Want to learn how to significantly increase your success in getting private money?
Who doesn’t, right?!
Hey Mogul’s Patrick Riddle here, and I have great appointments that resulted in terrific private money lending… and then, of course, because we’re all human, I’ve also had some that were not great and ruined the chance of obtaining private money.
So today, I want to share with you 5 financing ‘don’ts’ to avoid…
1) Negative Attitude
This is first for a reason – it affects every aspect of your life, both professionally and personally.
Simply put: There is no substitute for a good attitude.
Act and think negatively, and that’s what you’ll bring into your life.
But if you think positively – ‘Yes, I can get private money for my deals!’ – you will get it!
This isn’t tomfoolery or hocus pocus. It’s legit. Sure it can be hard sometimes to stay positive or not be negative – but work at it. It’s worth it.
“If you think you can do a thing or think you can’t do a thing, you’re right.”
~Henry Ford
2) Bad Meeting Location
I know some investors who do this and have success, but I don’t… I don’t like giving a presentation over a meal. Like a lunch meeting.
I think it takes away from the true purpose of the whole meeting.
Having said that, I still advise you to give it a go. Just because I’m not a fan of this approach, doesn’t mean it can’t or won’t work for you. I strongly encourage you to try it out…
If it works great for you… keep doing it!
Here are what I think are some ideal private money meetings locations:
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Coffee Shops: I love me some Starbucks. I’ve done tons of private lender presentations while java brewed in the background. The reason I like it so much is because it’s a “neutral” space. The private lender prospect won’t feel threatened by being on your “turf” (i.e. your office) And please, please, please remember this: offer to buy your prospect a drink or snack. A little common courtesy goes a long way.
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Office or a Conference Room: Don’t have an office? No problem, just ask an associate or colleague - title company, attorney, accountant, Realtor – if you could use one of their rooms. This is a super easy and professional approach.
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Prospect’s Home: This is a good possible alternative. Maybe meeting at your prospect’s house is more convenient for them. Make things easier for them and the appointment is already set up to go well.
3) Sloppy Appearance
This should be a no-brainer, but you have no idea how many times I’ve had to jump in with this palm-to-face advice…
Look in a frickin’ mirror, people, okay?
You need look well-kempt and nicely dressed. Clean cut, well groomed, folks.
Do you need a suit all the time? No – it’ll depend on who your prospect is. If they’re a corporate kinda person, then yes, go with a suit to match them. If they’re an entrepreneur who’s more laid back, no suit needed – but still look put together.
Here’s what I mean – you need to make an effort to dress at or above the level at which your prospect will be dressed..
4) Be on Time
Don’t be the white rabbit and run late for a very important date…
For heaven’s sake, don’t be late to your appointment!
In fact, you should be there EARLY. At least 10 minutes early. Not only does it look good, but it’ll also give you a few minutes to prepare, breathe and get your thoughts in order.
Another thing I shouldn’t have to say, but always do…
First impressions are important!
Being early and well-prepared shows your potential private money lenders that you’re a responsible professional and you respect their time and schedule.
5) Don’t Be a Know-it-All
Being confident is one thing… being a snarky, egotistical know-it-all – is not good.
And P.S. - It’s okay not to know everything… you don’t know everything anyway. Nobody does.
If the potential lenders asks you a question that you’re unsure about, simply say this:
“Great question. And I want to make sure that I’m 100% right before I
answer that. I’ll write it down and get back to you soon.”
Okay…
Now you know some big things to avoid when working on getting private money for your real estate financing strategy.
Are you guilty of these big “don’ts?”
Look, if you’re new to getting private money, these tips will be super helpful… and if you’ve been working on this financing strategy already, well, you’ll probably be even more successful by following my advice.
At some point, these will simply become ingrained in your brain and you won’t have to think about them…
And, these meetings themselves will become second-nature, and you’ll have more private money to accomplish your real estate investing goals.
Get to it.
Add More
Got any tips you’d like to share? Let us know below.
Live with a positive mindset and attitude and you’ll attract good things.
Be on time – always!
Look presentable.
Choose your meeting location wisely.
Be confident, not a cocky.
Patrick Riddle
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.