Previously, I told you the importance of writing three things: a business plan, a list of prospects (everyone you know), and a pitch letter. With those three things completed, you have only one more all-important step before you start contacting people. You need to write out an elevator speech.

You may be wondering what an elevator speech is? Not to worry- it's just what it sounds like. Let's say you are riding in an elevator with someone you've never met, and she asks what business you're in. the elevator speech is your response, which should sound like you just made it up on the spot, but in reality be well-thought-out in advance.

Don't forget, this is referring to your investing business and private money, not your 9-5 job, as exciting as that may be. I'll give you one example of an elevator speech, and you'll see what I mean: "I buy, sell, and rent single family homes, and to finance those deals I use a tight-knit group of select private lenders, who enjoy returns of twelve-fifteen percent. I have room for one or two more lenders, and if you want, I could share the details with you."

You have to admit, that's pretty powerful! Sit yourself down and, referring back to the business plan and pitch letter you wrote earlier, write your own elevator speech. Polish it until it sparkles. It only needs to be 2-5 sentences, and then you can memorize it so your delivery will sound unrehearsed and natural.

Now that you have finished writing your foundational materials, the time has come to start getting in touch with the people on your list. Call, write, or email... it doesn't matter how you contact them, but once you reach them let them know the purpose of the contact, and that you have a proposal for them. Explain private lending in simple terms, and ask if they would like to consider being a private lender for your real estate investments. Tell them you wouldn't mind answering all their questions one on one, and be sure to emphasize what's in it for them (the benefits)!

Another possible way of handling this is to book a meeting room at a public place, like a library, restaurant, or hotel, and hold an informal seminar to give out information to your prospects all at once. Don't be intimidated! Just invite the contacts on your list, and several of them will surely say yes. That's music to your ears!

In the next article, I will give you details on how to prepare and plan your informational seminar, so watch for it.