gonna get accepted?

THAN:
That was you.

ALAN:
I was at that point. You’re looking, staring at $10000 cash flow property you feel like a person with your feet in cement. So I needed to change something I though back about mom and about Ed the second private lender. I realized that my way out of this quagmire was to get private lenders and get ‘em into my life quickly. So I can start funding my real estate deals. The problem is the people that taught me to get private lenders would tell you to go get ‘em but they wouldn’t tell you how. You think the how is kind of important?

THAN:
I think it’s probably one of the more important things.

ALAN:
You got that right.

THAN:
You’d be out there raising money.

ALAN:
Yeah. They didn’t tell me how to do it. See there wasn’t a road map back then. This was back in 2001 there wasn’t a road map. And I had to find the road map and I also wanted to leverage my time so I found a road map and that’s what I’m gonna teach everybody. Fortunately I found the road map and that’s what everybody’s gonna get. Here’s how I did it. You guys wanna start taking notes. What I decided to do on leveraging my time was get a bunch of potential private lenders in front of me all at once. And I decided to bribe ‘em with what I called a lunch. I buy everybody lunch and so I set out some post cards and I ran an ad in the paper and I didn’t know, and I put together a PowerPoint slide presentation. What I didn’t know when I showed up was I was gonna be alone in that room of 30, 50 in there and what happened was fortunately for me, and this is pretty typical I had about 8, I had 18 potential private lenders show up for this first luncheon. I got up in front of ‘em and I told them about my mom and Ed loaning me money and I told them about my real estate business and I told them about my dreams and my aspirations with the real estate business and I showed them this slide presentation. I put together a powerful 37-slide presentation that, PowerPoint slide presentation that explains what my business was all about and I just flat out asked them to loan me money, and it worked.

THAN:
Its amazes you what you can get if you just ask them.

ALAN:
If you just ask, that’s right.

THAN:
There’s so many, so many people that are wondering about money and that, you know you gotta have a strategy a system and unfortunately you just gotta go out there and implement it, you gotta put it into motion and the money will come at you, you know after what Paul and you have taught me and listened to your different system and you know, I mean its, I just gotta go out there and do this. And we started doing it and the money started coming in and I started referring other lenders and it just spiraled and pretty soon you have more money and your business is complete insulated from risks, its phenomenal.

ALAN:
Well it is, it is. Actually, actually what happened to my business is I had so much money coming in I had to hire somebody to spend it for me.

THAN:
Hopefully you’re investing it and spending it the right way. But you know.

ALAN:
Well, what happened was I realized that I was the bottleneck on getting houses bought.

THAN:
Yeah.

ALAN:
And so what happened was I found a guy that uh, worked at the company I used to work for. And he wanted something different in his life and so he had only bought two personal residences before. He came to work in mid September in the year that he hired in, came from mid September, and from mid September using my private lender money and my buying techniques. He bought 23 properties before Christmas that year.

THAN:
Damn, that’s a pretty good hire right there, with acquisitions.

ALAN:
Yeah. Think about that I mean. I had so much money I cant get it all spent because my techniques work so well.

THAN:
Yup.

ALAN:
And what happens in this luncheons, just to give everybody some idea, this two luncheons, I had 18 folks in the first. I had 12 in the second. A couple of months later I sat down with a pad and pen and added how much money they had loaned me and I had a million dollars to go buy property. A million dollars.

THAN:
That makes life easy when you know, that’s the number 1 thing that lots of peoples businesses fails, they, they don’t have enough liquid capital and an opportunity will come and they have to pass on it. We had you know, just a personal experience, we had a $500,000 commercial properties that we could have bought and 17000 square foot commercial property came our way off for our marketing and it came our way in the fifth month of my career and I had to pass on it because at that time when I have not met you and I did not have lenders set up. And that property sold, sold, sold a year and a half later for $1.8 million. And I know that if I had been liquid I understood it was a great deal I just, I didn’t have the financing lined up and I couldn’t pull the trigger and I had some and I had to add lenders you know we would have been over a million dollars richer. And that’s one example, one example of the power of private, you know, having the power of private money and not having the power private money.

ALAN:
Oh yeah and I hear, I hear so many situations where people that used my system, you know capture those deals, that you lost out on and become millionaires because of it and it really it just really is heartwarming to see what happens to some folks. Today I have more money that I can possibly use. In fact I’ve got so much private lender money I don’t need anymore. I’m the guy out there known as the guy that cracked the code on finding private lenders and everybody listening can do the same thing just by just learning a few simple techniques that I’ve done, you know how many folks out there like an army of people begging you to take their money. The type of deals you can use private lenders on is commercial deals and apartment complexes and some of my students will use the money for the whole deals or what they’ll do is use it for the down payment money and have a commercial lender for the rest of the money and, you can also use it on luxury homes and what happens in luxury homes is many folks are afraid of taking one subject to where they’re gonna deed you the house because of the big monthly payment out there and what my students do is they take the house and then they borrow six months of payments from a private lenders put a second mortgage on the luxury home and do the deal and if they need fix up money then they go again and borrow that too because people will buy luxury homes and want them in one in pristine condition not fix her uppers and my type of deals are single family houses where you get them subject to and you can bring the payments current or pay the seller to move and I’ll give you an example of some of those. And ugly houses where you can retail them, buy and fix them and retail them or you can hold them with landlords out there when you struck on a deal property you can create a, money machine by holding the properties and then wholesale the deals. So many folks are taught to get a property under contract and then you sign that contract and then and that’s a great way to go, nothing wrong with that. What happens if you come up against, the date though and you put some earnest money down and then the seller wont move the date and you don’t have a buyer you can lose that wholesale deal. What I do is if I see that happening I just go ahead and fund it with private money, I don’t have to worry about the date and then I’ll wholesale it after the fact. And then short sales which are obviously rampant right now in the industry, wanna show you one of my deals. This property that you’re looking at there’s a $200,000 property in my area. And everybody else here in the United States use a half a million dollar home its on 5 acres there’s a pond out front, there’s a stream and a pole barn and a stable in the back of this property but in my area its low in fact, a luxury home for me Than is one where I buy home and need to put a toilet in it. I mean, hahah, that’s the kind of property I’m dealing with here. Well there was a first and second mortgage on this and, as you know in a short sale the goal here is to try to discount those mortgages, well the first mortgage was pursued for foreclosure, they wouldn’t discount. But they said if you pay us $14000, which is to cure this thing what we will do is a, we will stop the foreclosure so you can start making payments one it. Well it was not a good deal, second mortgage though they’re in trouble $44000 second they know that they’re gonna be wiped out, they wanna get anything, anything they could to save face and when I negotiated with them, they agreed for $4400 they would consider that satisfying I knew that in a nanosecond I had a great deal. I just needed to come up with $18400 and I did, obviously, I wiped that second out, cured the first put a new second mortgage on the property and three months later, I walked away with a profit of $43214 on that deal. You know that’s more money than some folks make in a year. I did it on one simple deal all because I had the power of private money, you know banks wouldn’t have touched that deal?

THAN:
Hard money lenders wouldn’t, nobody would have touched that deal except a private lender and that’s exactly right, that’s how we, cause we bought a lot of our deals early on and the first few private lenders, we didn’t have a tremendous amount of money and so we did exactly what your showing. We would take a property subject to and then we would use, we would always need to come up with 10, 15 , 20, 25 grand and a rehab. We would find a private lender to find the balance in the financing.

ALAN:
Yup.

THAN:
And it worked out perfectly. We’re in the deal for no money and its phenomenal it’s a great way and it was a mix you know of two different types of financing but it was perfect.

ALAN:
Oh yeah and, I mean, I walked away with $43214 on a deal that a bank wouldn’t have touched. I’d have lost the deal if I didn’t have private lenders, hard money lenders wouldn’t have touched it, you know no other would unless you got a private lender and you know how many folks who listen out there like the idea of using private lenders to move fast and do deals that banks won’t touch that’s what I just showed you right there. You know today I’m the lone approval committee, I’m in control, total, total control of my financing and all you folks should be too. Just imagine the power of that statement in your life. After learning your system it took me two weeks to get private lenders I now have one willing to invest $5 million Clam Carson down at Florida. You know, one of my students its what he wrote me you know I get emails like that all the time. You know one of the biggest items that can cripple your business whether you’re a beginner or seasoned investor is cash flow and the biggest holding cost from cash flows, that big monthly mortgage payment. I told you half of my deal were run without mortgage payment. Well right now if you guys haven’t taken notice now is the time cause I wanna pull back the curtain and want you to take a look at how you do deals and not have monthly mortgage payments. When I do that deal on the house that you see on the screen. Lady wanted to sell it. She wanted to move fast she didn’t wanna list it, she just wanted her cash, wanna move on she wants someone to pay cash for the whole property. And you know I could have done that cause I’ve got private lenders, I got the kind of money to buy the whole property but, a lot of times the property all have a first mortgage on it a low interest loan, less than what I’d be paying my private lenders so what makes sense to me is to have them deed me the property subject to the mortgage and leave that low interest loan out there and let me borrow money from a hard money lender just to pay off the lender, rehab cost to whatever I need that money for. But luckily that first loan after Than that’s exactly what you said when you got started. And so in this deal here, after talking to her, she agreed to do that but she wanted $39000 in cash and for a lot of you folks listening that a showstopper right now and the bank wouldn’t touch this deal the way I got it structured. You know they wouldn’t wanna go in and do their typical thing where they finance the whole shoot and match and some of you are gonna struggle doing that. Well not me, I picked up the phone and I called up a lender and I told the lender to immediately wire up the money in the closing and the lender did that but I didn’t ask for a 39000 I asked for 50000, went to a formal closing. Seller got $39000 I walked out at a closing with a key and $11000 this forward cash. I needed $3000 in repair, just a little TLC on that and a left over $8000. I’d like to have all you guys to all right this down now this is very important always borrow extra, always borrow extra, we all know you can run into a problem with a deal after you borrow it the furnace goes out you need a new gas line, whatever. But you got the money and it beats the heck outta having that cash in your bank account as opposed to having to go on a credit card or reaching into your bank account or borrow money from another private lender to finish the deal, always borrow extra I didn’t say over leverage, always borrow extra, on that big lesson. Now let me pull back the curtain and explain this how to use this no money down deals or no payment deals. My private lender her name’s Libby. And she is the mom of one of my employees. She worked a JOB all her life. I had a 4O1k, a 4O1k of a qualified retirement program with the company she worked with she contributed part of her pay for that and the company would do matching fund. Well she thought she had to leave the money in the company’s 4O1k. I want you guys to write this down this is very important. If someone has quit, retired or got laid off, quit, retired or got laid off, they can roll 4O1k over into a self directed IRA. Now that’s important write it down, self directed IRA and then they can loan the money to us. And that’s what you want them to do and what happened when Libby did that, she wrote she wrote her money over a self directed IRA and I told my custodian a company that holds that money for her and then, if she needs money to live on that’s no problem she can just request that they send her a monthly check for a certain amount of money and it gives her, gives her the live in money now she wants to grow this IRA she doesn’t want it to sit in there, she wants this money grown so what she does is she can loan the rest of that money out to real estate investors, like us. And what I do is I pay 10% interest to people who wants monthly payments I pay 12% if they will let the money accrue and get paid when I sell the house. Well half of my lenders have IRAs so half of my properties don’t have monthly payments on it because the IRA folks always want that 12%. See here’s what happens, they loan you the money and when you go to pay that money back you can’t pay back your real estate lender, your private lender directly or they’ll take a big tax at it. What you gotta do is loan it into back to where it came from which is at self directed IRA. And when you loan the money back and if you’re paying 12% like I am now they have more money to loan you, that’s a win-win. Now, couple other cool things since I’ve set this up where the people that ask for 12% don’t get payments you see this IRA holders they’d rather get the high interest to the supposedly pool around this monthly payments and so, I get a loan from a private lender with zero monthly payments. Now, let me put some icing on the cake for some of you guys with deals like this. Can I use that extra $80000 that I, remember I said always borrow extra and I walked out with $11000 used three in repairs and I’m left with an extra 8. Can I use that 8 to start making payments on the first mortgage? Sure can can I? That’s powerful isn’t it?

THAN:
Yeah, yeah.

ALAN:
You know so many folks go out and do subject to deals and I love ‘em. I love ‘em. But you have to deal with that monthly payment your screwing around trying to get a new tenant buyer in that property or sell that for all cash, but when the time its vacant, you gotta come up for the money for those payments. Not me, I let my lender pay it, I let my private lender, you know I just borrow extra, I knew I get that money to get payment on the first to get the property handled. That’s a win-win, so you borrow extra so you get early profit. You have no monthly payments for your private lender and you can use that contingency money to make payments on the first, which wipes those payments out too if you so desire. On this deal to finish this out, three months later I had a buyer come along and I walked away with a profit of $45900. That seller left me some profit because she sold at a discount. How many folks listening like the idea of getting some of your profit when you buy. I would think everyone of you. How many of you like the idea of having folks write you a check to buy a property just by picking up the phone? I’ll tell you what Than its like ordering pizza. I order money the way everybody else order out pizza. So next time you guys order out pizza think of Alan cause that’s the way I order money, just like that. How many folks like the idea of buying a property at a discount because you have all cash? I had a pretty good discount on that if I had a beautiful property and only need 3000 in repairs and I turn around and made a $45000 plus profit. See I buy a property for all cash and use somebody else’s money, I have no monthly payments, will banks let you do that? No way but private lenders will. How many folks like not having those monthly mortgage payments now? You know everybody listening could do just what I just trained them to do and I when I started out talking about the 4O1k. I started to go out, I looked initially for folks with CDs, bank CDs like my mom. Then I’m gravitated to where I realize I could borrow IRA money but then what I realized is that the pot of gold id from the laid off or quit or retired from their jobs. And they got this huge 4O1k and I started working on that and that’s where I ended up with more money that what I could handle.

THAN:
That’s funny, funny that you say that cause that’s what I learned form you so I didn’t have to go to that learning process that you just described, cause I remember, I remember early on I was listening to one of, one of the CDs and I was going through and you were talking about that concept. I remember sitting down with my business partner Paul and saying you know what he’s right we gotta go find older people that we can show them how they can turn they’re money over a self directed IRA and just you know, testimonial for you we approached somebody who had over $200000 just sitting there, just sitting there a retirement account and we showed them exactly how to turn them over into a self directed retirement account we pointed them right over right to equity trust it’s a great company that you know that I recommend and they switch it right over and all of a sudden we had $200000 and we used that money over and over and over again. And then we said you know what lets go get a list of people, let’s find a list of this people and you say there’s a tremendous amount of time by teaching us that concept. And exactly how to do it.

ALAN:
Thank you.

THAN:
So it’s, phenomenal.

ALAN:
Yeah, see that one concept is the pot of gold to real estate investors, you know just what we’ve taught tonight. You know we’re also taught to find motivated sellers and that’s the right thing to do and you know Than you do that I do that we go out and find motivated sellers, we what we do is we spend our time and money on signs and abandoned signs and newspaper ads and yellow pages ads and fliers and business cards and websites and that is a right thing to do folks, there’s nothing wrong with that. But what happens is when the seller calls up and because of all your marketing and you got a extremely motivated seller what could happen and what could have cost you if you can’t close the deal because you can’t fund the deal, what do you lose? Well you think I lose the deal, you think and you’re exactly right you know could be the deal of the century you know, Than talked about the million dollar deal out there you know.

THAN:
Yeah.

ALAN:
So you know and you remember it forever Than I mean. You know you don’t want that to happen to you. So you need to be able to perform when you get the motivated seller to get a hold of you but you also lose more than just the deal.

THAN:
You’re reputation.

ALAN:
You lose, that’s exactly right, you’re right on target, you lose your reputation you lose the fact that you spent your education money to learn those techniques then you went out and implemented that technique which cost you more money and time and then you failed you know but you won’t fail if you get private lenders and that’s the key but if you guys are out there 85% of you are hanging on to banks, you’re gonna find that this exact thing is gonna happen to you. It will happen, sooner or later. You know during a loan process with a bank or hard money lender you’re waiting to be approved you know like it feels like you’re begging for money. Let me show you a better way. And I’m gonna use one of my, another private lender, her name’s Blanche, real name. She’s in her 70s, widow, came to that 2nd luncheon remember that luncheon I had 12 folks in there she had one of those yellow legal tablets and she pounded me with a bunch of questions and I said wow I thought she was just there to make my life miserable. You know, actually she’s a smart lady she’s doing it with due diligence but I also thought she’s broke she just impresses me of somebody who didn’t have a dime and so I answered all of her questions. We had lunch and I never thought I’d see her again and I’ll be darned if she didn’t come back and loan me $25000 and $35000 and $15000 and $45000 then $110000 she’s up to $230000. How many folks out there would like to find a Blanche? I’ll bet every hand is going up right now. I’ll tell you what that’s only part of the story, now her sister loans me money. Her son loans me money the only problem of it is she’s got this Carleton Sheets course so well see how this thing works out. You know I’ve been in this business for 12 years and private lenders for 10, I’ve learned a lot of lessons and you guys need to write this lessons down and number one is don’t prejudge folks after meeting me tonight don’t prejudge potential private lenders, just get down and let folks know that you borrow and pay a high rate of return. And let the chips fall where it may. Some of your best lenders like Blanche, some of your best lenders out there will come from an approach and you wont think they have the money and they do. Number 2 is they test you, she tested me didn’t she? She started out at $25000 and now she’s up to 230000 they all test you, and let me give everybody a gold mine technique Than that, that can change their life right now. If someone comes to you and they say I’m gonna loan you 200000 like they did Than. Let me loan you 200000 I want you to immediately say, if I find a deal worth 500000 should I call you? Write that down folks, if I find a deal worth X and you guys fill in the X should I call you? That’s pretty powerful. That’s pretty powerful I was out in LA speaking to a group of 250 real estate investors. And when I walked in the room before I got up on stage I saw all the way across on the other side and one of my student and that student came running to see me so happy so see me it seems smiling and came running and said Alan I got my first private lender last night and they loaned me $750000. And I looked at him and he looked at me and he took his hand and he touched it in his forehead and he said oh, I know what you’re thinking, he said I forgot to up the ante. He was so excited about getting $750000 what would it hurt if he would have said if I find a deal worth a million and 5 should I call you? Should I call you? That’s doesn’t hurt a bit does it? I want you to say that before you say thank you folks. And find out where their limit is. You’re, they’d be, in the third item you gotta right down is they become your best sales folks. You remember I said with Blanche sister loans me money and her son loans me money. Private lenders bring you more private lenders how many folks like that idea? That’s better than a bank have any of you ever had a bank bring you more banks? You know that doesn’t happen, well, lest go down now and figure out how I find people to loan me money and lets go through that, number 1 is existing relationships, my first lender was my mom typically you guys are gonna work within your circle of influence your family, friends and associates. And I’ll show you the powerful results I know what you’re thinking, your thinking wait a minute Alan, they remember me back when I was a kid and I burnt the garage down. Look folks you grew up and they actually needs you worse than you need them your actually doing them a favor. You are no longer begging for money and where else can they get 12% secured by a mortgage? You know I said that in a crowd out on Phoenix not too long ago and I had somebody come up afterwards and they said wow, they said what a powerful statement, you know where else can the get 12% secured by a mortgage, whatever percent you guys are choosing you know this is your program. Umm, you know the lender doesn’t approve your purchases and I love that what they do is they write you a check and actually write out your closing agent and that’s it. They sit back and wait for a bigger check that’s American dream for some of this folks. You got three steps to finding private lenders. Number 1 is generate leads, number 2 send some information to them and or invite them to a luncheon and then number three pass or play and I stub my toe on that third one and I’m gonna help you guys here in a minute and tell you how you can do it so you’ll be tremendously successful like I am now but I stumbled my toe on my first luncheon on that. Step 1 to generate leads is I have ads there in the paper and send out postcards. Now, you need to know that there is some controls in private lending and I’m gonna talk about that in a little bit. And there is times you can not advertise so don’t jump up this advertise cause you can get in trouble, there’s times you can but there are other times you can advertise and I need to explain to you what the difference is. And then on, here is my newspaper ad headlines my new CD I give them the date and the location but I don’t give them the time, why is that well I want them to call me, you see I’m the guy buying the lunches and I also want to give them directions but maybe more importantly than anything else people with money know other people with money. And I wanna encourage them to bring people they know that have money so I also send out a postcard, I got a newspaper bannered postcard tells a nice story about this lady that’s getting hammered with low CD rates and doesn’t like the stock market afraid of it and tells a nice story about how she eventually came to my luncheon. And so I send this out and I think I actually slowed the postal service down in town cause I think the postal folks are reading this thing and so its so fun and so I took the same postcard and made the same into an editorial and took it to a penny saver magazine and I had ah, somebody took it to a newspaper and said I couldn’t get out the part so I figured out what happened to Elizabeth. So it is a fun story and where do I send that postcard to? Well I go to a list broker. A list broker is a company that has information on all of us and you can get it off the internet or in yellow pages and find companies that do this and they’ll sell you names for pennies and you turn around and mail the postcard after this people what I do is I target people with bank CDs. And so I find them, just folks in my county that have bank certificates to deposit and then I turn around and have the people when they call back in and get the postcard and I drive them to a voice mailbox or a 27/7 live answering service. So I don’t even take the calls. But what I do is about dinner time and its like I call everybody up and do what I said and make sure that they get directions on how to get to the place. Have you ever seen anything as easy as this, its very very easy system. Why do I like luncheons? Well they’re quick and simple and I can average my time by talking to everybody at once but more importantly is there is a synergy that takes place in the back of the room and I want you guys to write this down talk 1st eat 2nd don’t mess that up. Talk 1st eat 2nd because you tell your story show your slide presentation and then move them to tables to have lunch and the rubber chicken that you bought them and they’re gonna be sitting across the table from somebody that they don’t know and they’re gonna be looking for a common ground to talk about and what I find is every every every luncheon they talk about you and they sell each other on you and so your conversion rate is higher on this. Also in my very first luncheon I created a times savings check sheets. I love check sheets cause I run my company with systems. This is a five page check sheets and its actually a start of the road map, I have on it the location and the advertising reservations handouts. Let me do something Than right now I gotta share with everyone that I got no clue or desire to do what you and I are doing right now. I wanna roll the clock back 12 years when I got into real estate actually, roll back to when I quit my job, then became a full time real estate investor. And what happened was all I wanted to do was buy and sell property. And what happened was I had this two luncheons, and I had this money show up and I got myself to a place where I could go to a bootcamp, a live event, I went to a bootcamp a live event in April 2002. And when I was sitting there the guy running the show ran around the room and he said what are you doing different, what are you doing different with each person to find out what they where doing so we could learn from each other. And when he got to me, well at first I didn’t know what the heck I was gonna say, then I said well I had all this luncheons and all this money showed up. And he said that’s great Alan cause you’re speaking in Cashiers in North Carolina next month. I sure the heck didn’t know I was gonna be speaking there I didn’t even know where this place was I couldn’t find it hardly on the map, it’s a beautiful place but I didn’t I never heard of it before. Well and I just said what the heck I’ll go to this thing, and I went to this ah, three day event. And there was 53 real investors in the room and I sat there for 2 and a half days listening to all of this other wonderful speeches taking notes and learning all I could in real estate and finally right before lunch on day three, he said alright, come on up here Alan and share with everybody what you’re doing now to find this private money. Well I gotta tell you my knees were knocking and I went in front this group of real investors and I shared with them uh how I did the luncheon and I brought the slides, the 37 slides that I produced to show private lenders and I showed my slides to everybody and I gotta tell you, something magical happened see I’ve been eating alone, the other two days, but not that day, that day there were three car loads of real estate all packed into this cars going out to eat and I was the center of attraction I, they were asking me questions, somebody bought my lunch and I thought, this is a cool day. And so we just had a great lunch and had a great time and here this people are riveted by what I had to say. Throwing business cards are at me and things like that want ah you know start a relationship as far as learning how I did this thing and I got back to the afternoon session pulled into the gravel parking lot and there was a guy looking for me. And sometimes there’s bad news and sometimes its good news, well fortunately for me this one is good news, the guy comes running up to me and said Alan I wanna buy your slides. And I said my slides aren’t for sale, he said that’s all right send me some, he pulled out this check book wrote me a check and handed me a check and I handed him my slides I didn’t know they were for sale until that nanosecond when I had a check in my hands that’s why I handed him my slides and I walked to the, from the gravel parking lot up to the door of the place and a lady said Alan, I wanna buy your slides and I said well, you can’t some dude in the parking lot just bought them and she said, that’s OK she got out her purse, got out a check book wrote me a check and said please send me some. I said alright and I walked in from that door into my seat and in the training room we were in and some guy come running up and said Alan I wanna buy your slides. Well, by then I kinda figured it out but the guy running the show really helped me he got me over the corner and he said look, he said you got no choice, he said real estate investors desperately need what you have and the next month I was in front of a hundred and fifty folks in Jacksonville, Florida talking about private lending and training and from there it took off from where I’m speaking 50 times a year all over the nation, it it , it is the biggest thing that has happened to me though it is the heartfelt feeling that I get helping people because I have people come up and not only told me success stories but sometimes they’ll come up want their picture taken and tear up in tears of joy because it changed their life. And that’s why I do what I do now, it’s a phenomenal thing that’s happened to me.

THAN:
Amazing, amazing when you, the feeling you get when you help people it really is and it all comes back to you. Many times over so.

ALAN:
Yep.

THAN:
And there’s obviously a demand for, for lending and I know personally you’ve been responsible, I mean we, we’ve probably raise someone in the midst of 25 to 30 million dollars in its funding over the course of our business for a lot of this different deals and we’ve, because of what you’ve taught us originally, you know, we’ve put on luncheons, we’ve used the exact system and it worked and now we don’t even need money and what we do is we do the same thing that you’re doing, turn around and we loan that money and we’ve actually broker that money out while we loan in from private lenders and attach it to a property and we take it to the points in between and so I mean that’s.

ALAN:
Yep.

THAN:
Amazing what you can do once you’re having more than that capital.

ALAN:
Yep. Another stream of income. Oh yeah.

THAN:
Yup.

ALAN:
It changes your whole concept of the business so, umm, here’s here’s someone’s life that got changed. Met me just like you folks are, ahh, tonight and his name is Troy Wilkinson in Los Angeles, California and what he did within 30 days meeting me he shot me back this email. And he said Alan we were blown away by your program. Talk about a paradigm shift 20 minutes after presenting your private lending slide presentation in his office on our laptop he interrupted and asked. What could you do with a million? None of us could sleep that night. Troy puts the slide on his laptop, got involved with my system showed it to one guy, one time, the guy loans him $1.4 million and that millionaire is connected to other millionaires. You know step one of my process is to lead generate step two is to have the luncheon and step three is to pass, they pass or play. Well on my first luncheon like I said I stub my toe I got to the last slide, 37th slide and they said, and what happened was they said lets have lunch. Well for the next two weeks I started to call everybody up cause I don’t know who was in or out, I felt like an ambulance chaser, bad posture. Not where you wanna be. What I did in my 2nd luncheon was this. I got to that 37th slide and I said I gave everybody a packet when they walked in the door. I’d like to have you open up that package right now and on the left hand side I’d like to you to pull up this form fill them out I’ll collect em in the back of the room. This form has their name whether in or out they fill, how much money they like to loan. Can you imagine you have your 1st luncheon and you got 18 of this in your hands and you come through them and it adds up into $850000 would that change anybody’s life? I’ll tell you that’s what happens to my private lenders. You know Than you’re testimonial my real estate investors my students that’s what happens to them. It’s changing lives out there. You know how many folks would like to do a luncheon. You know, when I do this I get a, I get 80-90% of the room shoot their hands up. But there’s always a few folks out there that feel uncomfortable standing up and talking because they’re more afraid of public speaking. What do people say about speaking in front of groups, that people are more afraid of speaking than what?

THAN:
Death.

ALAN:
Death, we all know that don’t we. So what’s that say about the typical funeral? You’d rather be in the box than give a eulogy, you know, no way, you know, what’s the logical thing do, well have of my students just do 1 on 1 like Troy Wilkins and the other half do what you did Than. It just depends on what your comfort zone is. You know the best benefit cause you can do more deals and more profitable deals using private lenders. How many folks would like to do a deal and never talk to a bank? Everybody right? You know IRA’s I gotta touch on this cause this is the pot of gold for us. You cant loan to yourself, child or parent but you can brother and sisters so you cant loan up and down the family you cannot cross it. And you can also loan out your money out there like, you know, Than you’re loaning out some money too you said.

THAN:
Yup, we do it right.

ALAN:
But, but you know it could be, you know you create your own private bank and I’ve got a luncheon alternative. Cause some people will not be able to make it to the luncheon and what I figured out was I needed to fill that gap on people that’s just not gonna be able to make a luncheon so what I did was I took an audio CD its extremely powerful, it’s a sales tool. And I wanted to give it away but I wanted to house it in what I call an audio business card cause what comes across as professional. So I created a marketing tool that ahh, it’s a plastic case to hold the CD, that holds your business card and I also have a pocket in there inside this I stuck information into, where ah, about who I am I put that in this form we talked about in there and I just give this thing out and money shows up. That’s powerful isn’t it when you just give out a CD and private lenders are attracted to you because of it, you know. Look if you’re a beginner or a seasoned investor how many of you folks think the current private lenders could help your business, I’m sure its everyone of you if you grasp this concept you know. If you’re a seasoned investor can you imagine the wealth giving opportunity you’ve lost over the years because you failed to get private lenders and if you’re a beginner you’re on a call like this you go into a seminar and the next thing you do is you run out and make offers. The problem with that is your paralyzed because you don’t know how to fund the deal, it looks like a great deal but the seller wants cash, you know everybody, how many deals will you all let slip to your fingers after tonight. You know Than didn’t have me on here, not to uhh, have you have deals slip through your fingers he had me on here because he’s trying to fill a gap that you guys are asking number 1 and number 2 questions just what I heard and that’s what this private lenders do its, it is, you learn the technique you use them for a lifetime. All for you beginners I wanna talk to you for just a second, you know you might go out and ask for money and people say well umm, why are you asking for money if you’ve never done a deal you’ve only got one deal, why are you asking me for money. Well think about a normal business start up, your gonna wanna right this down, number 1, lets say a doctor wants to be a doctor 1st thing they do is they get an education, that’s step 1, step 2 is they get their funding lined up so they can buy their computers and their desks and their file cabinets and their doctor equipment and then step 3 is they open up for business, they hang around shingles and that is a typical business start up. Well real estate investors we get this notched up a little bit, now what we do is get an education and then we ran out and make offers. Offers folks is step 3, you know we skip right over and then we worry about how we get it funded what I want you to do is you beginners is, if they say why are you looking for money well given this example of a normal business start up and say hey I’m in step 2. Now everybody gotta right this down, just tell new lenders that your looking for folks that wanna get in on the ground floor, you know people in Springfield, Ohio that wanna get in as my private lenders can’t, they’re blocked out because the programs over. You tell people that hey your looking for folks that wanna get down to the ground floor. This sounds like this program is gonna go away and if you guys use my technique everyone of you will be able to do that and have more lenders than what you can possibly use. You know using private lenders is the best because it puts you in control of your financing. You know I shouldn’t have to go anymore that’s the most powerful statement out there if I can put everybody in control that should be enough for everybody listening to go get private lenders. But my list goes on, it fits with all types of real estate deals you do deals in banks with hard money lenders will refuse you can pull money and you have no monthly payments, having private lenders is the easiest. Because it’s not a lot of work, you learn the techniques one time and you do them for a lifetime. Funds show up with just a phone call and you got an army of lenders out there begging you to take their money and you’re no longer begging for money and it’s the cheapest, because you avoid hard money lender fees you avoid those padded fees that they toss in there. You can buy a property at a discount because cash is king and you’ll be able to close deals because the most expensive funding you will ever ever have is the day you can’t close. It’s the safest because you quit your job you can still get funding, you have poor credit? Who cares? You just go get funding, you borrow extra contingency money so you don’t ran out of cash and you avoid the embarrassment that Than was talking about of losing a great deal because you cant close. It’s the best the easiest the cheapest and the safest way to fund your deal. There is no other funding source that can match all four. Lets take a look at the impact of just one person giving you private money. Lets see what it did to a friend of mine Robert Anderson, Robert, he’s retired and in debt, he was in debt in the tune of $53000 in credit card debt. He’s married, wife’s name is Rosa. Wanted to buy an apartment complex but he couldn’t even afford the closing cost or loan the deal. Well the deal was, it was 2.3 million dollar deal and he made offer of $1.8, took a half a million off and he made a cash offer of 1.8. The only way he could do that, the only way he could do that was to get a private lender. And that’s what he did using my techniques of no payments and he paid this lender 15% interest. The folks that had this deal, was an apartment complex took it, took that half a million dollar reduction but took the $1.8 million on this deal and this was Robert’s first deal, he flipped it and sold it in 7 months. When he flipped it the private lender got a check worth $270000 and that’s ok cause the lender was the capitalist to make it happen. Robert told me, he said I couldn’t have done this deal without Alan’s system. And he walked away from closing with 1.2 million dollars in 7 months on his first deal. He did the deal on Florida and now, he’s living in North Carolina on the side of the mountain. He’s there doing 5 more deals the last time I talked to him. You know this private lender concept is revolutionizing our business. I have a big word of caution though, I don’t want you guys to ran out and start asking people for money, and possibly damage your relationship or be dismissed by a fly by night without having all the tools that you need to get this done with techniques. You know when you get out and ask someone for money and you know they got a ton of money and they turn you down, you know its hard to get back to the well and ask a 2nd time. So lets ask, the 1st time, lets ask it right and be professional. So lets learn the techniques. And notes. I’m a note taker too. I encourage you guys to take notes but what happens to those notes after this call. They’ll end up in a cabinet some place with notes from the last call in memory, we think we’re gonna remember everything but in reality, what happens is psychologist tell us we forget half of everything within the 1st 24 hours. You actually need to take it to the next level and that means you need a system, you need to plug in a system that works and I love systems because they make my life so easy and why not work with systems that make you successful. What I wanna do is I wanna talk to you about my advance system which is the way I found money and had those 2 first luncheons. What with the, it explodes your money supply with 4 sure-fire marketing tools. The post card I’ve used to raise millions of dollars. A trifle mailer that I use to establish credibility and news paper ads I used to raise millions of dollars and then the phone scripts that I use to excite and reassure prospective lenders to respond. You see I got all the tools you need in this system to be successful. I teach about 4 key characteristics of people that you should mail postcards to so you’re list broker can compile an auto-responsive list for you. And then I blow the lid off of the postcard mailing through repeat mailings, find out how many times and when you should re-mail to the same prospect. And then how to rotate your newspaper ads for maximum response. I discover which sections get the biggest return and on which day and I can found that out through trial and error tremendously successful its gonna save you guys a lot of money, you can duplicate my standing room only presentation and instantly pile up loan commitments, when lenders reply to your ads and post cards. This is my proven proven system for loan commitments. Also in this, you get a, the powerful 3 ring manual you’ll also get forms, you get 27 great forms. One of them obviously is the 37 slides and you get to read the script. Which is gonna help you avoid the fear monster. The promissory note that I like to show lenders. Special report on private lenders which is a Q and A report, the audio business card. All the tools for that and my postcards and much much more. The neat thing about it is with my system is on the forms its web based what you can do is you can put in your information and you go ahead and click a button and all 27 forms are filled out with your name, your website, your phone number, all your contact information, your percentage your gonna pay in less than 10 minutes its done. And you’ve got your presentation ready to go whether your gonna do 1 on 1 like Troy Robinson or do luncheons like Than and I do. You’ve got all your advertising all the scripts you need to get the job done with that customized template. Here is what Mary Ann told me out in California she wrote its like putting your teaser at the back of our business card we attract people we normally wouldn’t have approached at the yacht club, knowing what to say is the key. See what happens is, in this system I even give you your business card and I use both sides in the back, I’ve got what she calls a teaser which is words that attract private lenders, she’s getting a ton of money from private lenders just from the business cards I’ve created. Plus you not only get the audio, the, the forms, the 27 forms and the three ring manual on the step by step approach on finding private lenders. The purpose of this system by the way it’s a magnet for helping you find private lenders but you also get 8 powerful audios. And many of my students find their 1st private lenders as they’re listening to the audio for the 1st time. You’ll be able to answer tough lender questions with confidence and you’ll know the right way to position yourself to overcome lender skepticism. You’ll figure out how to get the money. How to answer key questions that they aim and ask you and avoid not knowing what to say. You know what my students tell me is my system is extremely easy to use. I even have a quick start manual and audio CD. Remember I had that 5 page check sheet? Well what I do is I go through that in this manual and you can even read, I also got advertising secrets that I’ve uncovered. I put those in there and I answer student questions which many of you have those are on the audio and the quick start manual. Plus lenders loan you money based on trust. So I’ve got my credibility kit on CD Rom and you can use that and you get the audio business card. The neat thing about the audio business card is I get all the information I used plus on the audio business card you get the audio CD in duplication rights so you can duplicate the heck out of this thing and hand it out to potential lenders and have money show up like I do. So you can do the luncheon, the slide presentation, the audios will give you the words to say. The CD, the forms give you the tools to use plus the business cards you just hand it out and you can start immediately. The advance system it’s a 172 page manual aid audios, web based forms, the credibility kit, the quick start, the audios. I sell this thing everyday out of the office for $997. Let me tell you here what Jim Neubauer said, he said we were able to raise over $200000 with our 1st luncheon and plus I’ve got a second home study system. The first one, the advance system that has the money show up. The second one, the wealth management system, what that system is all about is what do you do when the money shows up, you know how do you calculate interest payment, how do you handle IRA money, how to handle lender taxes, when to start and stop payments.

THAN:
You know Alan, Alan, just to interrupt you for a second, and I do wanna give you a personal endorsement because, the reason I have you on the call is I’ve learn so much from this system when we were starting out Paul and I always said to Paul when we invite people on its for a reason because they have a system that works and you streamlined it for us and then one of the best thing is we listen to your presentation you know when you actually gave the presentation to the lenders and how it can be so helpful and you’re gonna be talking to people you have to know what to say and I remember you know Paul and I sit down and have a little fear about say well how do we present it. What do we actually say, how do we handle the objections and we were both nervous about the 1st time we did it and after we listened to that CD it was phenomenal cause we just went in there, we changed your forms and put on our company name and went out there and started raising money and we knew exactly what to say and its phenomenal that’s why I’ve always had such a loyalty to you so for those of you out there watching the webinar right now go to ah, if you wanna see a list of all that’s Alan’s talk about go to the area below this video, so Alan you know I definitely wanna give you that and I know, keep going cause you I know you have a ton of other stuffs so keep going.

ALAN:
I wanna make sure they understand everything we got here and what what, I’m glad you said that cause I didn’t mention that about that CD and so many, I get so much feedback on people that love that that CD. Because I go through the whole luncheon and you get to hear me do one live and then you can just emulate me and also what with this system here the wealth management system that you get. Cause I’ve got some rules of thumb that you need to know such as, what happens if you borrow money for a week, what do I pay my lender or what happens if you call money up for a closing but you don’t close for too much. You know I want happy lenders out there so, this system here is $697. It is a steal, that is a 179 pages manual, three ring manual, 8 audios and form CD. There’s even a manual in there on how to invest your money. You know what you have to pay if you wanna have all the money you need on your own. Well let’s say I give you 80 hours to go learn everything you could learn on that’s in this system. And your time’s worth 50 bucks an hour that’s $4000 of your time. And then to put together a presentation, I’ve got a hundred hours on mine. I’ve actually got more than that and that’s actually cheap with Alan, I can’t believe you got a hundred hours. But look folks, it was back when I was out of a job negative $10000 in debt, I had time and you better believe I gotta hundred dollars on this thing I wanna make sure the slides flowed and that words popped in when they’re supposed to when I give the presentation. I want a grand slam on the park grown world and I did. Well you don’t have to emulate me and go do a hundred dollars on your slide presentation that’s $5000 of your time and then you gotta test it. Mine’s tested in all over US and Canada, that’s a $2000 if we figure 20 bucks, 20 hours there. Then SEC knowledge of a, you gotta get an attorney, I wanna talk about that in just a second cause there’s a few do’s and don’ts in the advertising I talked about that. Well $200 for an attorney 20 hours for that 4000, that’s $15500. Well I can’t charge that for the system individually. I told you what they were one is the advanced 997 and the other is 697 that adds up if you buy them individually its worth $1697 but when you buy them together I give you a discount 1497 when you buy them as a package and you need them it’s a one two punch. One is the magnet on the advance system on how to get money and the other one is what you do when the money shows up and you need to know everything. But let me ask you a question, do you really think you can get out and do the things in 80 hours and learn all the ins and outs on your own on private lending? Even with the internet you don’t have a prayer. You see there isn’t a roadmap when I got started and there isn’t one now, unless you come through me, Tony Braddock what he told me was he said he raised over a half a million dollars using my system and he’s got 8 out of 10 commitments from 1 on 1 presentations. And his equity portion is 500 six figure income job 70 hour work week, purchased 75 foot yacht and started a dinner cruise. And it’s truly been awesome and has changed his life forever. Thanks so much for sharing your system. That’s how important it was to Tony. You can use this system for luncheons or for one on ones its your choice what I’m gonna do is give everybody a phenomenal deal right now just for you Than, actually Than kinda twisted my arm a little bit folks.

THAN:
I, I wanted that other system included and I don’t know how many times I had to freaking get you on the phone to throw it in there.

ALAN:
Yep, yep well when I agreed to do when he had me down on the dirt beaten on me folks is I agreed and I don’t discount this stuff, I don’t have to, I don’t discount, but I do this as a favor to Than and, know you and I know Paul and 300 bucks off, and ah it’s a dirt cheap price investment of $1197 for the folks that react right now and how do they order?

THAN:
They go right below this video you will see a list of everything ah, that Alan is talking about and that other course is included 1197 price which is awesome cause I know I had to get Alan on the phone a couple of times to get that done and that system’s phenomenal cause that’s the same system that I used its been upgraded many times I mean I used the most basic version of it uh, years ago and that’s phenomenal it helped us I mean we raised millions of dollars and we’ve been using the same things that you had in the beginning and its been phenomenal so once again you go to below this video if you’re not near a computer you don’t wanna order online you can call in to the office the office number is 203-624-0444. Once again the office number is 203-624-0444 obviously you can order online because we have a certain number of people taking calls in the office I’d prefer to do it online if you can.

ALAN:
Yup I’m gonna do something now Than and I don’t know if you know but I gotta brand new course.

THAN:
Ok.

ALAN:
It’s a brand new study system and I hired an attorney to research every states in the United States and its my real estate investor’s bible to the SEC. remember I told you there are times you cannot advertise and there are times you can advertise?

THAN:
Yeah.

ALAN:
Every state controls 5 areas out there, one has to do with the number of lenders, one has to do the amount of money you get the other is when you can and cannot advertise one has to do with commissions and the other one has to do with pooling of money. You need to know what your state requires. And so what I’ve done is I’ve gone out, you can imagine an entire SEC attorney to research one state. Well I’ve got students all over the US I had to do every state. And that’s what this powerful, wonderful home study course does it details every state and it also gives you the forms you need to advertise in your state. I’ve also got an attorney referral list in here if you’re dealing with money from foreign countries, I’ve got that in here. You must have the SEC bible so you got the knowledge to know what you can and cannot do in your state and, and I know I’ve got folks listening that are doing business in two states, they want lenders in one and property in another or more. This, this bible has every state so you just go through, pick out the the handful of pages for your state and if you need it from another state you take a look at that state. But it has every state included in this. I’ve got ah website disclaimer for you on the forms CD I’ve got a fill in the blanks disclosure statement cause I like to have a meeting in mind with my private lenders so I have to disclose that and then what is the minimum threshold of private lenders that you have within your state, they range from anywhere from 5 or 40 the state I’m in is 10. Typically you guys are gonna be at 25 or 35 private lenders but then you can fill out paperwork and go unlimited and go unlimited.

THAN:
Wow that’s awesome.

ALAN:
Yeah. You just need in the paperwork’s here. This is a 360 page manual, there are 8 audios, there is a forms CD I guess that has every state. I sell this for $1197 and what I’m gonna do as a gift to you Than is I’m gonna let the first 11 folks that order get this for free.

THAN:
That’s awesome.

ALAN:
The first 11 folks its, it’s a free. It’s a 3rd home study course, I want everybody to think about this, well I’ve just offered you first 11 folks is number 1 is the advanced system which has my luncheon slides which is a magnet for finding private lenders. Number 2 is this home study system that Than wanted me put in which is how to manage the money once you get your first private lender and beyond. And then what this system does is it keeps you safe. So the first 11 folks get this and the reason I limit this is one is cause its an item I could sell and I’m giving it away but what I’m gonna do is I wanna give the first 11 folks all the tools they need to be successful on this. You know and also I wanna help those first 11 folks with the mentoring certificate. Where they have my personal fax and personal emails where I’m gonna be there to help them in the next 90 days. Reason they need this is they can get answers to questions it’s gonna take them years to learn on their own and they can move fast on doing deals because I’m there to help them and also I know people don’t know this but access to me is limited I’ve got gatekeepers out there on this and they, they stop the phone calls because I’m so busy running my 2 businesses and doing things like what we’re doing right now I can’t get to the phone. Well what I’ve got for today is you got 2 home study systems my advanced and my wealth management system which individually goes for 1697 the SEC bible which is 1197 powerful home study system on the SEC do’s and dont’s within your own state and then the total there is $4585, you know all for an investment of dirt cheap $1197 that’s a saving of $1497. How do they order again?

THAN:
They go to below this video. Ahh, that’s awesome I had no concept of you throwing in the SEC manual and that’s, I’ll tell you what that in itself is worth it because I’ve seen you in many events where people are buying that for $1197 so your throwing that in.

ALAN:
That’s right. Yup you know I’m making this simple everybody needs to know this I make how to find private lenders so simple you don’t have a bit of worry with me because my system is step by step makes it so simple that, that you can actually have other people to do it for you. You know here’s what Ted Schilling told me, he said I got my 1st private lender after I talked to him on the phone. A guy signed up for half a million dollars, what happened was Ted was one of the 1st number of folks and he got that mentoring certificate that I just offered to the first 11. And he, and he emailed me and so I picked up the phone called him cause he was ready to go to the airport with the guy and on the way to the airport the guy loaned him a half a million bucks just on the fact of our conversation he got his first private lender and a half a million dollars. You know buy now and you know you’ll have a benefit of having private lenders. You know just the advanced and wealth management is worth every penny because I just discount the heck out of it for Than. But also I’ve included a couple of other huge bonuses one of this is the SEC bible and the mentoring certificate for the first 11 folks, you need to react now and not miss out. My iron clad money back guarantee you guys can’t go wrong with me check everything out for 30 days and if it’s not for you I’ll give you every dime back, give you every dime back you got a prompt and courteous refund. And you need my combo system my private lenders what I called my combo system for no other reason that will totally blast your competition out of the saddle, blows them away. Number 2 is it gives you confidence to do deals and that is the number thing I hear from all of my students on how much confidence they get just listening to the audios will give you the confidence to go get private lenders. Number 3 is that it solves cash flow problems. Remember, I’m the guy that can teach you deals and not to worry about monthly payments. You got three options you don’t know this. Option number 1 is do nothing, you know so many folks are waiting for their ships to come in and pile full of gold and gold the balloons and wealth and I’m sad to say some folks their ships haven’t even left the dock yet. And, and I feel sad about that but theirs nothing I can do about that. You gotta take a chance folks and change your life. Number 2 is you can do it yourself, well there’s no way on this earth that you can match the deal I just gave everybody. And I gave everybody a tremendous deal I mean I discounted two of my systems that I don’t discount, plus I gave you a couple of additional bonuses for the first 11. Or number 3 is you can get involved and that’s what I want everybody to do, you know that’s actually the only way I can help you, what you could lose if you decided to walk away from this offer tonight? Bank turns you down on your next deal. You lose, lets say $31000 typical deals for a lot of folks or you decided to shift in to hard money lenders like we talked about. Well you do a 100000 at 5 points business without the patent fees that’s $5000 pays and that’s 36000 and that 2 deals pays for the system. You know many, many, many times over and frankly I cannot imagine building a real estate empire and not having the best funding I can get my hands on. It’s actually hard on your business folks. My system is very easy to use and besides I’ve done all the work that’s one of the things my students like, I give you all the tools to get the job done. And the tools you get are for a lifetime aren’t they? You know success is a choice and I’d be honored virtually honored if you guys would get involved with my system it’s the only way I can help you like I said, my promise to you is this is a complete system on finding private lenders, and the system is the best, the easiest, and safest way to attract all the lenders you guys will ever need. How do they order again Than?

THAN:
If you wanna order right now with all those bonuses Alan just talked about go to the add to cart below this video. But if you do wanna call in you can call in at 203-624-0444 we will take your call right over the phone and that’s 203-624-0444 and you can order either place.

ALAN:
Awesome, hey I gotta run, I’ll tell you what I gotta get going here, I hate to do that to you Than but this has been awesome and I thank you for having me on the call and everybody for being on the call.

THAN:
And yeah well, I thank you as well Alan and it’s always a pleasure you know and I’ve had a great deal of loyalty to you and your system cause I know it’s helped us tremendously so I would encourage everybody to take advantage of the offer tonight cause that’s a phenomenal offer and I’ve seen it in a lot of different events and that’s not the offer that he normally gives out so.

ALAN:
Well that’s for sure.

THAN:
Alan I’m glad that I, I’m glad that I had some sort of an influence. You made me call you at your office 7-8 times and hey listen I want that other course added as well.

ALAN:
Yep.

THAN:
And ah.

ALAN:
It worked.

Than:
So.

ALAN:
Whatever you did worked, I tell you. Everybody just got a great deal for you guys and you got nothing to lose you got 30 days to check it out you know and if it’s not for them they’ll get their money back. So nothing to lose and everything to gain so thank you and I gotta run.

THAN:
Thank you guys thank you everyone on the call I appreciate it very much.

ALAN:
Yep, bye bye.

THAN:
Bye now.