Demo To Dollars

Beyond the Interest Rate: What Makes Private Lenders Say Yes


Listen Later

Send us a text

Ever wondered what's really going through a private lender's mind when you're pitching your real estate deal? Forget what you think you know about raising capital – this episode flips the script on everything.

Most real estate investors completely misunderstand what motivates private lenders. Contrary to popular belief, it's rarely about the interest rate you're offering. These aren't faceless institutions – they're doctors, business owners, and retirees looking for something more valuable than a few extra percentage points: security, simplicity, and someone they can trust.

We dive deep into the psychology of private lending, breaking down the three critical questions every potential lender asks themselves: How will I get my money back? Do I understand this investment? Do I like and trust this person? Master these elements, and you'll never struggle to fund another deal again. I share specific strategies to address each concern, including how to demonstrate multiple layers of protection for their capital, how to create a perfect one-page lender summary that builds confidence, and how to establish the emotional connection that turns a skeptical prospect into a long-term financial partner.

The episode features real-world examples, including how one of my lenders used his self-directed IRA to fund a $200,000 flip and received a 12% return within six months – with zero hassle on his part. I provide a step-by-step framework for transforming your approach from "selling loans" to "offering solutions" that help people achieve their financial goals while you achieve yours.

Whether you're just starting out or looking to scale your existing real estate business, understanding this private lender psychology will dramatically change your success rate in raising capital. Follow the show so you don't miss our next episode, and start implementing these strategies to build your own network of private lenders who fund deal after deal.

Want to learn how to flip houses?

CLICK HERE to learn more about our upcoming boot camp, Flipper Camp.

...more
View all episodesView all episodes
Download on the App Store

Demo To DollarsBy Ed Mathews