(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.)
Howdy, Moguls, Patrick Riddle here. A while back, one of our esteemed experts wrote a great lesson about the best hook to use to get private money lenders to secure you in a deal. Well today, I am going to give you my personal version of this same concept. (Oh, and please check out some of my awesome previous lessons, they’ve got great info too.)
We’re going to discuss a short (but powerful) script you can use to literally attract private lenders to you in the normal course of your day-to-day hobnobbing and meeting people.
Get Them to Come to You
A few years ago, I had a big mental shift occur in how I thought about trying to get private money. For a while I’d been trying to ask all the right people, and I enjoyed a little success, but it was always hard and somewhat awkward to do the “ask” part.
But after my “a-ha” moment, instead of trying to “sell” people on lending me their money, I say and do things in certain ways to make them want to ask me about lending me their money. Now I’m going to share my strategy with you guys because it’s a heck of a lot easier, and it’s gotten me some fantastic deals.
Truth be told, it’s pretty darn simple when you know how to do it – and do it correctly. What I’m sharing with you today is something I often refer to this as the “Half-Minute Private Money Hook” and you’ll find that it’s:
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Simple, straightforward and easy to remember
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Very specific and intentional in how it “baits” and “hooks” your prospects to want to know more
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Subtle and effective
But rather than just handing you the script and sending you on your happy way, we’d be remiss if we didn't take a moment to dissect it a little for you. To really get the most value out of this, you should understand not only the “science” behind it, but also the “art” – and both are key.
The Basic Structure of the Half-Minute Private Money Hook
So here’s how it’s done…
Step #1: Tell them what you do. When you explain how your investing strategy works, do it in a way even a 2nd grader would understand.
For example, here’s a great 30-second spiel:
“We buy, lease, and sell real estate. And use cash from investors to do so.”
Step #2: Trigger pain points by saying something such as,
“Typically, we work with people who …”
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are tired of the volatility of the stock market.
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are frustrated with the meager returns in their CDs, mutual funds and IRAs .
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are done with the instability of their current investments and ready for something new and secure.
Get them to self-identify with what you are saying, and peek their curiosity by stating the pain you think they are experiencing.
Step #3: Say a one liner about what it is you offer, along the lines of:
“We provide safe, secure opportunities in real estate for everyday people by getting their money to work hard for them instead of the other way around.”
Step #4: Ask a “yes” question
End with a question that they will answer with a “yes.” My favorite is:
Does that make sense?”
Let’s do a little impromptu to make it a little clearer…
The Hook in Action
Here’s the scenario: You are networking at an REI club meeting and have just met a potential investor…
Me: Hi, my name is Patrick, nice to meet you, Bob.
Potential Investor: What is it you do, Patrick?
Me: We buy, lease, and sell real estate. And use cash from investors to do so (step 1).
Typically, we work with people who are frustrated with the meager returns in their CDs and mutual funds and IRAs (step 2).
We provide safe, secure opportunities in real estate for everyday people by getting their money to work hard for them instead of the other way around (step 3).
Does that make sense (step 4)?
Potential Investor: Yes, it does. Tell me more about… (If they don’t ask for more information here, that’s okay. Many times they come back later).
Tip: Say “we” instead of “I” because you always want to use the higher-authority angle. This conveys that you are not the decision maker (or sole decision maker).
And Always Remember…
In day-to-day life it’s important to always have your radar on for potential-investing prospects. Deals can happen anywhere – from networking to a 30-second elevator ride.
It’s not about spearing those fish in the sea, it’s about keeping that hook out there with the right bait. Make what you put on that hook intentional, and then reel them in.
Now it’s time for you to leverage what we've just handed you, and go craft your own awesome version of it.
Whatcha Think?
Any comments or questions? Just leave them below. We’re (see what I just did there, using the ‘we’ instead of ‘I’) here to help!
Memorize the basic structure of the half-minute private money hook.
Craft the half-minute hook in a way that is natural and benefits you.
Bait your hook for the type of investor you want to catch.
Keep fishing constantly and be ready to reel them in at any time.
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.