(NOTE: What it's like to write a $1,000,000 check for a sweet piece of undervalued real estate … even if your bank account is overdrawn and you owe the local lawn boy $20? This special report shows you step-by-step.)
Hey hey, Patrick Riddle here…
Short and sweet – that may be today’s lesson in a nutshell, but short and sweet packs a powerful punch when it comes to asking for private money.
So how do you do it? How do you ask someone for private money?
This is a question I get over and over, and for good reason. Asking for money isn’t easy, but it doesn’t have to be so hard. Here’s what I mean…
Manage Your Mindset
That negative feeling you have toward asking for private money – it’s all in your head!
You’ve got to change your mindset.
I propose, no – I know, that you’re not really asking for money. Rather, you’re presenting opportunities to the right person.
Think about that.
Are you asking for investors to do you a favor? Absolutely not! This negative “used car salesman” (no offense to our car salesman friends) approach will hold you back and stifle your success.
Realize instead that you’re doing them a favor by offering them amazing investment opportunities!
Mr. Right, Not Mr. Right Now
Here’s the other key ingredient to managing your mindset about asking for money…
You’re presenting an opportunity for the right person, not just any Joe Bagadonuts.
You’ve got to qualify your lenders and find out if they’re the right fit.
Ask if they’d like to know more about what you’re offering… This is so powerful, because it shows your vested interest in matching appropriate opportunities rather than just making the quick sale.
And that means instant credibility and likeability for you.
Say it out loud! Soften your proposal by telling your investor, “Hey, I’m not sure if you’re the right person, but let’s find out.”
A Little Visualization Goes a Long Way
So you’ve put it out there. Your investor knows he may not be the ideal match for your investment opportunity, but now you need to start asking probing questions to find out.
The number one question you should ask is:
“What would the right investment provide for you?”
The key is getting your prospective investor to visualize a positive experience with your investment opportunity without specifically mentioning your opportunity.
Having your prospect imagine retiring one day with complete financial security, going on that dream vacation, feeling secure in their financial future… is powerful stuff.
Having your prospect associate those images with your investment opportunity just might mean a hand shake and a deal, closed.
Remember, borrowing private money is all about changing your mindset then asking powerful questions. The more you can tweak your investment opportunity as just that – an opportunity – for the right person, the better chance you have of finding private money.
Manage your mindset! Understand that you’re not asking for money, you’re presenting opportunities.
Find the right private money investor, not just any investor.
Ask your prospective investor what the right investment opportunity can do for them.
Create that association between the prospects financial goals and your opportunity – it’s the key to your success.
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.