Real Estate Investing – How to Use Postcards and Letters to Raise Private Money

Let me guess, your real estate business is struggling? It’s no surprise…actually most industries in America are reporting significant losses for 2008 and worse is expected to come in 2009. The mortgage industry in particular is struggling because real estate is the last thing on many people’s minds right now. Potential homeowners are hesitating to buy a new house, just as lenders are hesitant to approve major loans.

Your goal should be to leave the traditional lenders to their paranoia and seek out new interests-from Private Lenders. Private lenders are the ones who have the money to lend and who are anxious to discover the next investment that will provide yields than CD’s or money markets.

But how does the average investor find private lenders. We market for them. One way is to use postcards and letters. Postcards and letters are not new but they work.

Both of these options can be used to solicit interest from high net worth individuals. Your first step is to purchase lists of high net worth people and then send a postcard or letter to invite them to get a free report or invite them to an informational seminar. The goal is to entice them to listen to you one-on-one, at an in-person meeting or a seminar. Then you can use the opportunity to talk about your real estate investing business and the option of private lending.

Be sure to send cards or letters to people within your state and do not cross outside your state. This will eliminate the need to register with the federal SEC.

What is the difference between letters and postcards when it comes to advertising? Aside from costs, postcards provide a very strong visual image with limited information. This is ideal advertising for someone in a hurry, or someone who has a visual mind and wants to “see” the results of your proposition. Postcards are also a good idea for someone who has already received a letter, or attended your seminar, and who just needs a kind reminder.

You might assume that since the Internet is what everyone uses, that it’s pointless to advertise through any other medium. Wrong! People still read newspapers and still receive mail. In fact, people are probably more likely to read a physical document addressed to them (one of 5 or 10) than they are to read over one of the thousands of virtual ads they see online everyday.