Hey guys, Patrick Riddle here…
A while back I presented a terrific lesson on why most investors flounder when it comes to getting private money. In that lesson, I gave a proven 3-step process for getting all the private money you will ever need for your deals.
Each step was presented in detail. We discussed the formula, which basically is this:
Private Money = Relationships
The response to that video was amazing. It's been shared a several hundred times now and has garnered a lot of positive comments. (BTW – Check out my other super-helpful lessons right here. Help yourself!)
The three steps were as follows:
Step 1: Big Picture and Pain (You start out by sharing the big picture with your prospect.)
Step 2: Formal Appointment (Time to sit down and go over the Power Point presentation.)
Step 3: Follow Up with the Right Deals (Select the deal that best matches that person’s goals and needs.)
No matter how well this 3-step plan works, for many people – what stands in the way of successfully implementing those steps is fear.
That’s the reason why in today’s lesson I want to talk about the 3 biggest fears that most people fall victim to. And not just what those fears are, but also how they can be conquered. (After all, that’s what we all want to know!)
Facing Fears
I love the quote from Mark Twain that says:
"Do the thing you fear most and the death of fear is certain."
In other words, taking steps of action can conquer fear. But how can you get yourself to take that action if fear holds you prisoner?
We’ll talk about that in this lesson where I give you specific tips and tricks to help you conquer your fears once and for all.
Fear #1 – I Don’t Know Enough
This may be the one fear keeping you from progress. If you don’t think you know enough, then you can’t move forward.
Stop and think about this... Why do you think that you personally have to be the expert on everything that has to do with real estate and investment?
The answer is – you don’t. It’s good to be knowledgeable, yes, but you don’t have to be the expert.
One key to overcoming this fear is to leverage by your associations. You can leverage the experiences of your real estate investing power team as your own to build massive credibility. And basically that’s what this is about – being credible enough for someone to trust you enough to lend you those funds.
You’re afraid to set up a formal appointment and take them through your Power Point presentation, because you are afraid they might ask a question that you can’t answer.
Here’s what to do.
You’re in the presentation, you get a question, you’re caught off guard, and you don’t know the answer…
First of all don’t try to guess and bluff your way through. Simply say, “I want to make sure that I’m a 100% correct on this, so I’m going to make a note of this question and then I’ll talk to… (Fill in the blank here) …to find out for sure.”
Depending on what the question is, you then leverage your team. You may need to ask your attorney, accountant, realtor, mortgage broker, or whomever...
Once you get the answer, contact the prospect and give them that answer – and your credibility has just gone through the roof. Well done. That prospect will be impressed with your attention to detail and follow-up.
When you surround yourself with a team of experts, you have no need to know everything. One quick phone call or email gets you the answer. When you take that step, you will come across as credible and reliable.
Fear #2 – Fear of Rejection
This is one I closely relate to...
When I was getting started in private money, I got a long string of no answers, to the point where I was getting discouraged and frustrated. I came very close to quitting. Then I heard a teaching by one of my mentors, Jim Rooney. He helped me see the light so I could keep moving forward, and eventually I ended up getting millions of dollars in private money.
Jim taught about ratios. When you do something often enough, he said, a ratio will appear. It’s called the law of averages. It may not sound like an earth-shattering concept, but stay with me…
Let’s take baseball – they call it the batting average. You step up to the plate nine times, and you miss, but then on the 10th time you get a hit. Guess what? As soon as you get that hit, the law of averages kicks in and a ratio has started.
Here’s why that’s huge – once a ratio starts, it tends to continue. You step up to bat 10 more times and strike out 9 times – that 10th try you get another hit.
So, keep swinging…
When getting private money, you may do 9 private money appointments and get turned down 9 times. Then on that 10th appointment, you pass a deal by them and boom! – there’s your first private lender. Then you can expect to do another 10 appointments, and guess what? Get another private lender. With repetition, your ratio can be increased.
Let’s think about it this…
In major-league baseball, hit 3 out of 10 and you make millions of dollars. In other words, strike out 7 times and still get paid millions.
To relate that scenario to real estate investing – the big problem is most people won’t even step up to the plate. They won’t even take a swing. The few who do take a swing, if they get one strike they’re ready to quit. Boo on that.
So, my challenge to you is to make a personal commitment to keep on swinging – no matter what…
Because the law of averages is your friend.
Rejection is okay because you know that once you have that ratio, if it’s 1 out of 10. All you have to do is set up another 10 appointments, your ratio comes into play, and you get another private lender.
Fear #3 – Fear of the Unknown
Fear of the unknown rears its ugly head because most people associate the unknown with risk, and then they imagine the worst-case scenario.
Let’s look at the evening news as a great example... They flood your mind with the worst-case scenario of every situation. It’s easy then to think about those things and fear the unknown.
Fear of the unknown can manifest in your mind any time you attempt to step out of your comfort zone. When that happens, you start to get panicky feelings of anxiety and worry. Yuck!
Learning and growing are positive things, but instead, our typical reaction is to read those feelings as: “Stop. No. Unsafe. Don’t venture out. Don’t go there.”
So, the trick is to reframe those thoughts…
When you step outside your comfort zone, begin to tell yourself that you’re learning, growing and moving toward your goals. Anytime you get that uncomfortable feeling, let it be a sign that says: “This is awesome. I’m moving toward my goals. I’m learning. I’m growing. I’m moving forward.”
One of the best ways to force yourself to take the actions that you need to take is to have an accountability system.
And, for any accountability system to work, you have to first be accountable to your own results. If in the past you have been tempted to complain, blame others or blame circumstances, then it’s time to make a few adjustments.
Be accountable to your own results. They’re yours, so own them. Once you take that power back and take that responsibility, then and only then can you set up an accountability system to do the things that will move you toward your goals. Choose to take 100% responsibility for your results. Once you’re willing to take responsibility. it’s time to find an accountability partner.
If you have a business partner that person might work as your accountability partner. If not, consider finding another real estate investor who is at the same level where you’re at in your investing business. Then agree to be each other’s accountability partner.
Where else might you find this person? It may be at the Real Estate Investment Association meetings in your area, or at local auctions and tax sales. Get to know people. Soon you will find someone and you two will then be each other’s accountability partner.
Set a specific day and time each week to meet. At the meeting you will go over what you plan to accomplish in the coming week. At the next meeting you will have a chance to review what has been accomplished. (And what has not…) Together you help one another move forward. When you’re talking to that person and they’re getting their goals accomplished, you will then want to get yours done as well.
Having an accountability partner in place will help you move outside your comfort zone, crush the fear of the unknown, continue to move forward and make big things happen.
Brining it Home
People are born with two basic fears: fear of loud noises and fear of falling.
This means that all other fears in your life are learned fears. This is good news. Because if they can be learned in the first place, that means they can also be unlearned!
So get busy and start training yourself to unlearn the fears that are holding you back from the success you so rightly deserve.
Give Us a Shout
Do you have tips for conquering fears? Share them with us in the comments bection below.
1. Stop running away from, or denying, your fears.
2. Face your fears and blow right by them.
3. Unlearn all of your learned fears.
4. Take responsibility for where you are right now. Stop blaming.
5. Step up to the plate and start swinging. No matter how many misses – keep on swinging. The hits will come.