Hey there, real estate investment junkies.
This is Jason (“The Money Man”) Medley with a special lesson today about how to get those awesome private lenders to fund your investment deals.
Read on as I lay out exactly what to say to secure those precious dollars.
How to Get ‘Em
As a Real Estate Mogul faculty member (hold the applause, thank you very much) and an experienced private money expert – to the tune of $200 million+ in real estate transactions (no applause needed, really) – I know as well as you, that private lenders are vital for our business.
In fact, they are often our bread and butter, if you will.
But once you’ve reeled them in, what in the world do you say to land the deal? Have no fear, Moguls, I’ll break it down for you right here – nice and easy…
Once you’ve got potential investors listening to you, there are two key elements to focus on:
-
establishing trust
-
and piquing interest
Look, with hundreds of thousands of dollars on the line, they’re certainly gonna want to know, “What is it that you do?”
Well, that could be a loaded and complicated question, but instead you’ll want to offer them a very nicely crafted “elevator speech” – one that clearly and simply describes what you do, by establishing trust and piquing their interest.
And the cherry on top is this: You can do it in a way that might actually have them wanting to ask you, “How do I get involved?”
Game. Set. Match!
Just remember, it’s not about you. It’s about the people you are getting involved.
Here’s the first part of your new quick and dirty answer:
“I’m a real estate investor here locally in [your city], and I basically show people how to receive a 10-15% return on their investment, secured by real estate, which has been purchased well below market value.”
With this “value add” answer, you’re offering the investor three big reasons for them to trust you:
-
You’re local.
-
The investment will be safe.
-
And you’ve provided specific numbers for their expected returns.
Seal It Up Good
Go ahead and give yourself a nice mental pat on the back for delivering such a great answer.
But hold on, Mr. Fancy Pants, you’ve still gotta seal the deal.
But how?
Investors will want to know that you’re helping other people in this process, that you care about them as an investor and you’re helping them get a better return.
So, with conviction, you’ll smash it outta the park by following your initial explanation with something like this:
“I get to grow my business, and in the process of doing so, I get to show other people how to make very handsome returns, which are typically much higher than the returns they’re currently making on existing deposits in the bank, money markets or CDs. Hey, do you know anyone who would be interested in earning 10-15% return of their money on a safe investment?”
You’ll see the wheels start to spin inside the investor’s head, as it all neatly comes together for them.
And you’ll probably be thinking to yourself, “This is great! If they lend me the money for this crazy good deal I’m working on, then I’ll have the ability to close quickly, with cash, without qualifying… Hooray!”
And they’ll be thinking to themselves, “I could get a much higher return than what I’m currently getting on my other investments at the financial institutions and brokerage firms… Hooray!”
It’s really a slam dunk, win-win scenario, folks.
This is good stuff, right?
Want more?
(Of course you do!)
Then don’t forget to check-out the replay of my recent Mogul Live training call about “Becoming a Money Magnet”. Back in August, we used this training call for elite members to explore a few “wicked smaht” ways to have lenders fighting to fund your deals.
Specifically, we used that opportunity to discuss four other terrific marketing techniques to utilize when you’re meeting potential investors.
We examined how to identify people who can use their IRAs to help you fund your deals – and then how to take the profits they made at a higher return and put them back into the IRA, tax deferred. (Because everyone loves a twofer!)
The training call’s audio replay is now supplemented with a good ol’ transcription, for your reference, so go ahead and take a look.
Be Prepared – It’s not just for the boy scouts anymore! You’ve gotta know exactly what to say to bring the deal home. It’s important to know your craft well and be prepared to answer questions with confidence (and simplicity), so you can walk away with some cash.
Establish Trust and Pique Interest – You’ll be thinking “nailed it!” after you’ve created interest and given good reason for the investor to trust you (by offering a higher yielding return on their safe investment).
Close the Deal – Explain that you care about the investor, and explain your desire to help them get a better return than they’re getting elsewhere. Ka-ching! (Both for them and for you!)
Review Jason’s Recent Training Call – Click here to review Jason Medley’s recent Mogul Live training call about how to become a “money magnet”, if you are an elite member.
Expand your Real Estate Knowledge – Want even more Money Man goodness? Click
here to review Jason Medley’s other helpful lessons. (You’ll be glad you did.)