What’s Holding You Back?
- WEALTHY: Are you afraid to make tons of money? (Alan Cowgill)
- HEALTHY: The surprising health benefits of Indian food (Jon Herring)
- WISE: Dale Carnegie on conquering fear
ALSO IN THIS ISSUE:
- A lesson in bad marketing from a couple of dentists (Michael Masterson)
- That new pet’s gonna cost you (Suzanne Richardson)
- Add "McGuffin" to your vocabulary
He’d Have Called Them Crazy - Or Worse!
With the Internet, it’s now possible to spend no more than a few dollars, write a couple of very basic ads, and have instant access to millions of potential customers all in a matter of minutes.
If anyone had told Jim Sheridan he could bank thousands in just 24 hours. . . without any product of his own. . . without spending a penny on getting it or promoting it, he’d have justifiably said they were nuts.
But Jim made a decision that he would overcome his skeptical nature and give it a go. Boy, is he glad he did! That one deal alone banked him $187,296 in one day.
The great news is - you can copy Jim’s plan exactly. The program is called Instant Internet Income and I guarantee it does exactly what it says it does.
Take a look at how Jim brought in over $175,000 in a single day!
- Patrick Coffey
"Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy."
Dale Carnegie
What’s Holding You Back?
By Alan Cowgill
Using private money helped Gary Brevko go from making $250,000 a year to making $30,000 to 40,000 a month doing real estate full-time. He’s not alone. I have countless students whose real estate income took off after they learned how to use private money for their investments.
But surprisingly, not many investors cash in on this unparalleled opportunity for making money.
In my experience, there are only three reasons real estate investors don’t take advantage of the tremendous benefits of using private lenders:
- They don’t know what a private money lender is, or don’t fully understand how much money using one can make them.
- They think they don’t have the time to find investors.
- They are afraid, pure and simple.
The first two obstacles are easy to overcome.
Who Can Tell Me Exactly What a "Private Money Lender" Is?
About five years ago, I learned a lesson I’ll never forget. I came across a foreclosure on a $150,000 property that was going for only $70,000. I’d hit the jackpot! It was almost too good to be true. But - every real estate dealer’s nightmare - I didn’t have the available funds. I went to the bank. I tried to extend lines of credit. But raising money that way takes time, and time is exactly what you don’t have with a sale like this.
As you can guess, I didn’t get the property. By the time I had secured funds, it had been sold to someone who had the cash ready and could close within days. In this one deal, I lost a potential $60,000.
I swore then and there that this would never happen to me again. And it never did … because then I discovered private lending.
A whole new world opened up to me. And my investing has never been the same. Imagine: limitless funds that are constantly and immediately available. Today, I have more available capital than I do property in which to invest it.
Private lenders are everyday people. Some are retired, some work. Some have substantial investment capital, and others have only a little. They may want to make the most of the savings they’ve spent their lives building, or perhaps they suddenly came into money through an inheritance or property sale. Regardless of their backgrounds, all private lenders are looking for a safe, high-yield opportunity for their funds.
I give my lenders a guaranteed 10 to 15 percent return on their investment, and their investment is secured by both a mortgage and hazard insurance on every property.
There’s nothing like it anywhere. The win-win reality of private lending is unparalleled. The incredible thing is that most people don’t know about it.
Why Private Money Is Faster Than Traditional Financing
If you’ve ever gone through the process of buying real estate using a traditional mortgage, you are familiar with the mountains of paperwork and the waiting. (If you close in less than four weeks, it’s a miracle.) With private money, you can close immediately. You never have to pass up a deal because of lack of funds.
The important distinction to understand is that with private money, unlike traditional financing, you get the money lined up before you find the deals.
To many investors, this seems backward. To others, it sounds time-consuming. But the truth of the matter is, I have a file full of letters from my students who have raised $100,000 or more in less than 30 days. Esther Headly raised $240,000 in less than 24 hours. Dr. Dipak Patel raised $4.2 million in just 11 months.
It is not difficult to find private investors - that is the easy part. The difficult part is that third obstacle: fear of the unknown.
Overcoming Fear
If there’s something you’re afraid to do, you can always find a reason not to do it. How do I know that? I’ve been there too. Even when I realized the banks were losing me deals, I procrastinated.
Sometimes, we won’t even admit to ourselves that we are afraid. We tell ourselves we do something because we are too busy, too tired, or focused on other "more important" issues. So the first thing you need to do is admit that fear is actually what’s holding you back.
I remember sitting in a potential investor’s office and being too uncertain of myself to tell him that I was looking for private lenders. I didn’t have the nerve to ask him for the money. That day, we both lost. I missed out on getting money to run my business, and he missed out on earning a tremendous interest rate.
I was afraid. And part of the problem was that I wasn’t entirely sure how private money lending works, so I didn’t have the confidence to try to explain it to him. I needed to educate myself and get some outside help.
I remember my first deal. My knees were knocking. But an experienced real-estate investor walked me through the whole thing, which was a lifesaver. I also got a solid education through two home-study programs I purchased, a few library books on creative real estate investing, and a local REIA seminar.
After I made that first deal, the fear monster was gone and I was ready to do it again.
You’ve already taken the first step toward increasing your income right here - by learning a little about the advantages of private money lending. The next step is to get the education and mentorship you need to overcome any lingering fears.
Start by investing in books and/or programs about the specifics of finding and analyzing real estate deals. Both traditional and "creative" real estate financing are covered in countless books in the real estate section of your local library, so you should have no trouble finding one with useful advice.
If you choose to focus on residential properties, you might try ETR’s Main Street Millionaire program by Justin Ford. If you’re more interested in apartment complexes, check out Dave Lindahl’s Apartment House Riches.
You may find that attending live seminars is an easier way for you to learn. As an ETR subscriber, you’re frequently notified of opportunities to attend Bootcamps and other live events with reputable real estate professionals.
As your knowledge increases, your fears will disappear. And before long, you will be approaching private money lenders with confidence … laying the groundwork to be able to instantly pounce on every great real estate deal you find.
[Ed. Note: Alan Cowgill’s Private Lending Made Easy program is the only one on the market that specifically explains how to find and manage private funds. If this topic interests you, a great way to get more information is to attend the free teleseminar that Alan will be giving exclusively to ETR readers next week. It’s a no-cost way to build your knowledge base and find out if private money could help you increase your income this year. Reserve your seat now.]
Could You Use An Unlimited Supply Of Money To Do All The Residential And Commercial Deals You Can Find?
“Alan, I had some private lenders before, but your system has blown the roof off my business! I’m buying more houses than ever, and finding it much easier to do commercial property.
For example, I recently bought a foreclosure for $60,000. It needed $5,000 in repairs. So using your techniques, I financed it with $70,000 from a private lender at 10%. Instead of making a down payment, like I used to, I put $5,000 profit in my pocket the day I bought the house. And I’ll be selling it shortly for $120,000.”
–Clark Fletcher, Quincy , FL
‘Blow the roof off’ your real estate profits using private money. No credit or employment history needed. Alan Cowgill will explain it all in an exclusive teleseminar - limited seats available now.
Reader Feedback: "I am in awe at the amount and quality of the work."
"I have just received the Bootcamp DVD’s and I am in awe at the amount and quality of the work done in such a short period of time. They are really great.
"I have worked many years with many people under many circumstances and conditions. Michael, you are one of those rare few who seem to be comfortable with yourself and where you are in life. You are obviously intelligent, honest with a sense of humor, and full of plans of what might be. You make others feel comfortable, not complacent, just comfortable -and that is a wonderful thing, for it frees a person to concentrate and think big. Thanks."
Judith Pazmino
Covington, KY
Arthritis Relief From Your Spice Drawer
By Jon Herring
A recent article in USA Today told the story of a woman named Darci Jayne who was suffering from persistent pain and swelling due to arthritis. In an effort to improve her eating habits, Jayne took an Indian cooking class and began to season her foods with curry spices several nights a week.
An interesting thing happened: She noticed that the pain and swelling from her arthritis would subside shortly after she consumed the spicy food.
She might have been surprised by these results, but I’m not.
Turmeric, one of the primary spices in curry, is known to relieve the symptoms of arthritis. In fact, recent research published in the journal Arthritis and Rheumatism showed that injections of turmeric almost completely eliminated joint swelling in rats that were bred to develop rheumatoid arthritis. Numerous population and laboratory studies have also shown that the use of turmeric is related to lower rates of breast, prostate, and colon cancer.
Spices - especially turmeric - are some of the most healthful and bioactive foods available. Not only will they add flavor to your food, but, quite possibly, years to your life. So next time you are at the supermarket, pick up a bottle of curry powder or pure turmeric to complement a wide variety of dishes. You may also consider purchasing turmeric as a nutritional supplement. You can find it at any health food store.
Notes From Michael Masterson’s Blog: Welcome to the Neighborhood
It was a blank, hand-addressed, number-10 envelope with a "live" stamp instead of metered postage. Inside was a simple letter - two single sheets of white paper with black printing (Courier font) on one side. At the top of the outside sheet was pasted an ersatz million-dollar bill. No headline. The salutation: Dear Neighbor.
The letter began:
"As you can see, we attached a One Million Dollar Bill to the top of this letter. Why have we done this? Actually there are two reasons:"
This prospecting letter came from a pair of dentists who’d recently moved to Delray Beach - and it was clearly written by a professional copywriter. Whether the dentists had hired someone to write it or picked it out of a book, I couldn’t tell. But it was well done.
The benefits were simple and simply stated: "Besides the excellent care you will receive, our staff will always make you feel at home, and we will always give you an honest assessment of the condition of your mouth. You will never be pressured into receiving any treatment that you don’t want. Is that fair enough?"
But the offer was weak: "So come in, show us this letter, and we’ll give you 10 percent off your initial visit."
My guess is that this letter achieved a high "open rate" (the number of people who opened the envelope) but a relatively low response rate (the number of people who acted on the offer).
It could have been a lot stronger if, for example, they had offered a free $100 consultation plus a basket of goodies if you make an appointment by a certain date. Or maybe a tooth-whitening treatment and a sample of a new whitening product. A consultation is, after all, an opportunity to establish a profitable relationship. And a free treatment can be the first of a recommended series of four or five that can be profitable.
As we teach in our Direct Marketing University program, when you are opening a new business - and this is especially true for retail businesses (a dentist’s office fits this category) - the most important thing you can do in the beginning is bring qualified potential customers/clients/patients into your place. A qualified person is someone capable of buying your products/services and recommending them to others. You can accomplish the qualifying requirement by making sure you are sending your prospecting pieces to the right neighborhoods (.i.e., the right zip codes).
Direct-response advertising is the most efficient and effective kind of all … unless you weaken it with a weak offer.
- Michael Masterson
It’s Good to Know: First-Year Costs of New Pets
By Suzanne Richardson
Thinking of getting a pet? Just keep in mind that it could be more of a financial commitment than you bargained for.
Here’s how much, on average, it costs to take care of some popular pets for the first year. (Averages include food, medical care, grooming, toys, carriers, collars, and other accessories.)
- Small bird: $195
- Fish: $235
- Small mammal (like a mouse or hamster): $340
- Guinea pig: $645
- Cat: $715
- Small dog: $810
- Rabbit: $911
- Medium dog: $1,190
- Large dog: $1,580
(Source: American Society for the Prevention of Cruelty to Animals}
How Much Money Can YOU Make By Copying This "Mistake"?
How did Vicki Smith accidentally ‘hotwire’ the Internet and turn it into the goose that laid the golden egg?
Well, imagine a huge fortress with steep, heavily defended walls and a great big, drawbridge to get through. Inside that fortress is the huge pile of wealth there is to be made on the Internet. Now imagine trying to scale those walls with no equipment and never having done anything like it before. That is what many people try to do…
But what did Vicki do? By mistake, she got ‘lost’ and wandered around the back of that fortress and found a ‘hidden’ door which lead straight in. A solid gold door which opened up a gateway to riches…
It’s an opportunity which really does work, that anyone can follow and put into practice quickly in just an hour of your spare time from home.
Read about Vicki’s good fortune…
- Patrick Coffey
Word to the Wise: McGuffin
The McGuffin is a plot device (named by Alfred Hitchcock and often associated with his films) that motivates the characters and advances the action. It’s something the entire story is built around - and seems to be about - yet has no real relevance.
Example (as used by Hap Erstein in a review of the play Monty Python’s Spamalot): "As in the film, God - or at least his legs and finger - urges King Arthur to go on a quest to find that ultimate McGuffin, the Holy Grail."
[Ed. Note: Increase your income potential … become a more persuasive writer and speaker … build your self-confidence and intellect … become more attractive to others … just by spending 10 VERY enjoyable minutes a day with ETR’s new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007