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Funding

The Art of Speaking with Lenders

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answer meThe art of conversation is truly a “practice makes perfect” kind of thing. Even the most skilled conversationalists and the most confident of speakers can stumble every now and then. And let’s face it – talking with lenders and asking for money isn’t always the most comfortable of conversations.

Everyone can use a little help. And that’s what today’s lesson is all about – developing conversation skills and learning what to say and how to say it (specifically) to lenders… just like I do it - the Steve Cook way.

Open Mouth, Insert Foot

I know far too many investors who have destroyed potential relationships with vendors simply because they didn’t invest the time to improve their conversation strategies with lenders. Some say too much. Some don’t say enough. Others simply say the wrong thing at the wrong time and, ultimately, end up driving lenders away.

You know that bad credit isn’t going to look great in the eyes of your lender. Duh. That’s not news to anyone. But if you know how to spin the conversation with the lender, you might just get what you want.

Understand first and foremost that it’s on YOU to figure out what YOU bring to the relationship with your lender. Convince him or her why they should work with you. You have to sell yourself, and be honest about your financial status. Lenders deal with ‘BS’ day in and out, so save the Slick Rick smooth talk.

A Little Background on the Bank

Before you deal with any bank, know that banks actually want to lend you money. That’s how they make money, right? They prefer that you put money down, because that makes for a “safer” loan, and banks don’t like change. It’s kind of their way or the highway.

If you know these things going in, you’ll be ahead of the game.

Get ‘Em to Open Up & Say “Ahhhh”

Let’s rewind for a second back to the bad credit scenario – or lack thereof. Maybe your credit is fine, but you want to get your buyers into their homes with 100% financing. What do you do?

speakRecognize first that you’ve just hit the bank below the belt (ouch) not once, but twice. Putting the request for help with 100% financing just scared the pants of your lender. Kidding… maybe. Exposing that information up front is like shoving Saltines in a baby’s mouth! They’ll choke!

There’s a technique called spoon-feeding. You’ve got to ask for what you need slowly, strategically and only after you’ve established some sort of rapport with your lender. Let your lender swish some basic information around first and swallow it. Baby steps, my friends, baby steps.

Speaking of rapport, a great way to get the warm and fuzzies going is to share a story, your story, about how you want to help people buy homes with no or little money down. Then put the focus back on them. This is called “strategery,” my friends. Yes, I know it’s not a word, but once you know the rules, you can break them. Ask the bank if they’ve participated in any creative financing to help get deals like this done.

Then… shut up.

Sit back and let them talk.

If you discover that the bank is well-versed in transactions like the one you need, express serious interest and ask for more information. Show enthusiasm! After all, nothing feels more gratifying than helping others, right?

Notice that you’re spinning the conversation in a way… leading it in a direction that influences the bank to provide YOU a solution.

Explore the Exploratory Conversation

I call this the Exploratory Conversation because the conversation should feel like a give and take and an exchange of ideas to help you reach your solution.

Remember, this isn’t about manipulation. Always, always communicate honestly and genuinely.

I’m suggesting you be relational and relatable, much how you would engage in conversations with your spouse or your best friend. The conversation should flow naturally. You just need to spin it in a way that results with you and your lender working together. 

 

Do It To It! Immediate Action Steps

Understand how the bank operates before you walk in the door.

Practice the art of conversation and continuously take time to hone those skills.

Deploy exploratory conversations much like you talk with friends.  

Spin your conversations so that the bank provides you a solution.
 

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