From Patrick Riddle, Funding Adviser...
In the deal funding arena, trying to impress a potential private lender at your first meeting is not entirely unlike trying to impress a girl or guy on a first date. You're both getting together to see what you have in common, how your ideals and values line up (or don't) and wondering if something good will spark.
Over the years, in dating girls and "dating" private lenders, I've had some unsuccessful appointments and some very successful ones…
When it comes to the private money side of things, allow me to share with you some of the simple but effective things I've learned that can greatly improve your chances of hitting a home run and scoring a second date.
1. Attitude is Everything
There's nothing sexier than confidence, and there's no substitute for a good, positive attitude. I love Henry Ford’s quote, “If you think you can do a thing or think you can’t do a thing, you’re right.”
Think about it: When you're around someone who just exudes inner strenght and confidence, don't you find yourself drawn to that person? And I'm talking male or female. There's just something magically alluring about a person who believes in themselves. And I'm not talking about cockiness or arrogance. I mean a genuine self-confidence.
Some folks have this naturally while others have to work to develop it. But it's impact is unmistakable, and one of the best things you can do for yourself is learn how to develop a sense of surity and a positive attitude.
Not sure of yourself yet? Lacking in confidence? Well practice makes perfect. The more private money "dates" you have, the more your confidence and positive attitude will continue to grow.
In the meantime, try borrowing confidence from others. Bring in a more experienced partner who's attitude you can lean on. Or even leverage your mentors' confidence and belief.
If you think you can get private money for your deals, you’ll get it!
2. Location
Office - If you have an office, that’s probably the most appropriate place to present. But if not, no big deal. You could also use the conference room in one of your team member’s offices – your title company, attorney, accountant, etc.
Restaurants – I’m not a big fan of doing presentations over lunch or dinner. I think it detracts from the purpose of the meeting. However, other investors have been very successful presenting over a meal… just try it out and see if it works great for you… if it does keep doing it!
Coffee Shops - Great place to do presentations. I've done countless presentations at Starbucks. A coffee shop is a neutral place, so the private lender prospect doesn't feel threatened that they’re on your turf (in your office). And if you meet at a coffee shop… offer to buy your prospect a drink or snack.
Prospect’s Home - The prospect’s home is another good alternative. This could make it easier on your prospect, which may help to get the appointment.
3. Dress the Part
Clean cut, well groomed, and professionally dressed is best. This may or may not mean wearing a tie or dress, and I definitely don’t think a suit is necessary personally. But if that’s what you feel comfortable wearing, go for it..
It just kind of depends really. But as a rule of thumb, I always let my prospect set the bar, and seek to dress at or above the level at which they will be dressed.
4. Be On Time for God’s Sake!
And by "on time" I mean at least 10 minutes early. You want to have a few minutes once you get to the meeting location to breathe deep and gather your thoughts. Even if you're spot on time, if you seem rushed, then it doesn't make for a great first impression, does it?
And hopefully it goes without saying, but I'll say it anyway. Being late is never something you want private money prospects to associate with you. In fact it's probably among the last things you'd want them thinking especially at this stage in the relationship - it fits nicely right alongside being "irresponsible with money".
5. Are All Decision Makers Present?
You do NOT want to give your presentation unless all decision makers are there.
Typically when someone is married, this means both spouses. Or if your prospect has a business partner, then it means having them there too.
If you get to the meeting and one of the people couldn't make it, reschedule it. You’ll jeopardize signing them up as a private money lender otherwise... because second hand information doesn't cut it, and the second person will almost always find a way of talking them out of it somehow. Ask me how I know that!
6. Be Respectful of Their Time
The best way to be respectful of someone’s time is to ask, “Are you on any certain time schedule today that I should be aware of?”
Your prospect may have to pick up kids from school or be at another meeting across town in half an hour. Either make sure you budget your time to easily fit everything in based on this, or if your prospect has another commitment that doesn't give you sufficient time for the appointment, it’s best to just reschedule.
And of course, being on time (10 minutes early) is also being respectful for their time.
7. Don’t Answer Questions You’re Not 100% On
You don’t need to worry about coming across as an expert know-it-all when you’re getting started with private money. Confidence is not the same thing has always having all the answers.
If someone asks you a question that you’re unsure about, simply say . . .
“That's a really great question. You know what… I want to make sure that I’m 100% right before I answer that. I’ll make a note of it and get back to you soon.”
Alrighty, so those are my 7 "first impression makers". Please make sure you adhere to them every time you "go out" with a potential private money lender, and you'll stand a much higher chance of scoring (some deal funding! :-)
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Struggling with attitude or confidence? Read Learned Optimism and Ultimate Secrets of Total Self-Confidence
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Choose two possible meeting spots. Go ahead and choose two possible locations to try and hold all private lender appointments. Like a local Starbucks (Plan A) and your real estate agent's small office conference room (Plan B). Have options ahead of time, before you even try to set up a "date".
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Practice being 10 minute early. To everything. This may or may not fit your personal style, but do it anyway. There's absolutely no downside, and it will only help you develop a habit that will serve you immensely well - with private lenders and with anyone else!
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.