Do you have a burning desire to take your real estate business to the next level and maybe quit that job and make a lot of money? If you’re a beginner, your biggest hurdle to get over is how to fund your deals. Or maybe if you’re doing deals with your own money, but there is actually a better way to do this. Alan Cowgill, the owner of Colby Properties, LLC and president of Integrity Home Buyers, Inc., is all about private money made easier. He trains note investors on the best, the easiest, the cheapest, and the safest ways to raise private capital and fund their real estate and note deals.
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Private Money Made Easier with Alan Cowgill
We are here with Alan Cowgill. He is the President of Integrity Home Buyers, Inc. He’s here to talk about private money made easier, which is also another hot button topic for all of us in the note space. Alan, how are you doing?
I’m great. I’m glad to be here.
We’re glad to have you very much. Tell us a bit about your private money made easier.
I’ve been doing the private money for a couple of decades. It is incredible in my life and also for my students. I’m here for one purpose and one purpose only and that’s to get more money into your bank account. That’s what it’s all about. Do you have a burning desire to take your real estate business to the next level and maybe quit that job and make big chunks of money? This is it. This is where to get the money. How to get all the money you need to buy apartment complexes, commercial property, single family homes, and notes regardless of your credit or financial situation? If you’re just getting started and needs funding for your deals, and maybe you’re doing deals with your own money, I’m going to show you a better way. If you’re a beginner, there’s no question that you need to get in to private money. Your biggest hurdle that you got to get over is how to fund your deals. There’s only four parts of a real estate deal at the very top level.
Number one is you got to find the property. Number two is you got to fund it, which is what now is all about. Number three is you fix it. Number four is you keep it for long-term or you sell it, the same with notes. The intermediate real estate investor, you can do a handful of deals and the lending institutions will shut you down. How do I know that one? I’ve been there, done that. If you’re an experienced real estate investor, maybe using your own money into deals, there’s a lot better use of your money. What I’m going to train you on is the best, the easiest, the cheapest, and the safest way to fund your deals. That is what everybody is looking for, and the answer to that is what I’m teaching, is private money.
A little bit more about myself. I was out in the corporate world. I got a quarter century in corporate America. The last seventeen and a half years, I was working for a company called Honeywell and I was making the strobe lights on the aircraft. I was in aerospace and 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 job all their life. It got my attention because I saw that it was going to happen to me if I didn’t change my ways. I didn’t know what to do. Even though I had been successful in corporate America, I was struggling getting my bills paid and I had this old beat up car that needed some maintenance in it. I’m just putting that on the back burner. One night, on a first date, that car paid me back. It’s an ugly story right from the start. I took this lady home from our very first date. I hopped out of the car. I started to walk her up to the door, I turned around and look, and my car had burst into flames. You know how embarrassing it was standing there holding her hand watching the firemen put my car out?
Every morning when she worked, a remembrance of that date was a burnt charred mark in the parking lot. It kept me frustrated not knowing what to do with my life. I looked into franchises but they take money so I couldn’t do that. I then decided to invest. I took my whole Federal Tax Return that year and spent it down on lottery tickets. I lost on every ticket. You probably think I’m not the sharpest tool in the shed. It got me frustrated. One night, I couldn’t sleep. I get up at 2:00 AM and turned on the TV and started to channel surf. I hit one of those real estate infomercials and it got my attention. I thought, “I can do this.” I picked up the phone and I ordered a home study system and I became enthralled with real estate. That year, I bought my very first two investment properties. In the next year, I got five then eighteen. Since that point in time, I’ve done hundreds of real estate transactions.
Half the deals I do are without monthly payments. Can you imagine having a million dollars loaned to you and you don’t have to worry about monthly payments. How about if I teach you that technique here? I want to be serious. I want to make sure everybody’s on the same page. I look back in my life and I had all these humorous failures going on and that’s not the way we want to end our life. We want to have phenomenal successes and it’s all about the choices I made. I made the choice not to fix my car and that plan didn’t work out. Then the choice to get the lottery tickets and that didn’t work out. Then I got into real estate and it changed the rest of my life. You’re going to have choices too. At the end, you could be nothing and not take action. Number two is you hear this thing about private money and do it your way rather than the system I’m going to teach you. That can be hazardous. Number three is you can embrace what I’m teaching you, take a lot of notes, and implement what I teach you on how to get private money.
Let’s talk about some financing I tried. I started out with banks and they were friendly to real estate investors, but one day the regulators came in, took a look at the bank’s books and say you can’t do those types of loans anymore. What they did is they shut all those folks going to the bank that were creative real estate investors. They shut us down within 24 hours. I had to do something else. I went out and I got a line of credit. When you think about the line of credit is you max that out, you shut your business down and every year they can call that thing new. Then I gravitated over to hard money lenders and they’re expensive. I ended up finding private money. I’ve also got creative financing. We’re looking for creative financing. If you go out and create a great deal, maybe it’s a deal of the century for you on creative financing, but you don’t have the funds to give the person lacking money or to do the deal or the rehab costs, then you can’t do the deal and you’ve got to walk away from it. I never ever want that to happen. What happens with private money, it’s just a phone call away. If you’re doing creative financing without funding, then you’re not in control.
Many of you might be going to banks, and when I take surveys all over the nation, I find out that 85% of the folks in the room are going to banks before they meet me. You can lose some of the best deals because somebody comes along and buys the deal out from underneath you. You’ve got to have money down. I want to take a stark look at reality because some of you don’t have the 20% down. That shuts you down right there. Banks charge points in loan fees and granted they aren’t high, but they’re still eroding your profit based. They won’t finance some unusual deals. There are some my deals that they wouldn’t have touched that I make tens of thousands of dollars on. They’re like monthly payments. Half of my deals are without monthly payments and by the time I’m done, 100% of your deals could be without monthly payments. They take time. I wanted to buy a duplex. The place appraisal is okay, the credit is okay, it took the bank four and a half months to make up their mind. That’s crazy. I could have lost a deal.
I’ve got an offer accepted on a Monday and own the property on a Friday, the same week. That’s how quick it is. Then you’ve got no relationship with the bank but you think you do. You are loaning into a sense of security because you’ve got somebody’s name and their business card. I’m here to tell you got error, because they can quit, retire, get laid off, get promoted, and you’ve got to start all over again. Or they change the rules like they did on me. You are disqualified from borrowing when you have too many properties. They’ll shut you off.
Why would you have somebody throttle your business like that? You got poor credit. They aren’t going touch your income doesn’t satisfy the bank. They aren’t going to touch you. The biggest economy of all is so many of us get into real estate to get out of our job and the day you quit your job is the day the bank will quit you. How do I know that one? It happened to me. I quit my job, after I’d been in this bank for many years and instantly they shut me down. You’re building your business plan on sand if you’re going to a bank to get your funding because you want to get out of your job someday. The day you quit your job is the day the bank quits you. You don’t want that to happen. You want to continue with your business and that is the beauty of what I’m teaching you on private money.
Just think about the loans from a bank. They asked for a stack of paperwork, credit, a couple of pay stubs, and tax returns and you take it into the bank. You go back home, and you wait, and you wait and finally, the phone rings and they lost a piece of paper. You got to take in another piece. I’ve seen that happen a number of times to folks and to myself too, way back when. Let’s say they finally give you the loan. What happens? If you want to do a second deal, then you got to jump through those hoops all over again. I want to show you a better way. This is my way. I borrow money from a private individual. I call them private lenders. They loan the money to me. I buy and fix and sell the property. They will get their principal and accrued interest back when I sell the property and they’ll call me up and they’ll say, “I got my money back. I didn’t want my money back. I wanted you to keep giving me this nice rate of return. How do I get this money back to you?” The day you sell the property using private lenders funds, they are begging you to take their money.
How would you like to have people beg you to take their money rather than you begging for money or out of money and get stuck? I assume folks who are here use the hard money lenders. I was too. If you don’t have private money, this is an okay way to go, but they’re expensive. You need to know that going in. For example, $100,000 loan at 15% down, that’s money coming out of your pocket that you got to put down on the deal. That’s a boatload of money. That’s $15,000 and then they get paid. They get paid via points, so five points is a percent. The same example, $100,000 loan and five points is $5,000. I remember back when I did a deal and I have $5,100 coming out with the hard money lender. Now, same size loan, $875.
I’d rather have you be the hard money lender and I have students doing that by getting private money. Then you’ve got to call up your own case for renovations. You’ve got to dig into your pocket the second time and then you do the demolition work, bring it up to a certain level. You call up the hard money lender. They will send an appraiser that you pay for and if you did what you said, they will start giving you some money they held back for repairs and they call that draws. One, two or three draws is typical. With a private lender, when I walk out of closing, I got the same key and deed that you had when you bought it with a hard money lender.
On the other hand, I got a fistful of cash, which is 100% of my rehab money. Then you’ve got to pay the hard money lender back at a certain period of time, like twelve months. What happens if you do all your sweat and effort into the deal and you get to the twelve-month period and you don’t have this place sold to refinance? On month thirteen or fourteen, I would assume it could go back to the hard money lender. This is not the same as a private lender. In fact, they’re happy to let you keep the money out there for a long, long period of time. What does a private lender look like? The first one looked a lot like my mother. Mom had come into some money when dad passed away and she did what most folks would do. She plunked it down on a bank certificate of deposit. In fact, she would drive 45 minutes one way to get a penny’s more on a bank CD. While I’m coming up from our real estate education and I thought hard money lenders and private lenders, I thought these terms were interchangeable and after awhile, I had figured out that a hard money lender has those rules I talked about.
With the private lender, I got to set the rules. I want you to think about that. How would you like to set your own funding rules? I went back to mom and I said, “You’re getting a poultry low rate of return on a bank CD. I’ll pay you three, four, five times what you’re getting on a bank CD. I’ll pay you simple interest only and I’ll pay you monthly,” and mom jumped for joy and started to loan me money. My whole goal was to become a full-time real estate investor and finally, the window of opportunity opened up for me. The company had a lay off and they were looking for volunteers and I volunteered. After seventeen and a half years with that company, I quit. I was the first person in HR and let them know that I was going to be full-time because the company offered me a package, so I would get paid for a few months and I thought that would be a nice way to bridge the gap with my business.
I stepped out as a full-time real estate investor. The only problem with it is there was a downturn in the rental market. I had to evict some folks and I ran into a negative $10,000 a year cashflow problem. That’ll pique your attention. Banks wouldn’t touch me. They shut me off the day I quit my job. I got thinking about what do I need to do to solve this big $10,000 a month problem that I had? I realized that the answer to my situation was to embrace having private lenders. What I did was I only had two private lenders at the time, mom and, along the way, I gotten a guy by the name of Ed. I realized that I needed to get private lenders fast, but there wasn’t a roadmap. People tell you to get private lenders, but they wouldn’t tell you how. You think the ‘how’ is important, it’s critical.
What I did was I decided to do a group meeting. I put together a PowerPoint slide presentation. I was very skilled in that in corporate America. It was natural for me to put that together and call a meeting. I get to talk to people one-on-one like I did with mom and dad and got money, but I want her to move fast because of this negative $10,000 problem. I called this meeting and I got to tell you, that morning I didn’t know if I was going to be alone in the room or if there’s going to be a ton of people in there. What happened was eighteen folks showed up. I got up and I told him about my real estate business. I told them about my dreams and my aspirations.
I showed them that PowerPoint slide presentation. I asked them to loan me money and it worked. It worked so well I did it again the next month. I had about twelve folks show up. I did all over again. I asked for money again and a couple of months later, I got a pad and pen and I added it up and I had a million dollars to go buy a property. How many books out there could use an extra million dollars? I’m thinking a bunch of you. I found the roadmap, and that’s exactly what I’m going to teach you. I’m known all over the nation as a guy that’s cracked the code on finding private money and you can do the same by learning a few simple things that I’ve done.
Deals you can use private money, notes, use it on that. You can use it on apartment complexes for the whole thing or as a down payment rehab, commercial property. About 35% to 40% of my student base does commercial using my system and single family homes. Subject to deals where they deed you a house subject to the mortgage and you can bring payments up current and do some minor repairs with the private money. Fixer uppers, you can retail, buy, fix and sell or you can buy and hold. Financing on those, I do a little bit different. With the retail, I use a higher interest rate. Simple interest only, but if it was a buy and hold, what I’d like to do is a lower interest and amortize it just like the bank does on your personal residence. Wholesale deals, a lot of my students are doing wholesales and they need a safety net and the safety net is private money. If you do a wholesale deal without a safety net and you get down to where your contract’s ready to expire, you could lose your earnest money, your auction fee, and you can lose the deal altogether.
I never want that to happen to you. What I do is I can fund it with private money and then I never lose a deal in a wholesale after the fact if I need to. Then short sale, which are rampant in the industry. Here’s one of mine. This thing is on five acres. There’s a pond out front, a stable, a pool, and a barn in the back and a stream across the back of the property. In my area, this is a $200,000 property. I know for some folks around the nation that this would be a $450,000 or $650,000 property. I live in a low-end area. The first mortgage was pursuing a foreclosure. It was a $128,000. I want you to understand, I could borrow private money on this and funded this whole thing, but what I wanted to do was I wanted to get a lower interest from the bank on this and take that over.
They said that for $14,000, I could cure this. That didn’t make it a very good deal. It had a second mortgage at $44,000. They’re in trouble. They know if this thing goes through, they’re going to get wiped out. By the time I was done negotiating with them, they said for a measly $4,400, they would wipe out that second mortgage. Instantly, I knew I had a good deal. I called up a private lender. I had him send in the money to cure the first and to wipe that second out and three months later, I sold the place and I walked away with $43,214. How many folks out there could use an extra $43,214 just for flapping your lips? Which money did I have into these? Nothing. Not a dime in either one of those mortgages. It was all funded by a private lender. Can you see that private lenders give you the ability to move fast and do deals that banks won’t touch? A bank wouldn’t touch that. A hard money lender wouldn’t have touched that.
If you like the idea of buying a property at discount, I built the discount into that one through negotiation and because I had all cash, I could pull the trigger on it and that’s the way I want you to do the deals too. Imagine you being the loan approval committee. There’s only four parts of a real estate deal. The second item is so critical to everybody’s success. Everybody needs money. You want to do bigger and better deals if you’ve been out there for awhile. If you’re brand new, you want to do your first deal, and in any case, you’ve got to have money to do that. You get to approve the loan. If you see something you want to buy, just go buy it. You are in total control your financing. Imagine the power of that statement in your life where you’re in control.
Let’s talk about one of the biggest items that can cripple your business, whether you’re a beginner or a seasoned investor and that’s poor cashflow. The biggest hurdle you got to get over every month typically is the monthly mortgage payment. Let me talk about the deal that I got. The property there, I could have bought for all cash. The seller wanted all cash for it, but I saw it had a low-end first mortgage and I wanted that low-end mortgage to be left out there because it was more than I was going to pay my private lender. It makes financial sense. The seller was desperate to sell, but she needed $39,000 in cash. That was the magic number to have her deed me the house. That’s still left a lot of equity in it. I called up a private lender. The private lender sent in $50,000. I paid off the seller. I got the key in the deed. I got $39,000 in cash. I walked out also with $11,000.
We’re taught in real estate that you get your money when you sell the property. How would you like to get money on both ends when you buy and when you sell? That’s what I did here. What I did was I got $11,000. What did I do with it? The property needed a little bit of TLC and curb appeal. I had $8,000 leftover. I can do anything I want with that. What I did do with some of it is I started making those monthly payments on that very first mortgage. The lender, she sent in $50,000 for this. She was a mom of one of my employees and she has worked a job all her life and had a 401(k), a qualified retirement program. In that qualified retirement program, she left it in the company when she retired. I came along, and I said, “You could roll that money over into a self-directed IRA and then loan the money to me and get a higher rate of return.” She did that.
I got started in this business back in 1995. I had my first private lenders two years later, my mom in 1997. What happened was the going rate back was 15% interest. That’s what I started to pay. Over time, interest rates changed in the marketplace and I get feedback from my private lenders that 15% was too good to be true. I lowered my interest rate to keep them happy. I went to 10% and 12%. I did a split rate. I did it 10%, if they would take monthly payments, 12%, if they’d let the money accrue and they get paid when I got paid. What surprised me, I didn’t think anybody would take the 12% because I thought everybody was like my mom where they wanted monthly payments. What happened is, half of my lenders took the 12%. What that did is opened up the door for me, the flood gates of private money because of having people with 401(k)s roll it over into a self-directed IRA. This is the pot of gold for you.
If you know somebody that has quit, retired or gotten laid off and they got one of these big 401(k)s, they can roll the money over into a self-directed IRA and then loan it to you. Now, they’ve got a big chunk of money out there. If they need money to work off of, they can pull it out on a monthly basis to live off of it, but then they get a big chunk that they want to make it grow. That’s where you come in. You can do no monthly payments with these folks and when you sell, the property or the note, then they get paid off with a higher chunk of money. I ended up making $45,900 on this deal. How many of you could use an extra $45, 900 on the deal? How do you like the idea of not having those monthly mortgage payments? I would think everybody out there would love that. Imagine skyrocketing your cashflow by getting some of your profit when you buy? The big question is how much money do you need to do a deal? Not a penny. Once you learned how, whenever you need more money to buy a property, you plug into your system and more money comes out.
Why would folks loan you money? Let’s take a look at their options. This is out of the USA Today, America’s newspaper, on the Green Money tab, they will have CD rates. I liked going to the one year. Do you see 0.26? That’s about 25% of1%. It’s up a little bit right now. Last time I looked at it, it’s 0.44 which is pathetic. Let take a CD. Let’s say it’s at 0.0026%, that’s $260 in a year. You put $100,000 in the bank and it takes a year to make. That’s a pathetic. Stock market, how’s that working out? That’s how it worked out for me many years ago. At one point, this is how it worked out. That’s the way people tend to think about investing. What about you and me? What about real estate? What about notes? Say $100,000 at 8%, that’s $8,000 per year. That’s a heck of a lot better than $260 that they’re getting. The issue is they know about CDs, stock market, the lottery, but they don’t know about us. That’s where my system comes into play, is teaching you how to attract people into your life as private lenders.
Private lenders are ready to write you a check to buy a property just by you picking up the phone. In fact, it’s like ordering pizza. How many folks like to get money like you get pizza? The next time you get a pizza, think of me. How many like the idea of having an army of people begging you to take their money? I want you to think about that. You can buy a property for all cash using somebody else’s money, you have no monthly payments. Will banks let you to do that? No. They’re in it for the payments, but private lenders will and landlords, I got a cookie-cutter for you. You buy a property with private money, you fix it with the private money, you refinance and there are two ways you can do that. One, is with a normal lending institutions, or you could be in a private lender and amortize a loan like I talked about and then you rent it. That is a cookie-cutter. You can build an empire. How many lenders do you need for that? Just one.
This lady called me up that was living in this house and she says, “Are you one of the We Buy Houses folks?” I said, “Yes, I am.” She said, “I bought this house nine months ago and I’ve never made the first payment and for some reason the bank wants it back. For pennies on the dollar, they’ll sell it by the end of the month.” The kick on this is the fact that the end of the month was five days away. That’s a show stopper for some folks. If you’ve got private money, money’s a phone call away just like ordering pizza. I went over and looked at the place. I thought I can make some money on it.
I went ahead and closed the same week and I walked out of closing that day with $17,045 because I always borrow extra. If you run into a problem with the property after you buy it, you sure can. I always borrow extra. The second thing I want you to write down is don’t take every bit of profit out of this property. You want a bigger chunk of money left at the end. I took $70,000 out and then when I sold the property total, including that $70,000, I make $31, 945.How many folks out there could use an extra $ 31, 945? I think every single one of you. I didn’t have one penny in that. Can you see that you’re able to buy a property at a discount because you’ve got all cash?
Let’s talk about how we find motivated sellers. We put up signs. I used the yellow bandit signs, ads, in flyers, Craigslist ads, business cards, and websites. When a seller calls you with something, you want to be able to perform. What can it cost you if you can’t close the deal because you can’t get funding? It can cost you a lot. It can cost your reputation, which is the worst thing it could cost you. It costs you the deal, but it also costs your time, effort, and money implementing all those techniques. It costs you all your time, effort and money, learning those techniques. When the rubber meets the road, you better be able to fund the deal and that is the beauty of what I’m teaching you on private money. Are you curious about how I find people who loan me millions?
There are three steps to finding private lenders. Number one is generate leads. Number two is send information to them or invite them to a luncheon or just have a one-on-one meeting, whatever your heart desires and then they pass or play. They’re either in or out and I show them my first luncheon and I’ll show you I fixed it. On generating leads, I have found sixteen ways. That’s a lot. Sixteen ways to find private lenders, ads and postcards and if you want to advertise, you got to ask for permission to advertise so you can’t jump off this training and go advertise. There are some rules to follow, but then you can. I can either do it on a one-on-one meeting or at a luncheon or I can send them information. When they call in, I don’t take the calls. They go to an answering service or a voice mailbox and then I call everybody up around dinnertime and make sure they got directions and see if they want to bring somebody else. It’s a very simple way to get private lenders. You generate leads, you invite them to lunch or just a one-on-one meeting, whatever you like and you get an answer.
There are four steps to a fundraising luncheon. You schedule it at a nice place for an hour, you send a postcard or you could run an ad or you could do a mailing, whatever you want to do, and you respond to the voicemail and then you hold the lunch. It’s really easy. I’m showing you the cookie-cutter that I didn’t have when I got started that people wouldn’t share. Why I like luncheons? They’re quick and simple and there are only two reasons to have a luncheon. Number one is I can talk to a bunch of people all at once. You can get money from one-on-one and my students are getting millions or you can have a luncheon and get millions. It’s whatever you desire. I’d like to have luncheons because I can talk to a bunch of people all at once. The other thing too is your conversion rate skyrockets. You want to talk first and eat second. You set them at the table across from somebody else to where they want to carry on a conversation and every single time they will talk about your program and they’re looking for peer confirmation and they get it and the conversion rate goes through the roof.
I’ve got a time-saving checklist. I believe in systems. You’re seeing my system right now with private lenders and I created a checklist for my first luncheon. It is used throughout the nation, Canada, Australia, and other foreign countries and it is a step-by-step on how to do a luncheon, but you can also use the checklist, pieces of it, for one-on-one meetings. It is invaluable and people love a checklist and that’s how I got started. When I had my first couple of luncheons, I thought I was going to have luncheons every month for the rest of my life and I ended up with a million dollars. I could back off and not worry about that and if I ever needed more money, I just crank up the luncheon again.
Let me tell you how I ended up here on this training. I had no inclination to be a speaker and what I only wanted to do when I quit my job is to buy and sell real estate. What happened was I had this $10,000 negative cashflow problem going on. I had to solve it. I had these two luncheons. I had a million dollar show up. What that did is right there my business shifts to where I was financially sound again so I can continue my real estate education. The foundation of this business is what we’re doing is all these speakers and all this education that you’re getting. It is phenomenal what’s going on here. That is critical to your success. I started going to live events. I went to an event in Vegas and the guy running it went around the room and he said, “What are you doing different?”
I was a few rows back and I didn’t have a clue what I was going to say. Have you ever had that where your mind just goes blank? What happened was I had a little bit of time and I got to tell you, I wasn’t a speaker. I didn’t want to speak in a group. I didn’t even want to give out any information at that point because I just was too shy to talk. The light bulb went on just before he got to me because I wanted to contribute. Everybody else was contributing. I said, “I got private lenders and it’s been great in my business.” He slammed the desk and he says, “That’s great, Alan. You’re speaking in Cashiers, North Carolina next month.” I didn’t think I want to talk to that crowd, let alone go speak anywhere.
I wasn’t a speaker. I thought, “He’s got other speakers coming in. I should go on in and get good training on this and suck it up and go ahead and give a talk on how I got private lenders. I went to it and I sat in the back of the room. I kept my head down. I was hoping he forgot about me. I got through two and a half days of this three-day event and I’ll be darned, just before lunch, he said, “Alan, come on up here. Let’s hear what you got.” I got to tell you, my hands went sweaty, my knees start to knock. I thought, “I don’t want to do this,” but everybody’s looking at me and I was committed to do it. I went up in front of the room and I had a presentation that I had given my new private lenders.
I put that on and I looked out and people were taking notes and they started asking me questions and somebody asked me out to lunch and I got to tell you I was, I was all alone for two and a half days, but that day, three carloads, full of real estate investors were taking me out to lunch. They seated me at the front of the table. They ask me more questions. They took more notes. Somebody bought my lunch. I thought this is a good day. I remember driving back to the afternoon session pulling into the gravel parking lot and there’s this guy looking for me.
Sometimes that can be bad news. This has to be great news. This guy comes running up. He says, Alan, I want to buy your slides.” I said, “My slides aren’t for sale.” He got into his breast pocket on his coat. He wrote me a check and he hand me the check. I handed him my slides. I didn’t do them for sale so I got that check. Then I walk up to the door and there’s a lady there and she says, “Alan, I want to buy your slides.” I said, “Some guy in a parking lot just bought it.” She said, “That’s okay. You send me some.” She got in her purse, opened it up, got out her checkbook, wrote me a check. I walked into the room with two checks. I’m getting ready to sit down. Some guy comes running up, all out of breath and he says, “Alan, I want to buy your slides.”
By then, I knew something good was going on and I didn’t know what the heck to do with it. Fortunately for me, the guy running the show saw what was going on. He got me over in the corner. He said, “You got something that real estate investors got to understand and do.” He said, “I want you to put on another presentation here.” He had me in front of 150 folks two months later in Jacksonville, Florida and it hadn’t stopped since. I speak all over the nation about 35 times a year. I do about 85 webinars and it has been exciting and changed my life and it’s helping a heck of a lot of folks. Step one was to generate leads. Step two is get some information to them. Step three is they’re either in or out. Into my first presentation, my first luncheon, at the end, I said, “Let’s have lunch.”
The problem with that is they need some direction from me and I needed some feedback from them and neither one of the got it. On my second luncheon what I did was I said, “I want you to get into the packet and on the left-hand side, I want you to fill this form out and I’ll meet you in the back of the room and we’ll have lunch.” Can you imagine that you had your very first luncheon and people are walking by you and handing you this form and you get down to the bottom of the page where the dollars are at and you thumb through this and you realize the people just loan you a quarter million dollars. That’s how instantly this happens and some people are getting a lot more than that. I’m just using that quarter million as an example.
I went through my mailbox and then I had brunch with Fred. He’s one of my private lenders. The nice thing about knowing people with money is they get you into other things. He got me into oil wells. Right now, I have 45 oil wells because of Fred, but that day he wanted to have me meet some other potential private lenders and there were three people sitting across the table. In the middle of the brunch, the guy in the middle shoves a form across the table to me and had a dollar amount on there and he wanted in. I didn’t even know he had the forum. Fred gave him the form. How would you like to get a lender like that? When you’re with a system like this, how many folks think about getting up in front of a small group so you can get big chunks of money? Normally, when I asked that question to a crowd, about 80% of the room raised their hand. Then I turned around and I say, “How many folks are afraid of public speaking and feel more uncomfortable in front of twenty folks because you’re more afraid of public speaking. I’ll have a few people creep their hand up and they don’t even want to raise their hands in a crowd like me way back when. You know what people say about speaking in front of groups? They’re more afraid of speaking than death.
What’s that say about the typical funeral? You’d rather be in the box than give the eulogy? What’s the logical thing to do? The logical thing to do is do a one-on-one or just send out some key information to these folks. Half my students do one-on-one, half of them do luncheons. It’s whatever floats your boat, whatever you desire. During a loan process with a bank or a hard money lender, you’re going to be approved and you hate that feeling. It makes you feel like you’re begging for money. I can relate. I’ve been there many years ago. It is so much better with a private lender because you just pick up the phone and order up money.
Let me show you a better way. I’ll tell you about another one of my private lenders. I told you about living in my mom. Let’s talk about Blanche now. Blanche came to the second luncheon. Remember, I had two luncheons. She came to the second one and she had one of those yellow little tablets with water writing on it. She asked me a bunch of questions. She was relentless. I didn’t think she’s going to let me up and I successfully answered all her questions. I thought maybe she came to make my life tough with all these questions. I got through and I remember her walking out the door and I thought this lady doesn’t have two nickels to rub together.
I’ll be darned if she didn’t come back and loaned me $25,000, $35,000, $15,000, $45,000, $100,000. It got up to $230,000. How much of you out there would love to have a Blanche in your life? That’s part of the story. Her sister loans me money. Her son loans me money. The only problem is she got a real estate course. She bought a property dead straight across the street from one of my rentals. I can stand on my porch and wave at Blanche across the street. Half those questions, I realized, was about real estate and the other half was about loaning me money. These three lessons are so critical to your success. Number one, is don’t prejudge I prejudge.
I prejudged Blanche and what happens is you don’t know whether they got money or whether they got friends that have money. Your job at beating me now is to get out and tell people you pay a high rate of return and let the chips fall where they may. Number two is they test you. She started me out at $25,000 and got me up to nearly a quarter million dollars. They all test you. How about if I give you a goldmine technique that can make you a ton of money right now? What I want you to do is I want you to up the ante. If somebody comes to you and they say, “I want to loan you $200,000,” I immediately want you to say, “If I find a deal worth $400,000, should I call you?” I always like to double the number, whatever they say.
A lady came to one of my live events and she said that she found a private lender and agreed to lend her$100,000 so she used my up the ante any technique. If I find a deal worth $200,000, should I call you? She said by the time we were one, we were up to $900,000 and that only took her about twenty seconds. How would you like to jump $100,000 to $900,000 in twenty seconds? Number three, they become your best sales folks. Her son and her sister loaned me money. How would you like to have private lenders bring you more private lenders? One private lender brings you two? Two can bring you four and you up the ante on every single one. Just imagine your private lenders bringing you more private lenders. You ever had a bank bring in more banks? They won’t do that, but private lenders will bring you more banks in the terms of private money lenders.
Blanche had money on the property. I painted blue and put the shutters on it, put a furnace in it and sanded the floors and I sold the property and I walked away with $34,747.19. Could you use an extra $34,747.19and not have one penny of your money in it? Then she thanks me for taking her money. She said, “I appreciate the opportunity to earn above average interest. God bless, Blanche.” The best benefit is you get more deals, the more profitable is using private lenders and forget banks. How’d you like to do deals and never talk to a bank again? When I say this in my live event, everybody in the room raises their hand. A lot of my lenders have IRAs. You can’t lend to yourself, child or parent. When my mom loaned me money, it was not IRA money. We’re talking IRA money here. She had money on a CD. You can’t lend up and down the family chain yourself, child or parent. You can have brother and sisters and then you could also loan out your own money. You’re creating your own private bank here.
The Wall Street Journal said this self-directed retirement account, individuals can pursue a wide variety of investments from real estate to businesses. Now, at least several thousand people are trying to use their retirement savings by using self-directed IRAs to invest in mortgages. This is the pot of gold for you or notes, invest in notes. Luncheon alternative, I created an audio CD, a 22-minute CD that I just handout. This is my favorite way to get private lenders. I hand out an audio CD. It’s a very compelling audio and I hand it out and the first one of those I handed out, a guy comes along and loaned me money. It was that easy. How would you like to have the ability to make offers with confidence? The word confidence I get is a theme from my students when they give me testimonials or if I talk to them personally. They tell me about the confidence my system has helped them and what I’m teaching you to go get private lenders.
If you’re beginner, then when you went into your first real estate seminar, what’s the next thing that you do? You go out and you make offers and then you’re paralyzed because you don’t know how to fund the deal or it looks like a great deal, but the seller wants cash. Tell your new lenders that you’re looking for someone to get in on the ground floor. It sounds like it could go away and it can, you can get so much money you can’t spend it all. How would you like to have so much money you can’t spend it all? I had that happen to me. I had so much money, I couldn’t spend it all, so I hired a guy to go spend the money. In my case, I’m buying a property. I hired him in between mid-September and Christmas, he bought me 21 properties with my money and then from the first of the year through August, he bought another 69.
That’s a lot of private money in there and it’s also great to have that much money. You could take that thing. I jacked up my real estate business, but what you could do is become a hard money lender. The benefits of a private lender are unlimited funds, speed to buy, cash flow because you’ve got that contingency money. Remember that $17,000 that I borrowed when I bought the house and the $11,000 on the other property? You’ve got that contingency. If you’ve got a problem with the property, you’re covered. There were no monthly payments and you get to make the rules on this. There are more benefits. There are no credit checks because private lenders don’t check your credit. It saves you money, it makes you more money. It’s flexible.
In my case, I paid my lenders on the 15th for the ones that I’m doing monthly payments on. Why? I’ve got tenants and they’re supposed to pay on the first and sometimes they don’t. I put a little gap in there to give me time to get the money in. You can do deals that you could do any other way back. it’s cheaper to have a partner. I’ve had two partnerships and what happened on those, it’s like a newborn puppy all cute and cuddly and I’ll be darned if both didn’t turn into ugly dogs. You can fund or purchase it with a folded paper and you could buy at a discount and you get two streams of income if you want.
Using private lenders is the best because it puts you in control of your financing. Isn’t that enough? If the only thing private lenders do is putting control of your financing then that is enough to embrace the concept of getting private lenders and get out there and make your life better. It goes on. It’s the easiest because it’s not a lot of work. It’s the cheapest because the most expensive funding you will ever, ever have is the day you can’t close and it’s the safest because you can borrow extra, which will help you so you don’t run out of cash because that’s one of your biggest concerns on that. The best, easiest, and cheapest, there’s no other funding source that can match all four of those and private lender concept is revolutionary in our business.
I wanted to sell this property. I wanted to sell it for all cash. A guy comes along and says, “I got credit bruises. I can’t do that, but my wife loves the kitchen and loves the house. I’ll put $40,000 down on the property,” and there’s a check. I took his check for $40,000 down. What do you think I did with the money? What I did was I took the wife to Vegas and she likes to go off out in front of Bellagio and so we’re sitting there . Isn’t that part of this business doing nice things for your family? That’s part of it. Imagine the impact that one person giving you private money, just one. Let me tell you about a student of mine, Troy Wilkinson. He got to meet me at a live event.
He said, “I’m really blown away by your program.” Talk about paradigm shift. After twenty minutes of presenting your private lending slide presentation in his office on our laptop, he interrupted, and he asked, “What could you do with the million?” None of us could sleep that night. I met Troy. He never heard of private money before. Before the end of the day, he got his hands on my system and twenty days later, he sent me this letter and told me about the gentleman who wants to loan him $1.4 million and that millionaire is connected to other millionaires. You talk about a life-changing event for Troy. It happens over and over to my students.
Some of you are thinking, “I know somebody who’s got a lot of money, an uncle of mine and maybe they want to be a private lender.” If you will jump off of this training and you go ask them for money and they ask you questions and you can’t answer them, then they could say no. It’s hard to go back to the well the second time. I want you to hit range out of the park home run right off the bat. You need to be prepared. Why risk getting caught off guard with questions you can’t answer it? Without the right approach, you could be dismissed as a fly-by-night. There are some rules out there. They’re easy to follow, but they’re hard for people to find. They usually don’t know where to look. Notes and memory, they’re not enough. You need a system. I want to talk to you about my Millionaire System. This is the one everybody wants to get their hands on.
There are three parts to my Millionaire System. Let me tell you the components of this thing. It’s got the 37 blue slides and the 24 forms. It has all the advertising, complete scripts. Why not use my words to go find private lenders? It’s got a special report for lenders that you just hand out it answers questions for them. Lenders will have some questions. I created this report of twelve questions and they might just read down through that and see the one question that answers the situation for them and they come back and loan you money. All the work is done for you. It is so simple. I created a template and you go fill out that template and you go to this page, you hit the enter button and in less than ten minutes, you are ready to go find private lenders. It is that simple. It’s a fill in the blanks. If you want to pay 8% to a lender, you just put that down. If you want to change that a month from now, you go ahead and change it and go back to the template and change it and all 24 forms or fill out with your company, your information, your phone number, and you’re good to go.
There’s a brand new video just created in the last couple months to where I teach you exactly how to use the fill in the blank. You can do it without the video, but we thought we’d do that to help some folks and then folks who advertise. You can’t jump off this training and start advertising. You have to know what you can do, and so what I do is I give you that training, give you that information and give you the forms within the system so that you can go out and advertise.
So many folks want to advertise to find private lenders. This powerful, one-of-a-kind website is only available with an investment in the Millionaire System. It’s a huge costing saving tool and you’re armed with data that even many SEC attorneys don’t know about. You can explode your money supply with these marketing tools. Ultramagnetic postcard and Craigslist ads for you to raise millions of dollars, a tri-fold brochure to establish credibility and a phone script to excite and reassure prospective lenders you’re using my words to talk to lenders. It is a no-brainer. All you have to do is follow my script. I’ve got audio to train you. It’s a Private Lending Learning Library, which has eight audio CDs of me teaching you how you can attract private lenders. I got off the phone with a student And she was telling me how these things are incredible and how she loved them. You’ll be able to answer the toughest questions with confidence. You’ll know the right way to position yourself to overcome lender skepticism and win their trust.
I’ve got a Quick Start Manual. I want you to hit the ground running. I want you to write this down. The first thing I want you to do when you get the Millionaire System is get inside the Premium System and listen to the audios. I have seen students do nothing more than listen to the audios and they’ve got their first private lenders. There are five steps in implementing the system. I just gave you the first one, listen to the audios. The second is going to be reading the manual and you can go on through here and get the five steps. I’d give it to you on a on a sheet in front of the manual and I give you a Quick Start Manual and an audio CD, a 45-minute audio of what I did behind the scenes to attract private money. In the audio business card, you get duplications on rights on that. I want you to hand it out like water and I want you to listen to this.
What I did was it was my voice on there at one time, but what I decided to do was move it up a big notch. It’s a 22-minute audio with a radio talk show host on it because of his voice. He got a very great compelling voice. What I decided to do is put it on my audio CD and my students love it. It’s so great because when they hand it out to private lenders, they listen to the whole thing and that’s what you want and credibility. Private lender’s loan you money based on the fact that they trust you. It is important that you come across as very credible. What I did early on was I created a Credibility Kit. The reason I did this is because I walked into a house I wanted to buy, and I have very motivated sellers because the wife had a boyfriend and so I walked through the house and sit down at the kitchen table and I had the husband and one side of the table, the wife on the other side, and she said, “Prove it.”
She said, “Prove what you told us that you can do.” I walked in without anything in my hand. They were thinking about harassment or something like that. I went out. I gathered up information and by the time I got back, my competitor had bought the house. Ever since then, I had a credibility kit. This works wonders with private lenders. I have multiple use for this. I can use it for buyers, sellers, and my private lenders. You get it on a CD-ROM and you can emulate me. There’s a page on me, a page on the company. I wanted to talk about my education. I talked to you about the foundation of this business being what we’re doing right now on this wonderful opportunity that you got on all this training, and all these great speakers that you got.
What I wanted to do was I wanted to illustrate my education, but we don’t typically get a certificate when we buy a home study or go to an event. What I realized is that Office Depot has certificate papers. I just went out and made my own. I went out and got a pack of paper, come back and I made my own certificates and it’s a blockbuster. It’s awesome because what’ll happen is people will come through there and they’ll stop and they’ll read all the different education that you have. In some cases, I even send it off to the trainer and let them autograph it and have a self-addressed stamped envelope where they’d send it back to me. You can use this easy system for a step-by-step system for luncheons or one-on-one meetings, or you can just hand out the audio business card, which is my favorite and let them come to you.
Here’s what Gilmack says. He says, “Your specific and complete and go step-by-step, just the way reptile brains needed.” Not only am I going to do a luncheon, I’m training a staff member to do it as well. Thanks for that confidence boost in the tools to work with.” Didn’t I tell you they told me that the system gives them confidence? This system is very simple to use. It is extremely well put together. It is used out there throughout the nation, in Canada, Australia, and some other foreign countries and people love my system. It’s easy to use, it gives them the confidence and it gives them the tools and the knowledge to go get the job done. Another student, Tony Braddock, said, “I raised private money from one-on-one presentation at least half of it. Gilmack was doing luncheons.” That is a split of my student base. Half do luncheons, half do one-on-one. He said, “I quit my Fortune 500 six-figure income job and 60 to 70 work week and it’s truly been awesome. It changed my life forever.”
Wealth System, this is the second part of the Millionaire System. Let’s talk about it. What was happening on this was my students were using the Premium System and getting money, but then when they got their first private lender, what are they doing? This was born out of necessity. The Wealth Management System was developed because of the success my students were having with the Premium System. They had to play the role of a bank. I decided to come recluse for a couple months and put this system together for them. I was getting questions like these: What documents does a lender get? What closing costs are involved? Should you give the lender appraisal?
How do you deal with a promissory note? When do the payment start? When did they stop? You put a mortgage on the property, how do you handle lender money personally? How do you set up second mortgages with the other lender? How do you handle IRA money? It stays in the lender, IRA, question mark. How do you handle escrow? There are many, many more that my students were asking me. The thing about it is dealing with a private lender is extremely simple. The thing of it is if they ask you a question, you want to be prepared to answer it. That’s what this system is all about. The system answered them all with a very simple, straightforward, systematic way.
Here’s what you get. You get the manual, The Essential Guide to Managing Private Money Manual. You get an eight-pack of CDs so you can understand the private lender process with these. You get eight with a premium and now here’s the second eight. You have sixteen complete IRA information, documents, forms and reports the CD-ROM, filled necessarily letter, forms, spreadsheets and templates. The system covers the entire A to Z proven thought process for managing private lenders with the competence and confidence of a seasoned banker. No trial and error, no space for failure, no waste of time, money, or energy. It will save you hundreds of hours and thousands and thousands of wasted dollars.
It prevents dispute with your lenders. I want you to think about that. I’ve been in this business for a couple decades. I have never, ever, ever had one dispute with a lender. What I did was I put in the Wealth System all the things that I used so that you will never have a dispute either if you follow my techniques and the way I manage. I treat my lenders like gold. I’ve never had a dispute and obviously you don’t want to have one either. The lenders are great. The right time and way to get the money, your lender is a streamlining lender maintenance activity so they don’t eat up your time, keeping a positive cashflow correctly close escrow so the lenders can reinvest their money and the ins and outs of setting up IRAs, which is the pot of gold.
Here’s the third leg. The third part of the millionaire system. The first part is the premium, the second part is the wealth, both of them a home study system. I’ve got eight attorney created audios. I hired an SEC attorney to research every State in the United States and Canada and when he got done he says, “I want to thank you.” I said, “Why is that?” He said, “I’m moving into my new house and you just bought it.” That’s not what you want to hear from anybody that you bought their house, but it gives you an indication of the dedication and moral obligation they had to you to make sure you had the facts. The rules I found out how incredibly simple.
What I want to do is take the valuable information that attorney had and put it on an eight-pack so that you can listen to it. On the very first audio alone, there’s twelve question or answers that I went through with him. Everybody would be on the same page on how simple it is and know what you need to do. It gives you the knowledge of what’s not allowed also. You want to give your private lender a disclosure statement. I give you mine and you can do it as a fill in the blank, but I would still run it by somebody or an attorney to make sure that the I’s are dotted and the T’s are crossed.
This, according to my attorney, saves you about $1,500. Mine is nine pages long, and it gets you started. What do you have to do to have all the money that you would ever, ever need? Let’s say you opt not to get the Millionaire System now, which I think would be a horrible choice, but let’s say your time time’s worth $50 an hour and I’ll give you 80 hours to go find everything you can. That’s $4,000. I know maybe you aren’t making $50 an hour in your job, but aren’t you on this to make more than that? Let’s make sure that your time is handled properly and get you homerun on this. Many times, we talk about being in real estate, you make $100 an hour for every hour you work.
That’s 4,000 presentations, a hundred hours on that, about $50 bucks an hour. That’s $5,000. You’re saying, “Wait a minute now, why 100 hours?” You’ve got to realize where I was at. I quit my job. I had a meeting coming up. I wanted to hit a grand slam out of the park home run and I nailed it. I want to make sure that words came in when they were supposed to. I nailed it and I walked out of the two meetings with a million bucks. I’m sure you’d love to do the same. If you want to come up to my level, then you’ve got to dedicate the time. Then you’ve got to go test it. Twenty hours of testing, that a $1,000, but even when you get done with 20 hours of testing, you aren’t sure where that’s at my level or not.
Mine’s already tested throughout the United States, Canada, Australia, and some other foreign countries. If you want to come up to my level, you’ve got to put it in there, put the time and then SEC knowledge. This is stroke when you chat for an attorney and I got the dollars in their very low, $200 an hour for an attorney. I pay my attorneys $325 an hour. Twenty hours of their time, it’s $4,000. That has a $14,000 and my system is worth every penny of that, for some of my students. I can’t charge you up per system. $10,000, I’ve had people put on private lending boot camps and who do you think they had come in as a keynote speaker? They asked me to come in and that was worth $10,000. I’m the key speaker on their private money event. I can’t charge it for home study system. Real world value for the three systems is $2,391. That’s what I sell it for right out of the office, $2,391.
You’re only thinking, I would learn all the ins and outs of using private lenders on your own in 80 hours. The first thing you’re going to do and maybe the only thing you think you’re going to do is go to out on the internet and look up stuff. Can you get back information out there? You get horrible information out there. What I do in the Millionaire System is I give you a laser beam approach of how to attract and convert people into private money, which is what you want. It’s all focused on making you successful. There wasn’t a roadmap when I got started, but this is your roadmap to get you started. What you’re going to get in the Premium System, for $997 by itself, the Wealth Management System is $797 by itself, the SEC learning library is $597 by itself. That is up to the $2,391. That’s what I sell them for right out of the office.
You see why it’s a good deal? At $2,391, because you’re here on this training, what I did was I knocked the price down big time to only $997 which is what the premium sells by itself. It’s $997 and down there at the bottom, you see a link, http://bit.ly/AlanCowgillPrivateLending. That’s how you get your hands on this. I thought I’d give it to you right now. I’ve got a few more training to do here. I’ve got a certificate where I will help you for a year and the year starts when you want it to start. I’m here to help you. If you aren’t ready for me for three months, four months, that’s fine though. This is a hotline, but I got to limit this. The reason I got to limit this is because my wife likes to see me every now and then. I spend a lot of time with my students. I want to make sure I take care of you. I would ask that when you do get a hold of me that you put your phone number down, so many times I’d give you a call and I got to limit those. It’s the first nineteen folks that jump on this, you’re going to get me. I know we’ve got a ton of folks on this thing. The first nineteen, you’re going to get me and you get me for a year and I will help you get private lenders. You get my personal fax, personal email, and I’m here to take care of you.
Here’s what Ted Schilling said. He said, “I got my first lender after we talked on the phone.” What happened to Ted was he was working 70-hour work weeks and hated his job. He wanted to be a fulltime real estate investor but needed private money to do that. He got my system and he sent me an email, put his phone number and I called him up and I said, “What can I do to help you?” He said, “I’m taking somebody to the airport right now. What do I say to him?” I said, “You already got it. It’s in the premium.” He said, “I know but I’m leaving in fifteen minutes. Help me out.” I gave him the same script that’s in the Premium System. On the way to the airport, he got a half a million dollars. He had gotten out of this job and he’s still smiling .
You’re going to get answers to questions that would take you years to learn on your own if you’re able to be one of the first nineteen. You will be able to move fast on deals because I’m in your corner and access to me as restricted. I got gatekeepers. They’re great people, knowledgeable, but if you want to work with me, you need to jump on this right now. It gives you the direct line to me. This is bonus number three because the first bonus is where I discovered the price on the System. Bonus number three is a hot list of private lenders. There’s the link again, let’s talk about this. I can give you a list of private lenders throughout the nation and they are hot lenders that have loaned money and I’ll teach you how to do it and how to be safe. There’s the template. There are hot private lenders that have just loaned money. They aren’t cold. They’re already trained, and they know how to do it.
Here’s what you’re getting. You’re getting a Premium System at $997, the Wealth Management at $797, SEC Learning Library at $597, the reduction in price of $1,394, which is huge. My hotline with me, $2,500. How to get that? I charge $5,000 for one day coaching. I had to come up with a number. I don’t know how much time we’re going to spend together but I have to come up with a value on that. That’s how I got that. Then the Private Lender List, which is $2,000. You get mine that comes with the system. If you get on this, it’s $2,000. That is if you want to go out and search for lenders within your state on your own. Bonus number four, this is money for a day. This is transactional funding where I will fund a deal for a day. I’ve got millions in loan. You get a proof of funds letter in 30 seconds. There are no credit checks on this. I’ve got an audio of one of my private lenders. I call it my fear elimination audio. It is bonus number five. It is incredible because it shows you how they need us more than we need them. Bonus number six, free upgrades for life. That’s my life. I upgrade the system and people are getting free upgrades.
Bonus number seven is Nine Ways to Pool Money. Some of you, if you want to pool money out there, this is four audios and an e-book I did. You get the Premium System, the Wealth Management System, the SEC Learning Library. Bonus one, is price reduction, bonus two is me. The Hotlines Tutorial, the first nineteen folks. You’ve got to jump on this right now, private lender list, transactional funding, fear elimination audio, free upgrades and pooling system. That adds up to $9,907. That is actual prices of what I sell things for. I want you to get started now. It’s $997. You can get started now, $1,394. Just think of the closing costs you’re going to be saving on the very first deal. If all this did was finally make your business profitable or more profitable, would it be worth it? If all this did was give you a general kick in the butt, would it be worth it? It gave you access to millions of dollars, a phone call away, would it be worth it? Enable you to do your very first deal or notes, would it be worth it? Think about one lender’s worth to you.
How would you define the difference between a JV agreement with a 50-50 split and a private money loan?
A JV with a 50-50 split with a private money loan, you get to keep it all. They’re going to get paid whatever you pay them, interest and all that, but with a JV split is they’re going to get half of your profit. I’ve had partners and the two partnerships I had, they turned into ugly dogs. The only thing I’ve got to say on that is, if this is your very first deal and you’re desperate to get money, it’s okay to do that, but you’re going to find after the very first deal that you gave away a lot of money that you didn’t need to give away.
What are the solicitation guidelines to be aware of when advertising online for private lenders wanted?
It goes down two paths on this. The first path is for people that you’ve known for a month and you at least have three contacts with him. You can ask him for money instantly. If it’s a stranger out there, like I said before, there are some rules on that. What’d you have to do is fill out a piece of paper and pay a small fee and then be able to advertise to get strangers. I don’t set the rules, that’s what I hired that attorney for to figure that stuff out. It’s very simple. The problem that people run into is that they don’t know what the rules are and they go out and they make this mistake. One of the things I did in the Premium System is I put four chapters in there on the rules. I’ve got four chapters on the rules and you got eight audios right from my attorney.
All of this information on that part of it is from my attorney because I’m not an attorney. I don’t give legal advice. The four chapters in there, people find that invaluable. They love that. Also, there’s a third area. When you download the forms, there are two buttons. One button is the 25 forms that I created all filled out with your information. The second button, when you’re ready, you click on that and it’s all your State forms and that’s important because you can take those into an attorney rather than have them go out and research. There are a lot of attorneys that struggle with this because they don’t understand what we’re looking for sometimes.
How do you qualify people prior to inviting them to a luncheon?
My favorite luncheon is people that you know. What I don’t tend to do is worry about what you’re asking about as qualifier or screening them. People could show up and even if they don’t have money, they might know somebody that could be your best lender ever that does have a lot of money. What I do is I invite people that I know. What I found is they won’t tend to drive the long ways. If you know somebody that’s an hour away, they probably aren’t going to drive and come to your lunch. You need to be looking for people that are fifteen to 30 minutes within range and they’ll come to the meeting. You just let the chips fall where they may but start off with people that you know. That’s the best way and if you want to go the other way with strangers, you fill out a paper and pay a small fee and then you can go with that. What I do there is I would get a list broker and I would ask for certain things. I like people that buy things through the mail. I might put a limit that they have to make $100,000 a year. I like working with doctors because they have a lot of discretionary income. That would be my target group.
Is there any satisfaction guarantee period?
You got seven days to check my system out once you get your hands on it. If it’s not for you, you get a prompt and courteous refund. I want you to be happy. The first thing I want you to do is I want you to listen to the audios and you will fall in love with my system. It doesn’t take you long to see how easy it is, how valuable it is, and how much key information it has for you.
Thank you for coming out and speaking with us. We really appreciate you.
I’ve done podcasts and radio shows and TV shows, but I’ve never done one as well-organized like this. This has been great and you’re great and I hope everybody out there is doing it. I know I might have zipped along there, but I wanted to get all the training I could in the timeframe that I had. I wanted to make sure I delivered everything that I could. The only way I can help you going forward is if you get your hands on the system. I’ve been around for a long time. I’ve been very successful at this and the reason being is because it works. My system works and it’s incredible and you will love it. You will not be disappointed. The folks out there need private lending so desperately as they do the business. I’m tickled that you had me and I’m tickled that everybody was on here and I hope you loved it. I hope you enjoyed it.
If you guys have nuggets that you’ve picked up from Alan’s presentation, please feel free to post those on Facebook and in Basecamp for us and the WCN Crew and let us know what you think. Thank you, Alan.
You too. Take care.
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About Alan Cowgill
E. Alan Cowgill is the owner of Colby Properties, LLC. and President of Integrity Home Buyers, Inc. Alan invests in single-family and small multi-family properties in Springfield, Ohio, where he and his wife raised their three children.
Since 1995, Alan has done hundreds of real estate transactions. Alan uses private lenders to fund his real estate purchases. Alan looks for “win-win” situations, where the seller, the lender, and the eventual homeowner can all win. He is not a realtor, but a private investor.
Alan has served as an elected official on the Board of Directors for the Clark County Property Management Association. He is an author, consultant and national speaker. He has been asked to speak on the topics of investing for the beginning investor, and finding private lenders.: