Never before has there been such an exciting, effective method for financing residential real estate investment property. If you are an investor, or would like to be, you must take a few minutes and read this brief introduction to one of the most flexible, powerful, creative ways to find the money for just about any kind of real estate deal you want to do. Using the leverage of private money will put you on the same level as investors having twice your experience, because you'll have nearly limitless capital. Below you'll find a few preliminary steps to get you ready to create your own private money for real estate investing empire.

Your first step to gaining access to all the private money you could ever need is to take stock of yourself. In other words, sit down and write out a brief business plan, outlining your method of operation. Answer the questions an investor would be likely to ask such as, what are your investing goals, and how do you plan to reach them? Be specific, and state what types of properties you will buy, whether you will hold them or sell them, what kind of discount you will be able to get, and what your profits look will like.

You'll need to take your time with this and not rush, because it will pay off for you later. This plan you are writing will become the foundation for two more components of the system- your elevator speech and your seminar presentation - which I will cover in a future article. Make certain you are not long winded, and you are specific, and keep your potential lender in mind as you work. It may even help for you to think of one specific person as you write, and write TO that person. Add details about deals you have already done if you have any. If not estimate, but do so conservatively.

Your second step is to write a list of every single person you know. This will be your "list of possible lenders" and will be a very valuable tool for you. You'll keep it and add to it forever. No time for judging now whether someone is worthy or able to lend you money. The rule is, if you know them they go on the list, no matter how long or how well you have known them. When a name occurs to you, write it down. Get help from others to remind you of people you forgot you knew, and try hard to make as complete a list as you can.

Take your time and don't speed through this. Then, after getting a good start on your list, put it away for a few days, even a week. When you pick it up again, you'll have thought of a whole slew of names you forgot before. Finally, carry the list around with you for a week or so, adding names as you think of them.

Once you have what you believe is a complete list, start adding contact data such as email, street address, and telephone #. The goal is to have at least one way to contact each individual on your list, and you want to make sure the data you have is good and current. Once you start getting in touch with these people, you won't want to stop to get addresses and such. You'll be too excited! A little extra time spent here sets you up for massive success later!

Finally, write a letter. Yes I said a letter, but don't panic. The hard work's done. Just take your business plan and scale it down and personalize it. You're going to write a letter explaining your investing to your list, and telling them exactly what you're looking for. In other words, be upfront and specific. Tell them you invest in real estate, and what kind. Tell them you're looking for private lenders. Most importantly tell them the benefits of loaning you money. In other words, tell them what's in it for them.

Don't let fear stop you from doing this, but take your time and do it well. Even if you have to rewrite the letter several times, it's worth all the effort to get it right. This letter will become the backbone of all your future private lender efforts. Think of at least five benefits your lenders will realize by loaning you money, and be sure to include them in your letter. Get your letter in tip top shape, and you've completed your preparation. You're now ready to go out and start finding private lenders to use for your real estate deals.