New Note

Create a note for yourself from this lesson. Notes allow you to quickly jot down any valuable information you'd like to review later. You can find your notes by clicking on "My Notes" in the profile navigation menu.


When a Private Lender Says 'No'...

Want V.I.P. access to a $6,000,000 line of credit for real estate investing? Click here now →

(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.)

NOHey guys, it’s Patrick Riddle here...

You are about to discover why private lenders might say no to you and what you can do about it.

Let’s say you're meeting with a private money prospect and you find out they're currently earning about 3% on their investments. During this meeting, you offer them a 6% return. That’s double what they're currently earning. Sounds irresistible, right?

Wrong. The private lender prospect says no. Why is that? Seems incredulous doesn’t it?

Why would someone say no if they're currently getting 3% and you offer them 6%?

It all comes down to one reason and one reason only: They simply don't believe that you're going to do what you say you're going to do. That's it.

The Trust Issue

It's a credibility issue – and a trust issue.

Face it, if they trusted you 100% that you really would pay a 6% return, they would say yes. That is, if they trusted you 100%. But obviously, since the answer is no, that trust is missing.

So, how can you build the trust and credibility, so their answer will be yes? And can you possibly do that even if you've never done a deal?

Yes and here's how...

Here's one of the ways that you're going to build massive trust through credibility. What you're going to do is borrow credibility from your team and your mentors.

Leverage Credibility

You're going to leverage the credibility and experience of those you work with. Remember this - real estate investing is a team sport.

For instance, on our real estate investing team I have:

  • A closing attorney
  • Contractors
  • Real estate agents
  • Mortgage brokers
  • Insurance agents
  • And more…

teamworkSo, for example, you have a team and you’re going to leverage their experience of how long they've been in business… notable clients they work with… how many transactions they've done and so on. You’re borrowing that credibility from your team. Also, in addition to your team members, you want to borrow credibility from your mentors.

For instance, my students can say to their prospect:

"My mentor has been doing this for many years and there are investors all over the country who borrow from private individuals just like you to fund their deals."

Where to Plug in the Information

Now let’s go over a few different places where you can plug in this information in your different tools that you use to get private money.

PowerPoint Presentation

You can use it in your private lender PowerPoint presentation. That's the primary tool that we use to get private money. That's where you sit down with the prospect and take them through the formal ‘sales’ process.

You will simply plug in your team's experience into your private lender PowerPoint presentation. You may have a slide that introduces your title company or your closing attorney. Maybe you have a picture of the person you work with, or maybe you have a picture of their office and a few bullet points about them that you feel would build your case as a successful real estate investor.

In my private lending PowerPoint presentation, I even have some slides titled “Investor Evaluation.” Just the title of the slides themselves adds to your authority because you’re the one doing the “evaluating.”
{Mogul Elite – Download a template of my Private Money PowerPoint Presentation in the Power Pack Tools for this lesson.}

Your Website

hulkAnother place to plug it in is your website. You can create a page on your website that tells all about your team. Again, you're plugging in the different members of your team and their experience and bullet points that will help build that case.

Because they are credible, you are now credible. Because they are trusted by the community, you will be trusted by the community.

Your Autoresponder

Another place that you could plug in information about your team is your autoresponder. When someone goes to your website and downloads the free report on private lending, they're placed in your autoresponder series.

On a regular basis, they’ll receive emails from you. Within the emails, you could put different information about your team members. Or you could point them back to your website to the page where you have your team presented.

Your Newsletter

Another place that you can plug in information about your team is in a newsletter. Maybe you do a monthly or quarterly e-newsletter… very easy to do and simply plug in information.

Maybe you highlight one team member with each issue. So every month, info about the various team members you work with is presented. That's huge.

A Collaborative Effort

The potential private lender is going to see that it's not just you doing this – they're going to see that it's a collaborative effort… that you're pulling in expertise from all over the place to comprise your investing company.

This will build big-time credibility and trust, even if you've never done a deal.

So now, the only thing left for you to do is to take this information and put it into use in your business. Get going!

Questions, Comments?

Do you have any questions or comments about private money? Hit me up down below.

Do It To It! Immediate Action Steps

Understand why a potential lender might initially say no to double returns on their investment.

Leverage the credible information about your team members for your own credibility.

Plug this information into your various tools such as your website, emails and newsletters.

Replicate this strategy by using the credibility points of your mentor.

Is there a topic you'd like to learn more about? Request a Lesson


+ Mark as Learned

Valuable Lesson? Share it:


Request a Lesson

At RealEstateMogul.com, mogul_guarantee.pngwe’re committed to delivering the awesomest, most practical, actionable content to our members … and that a big part of that is getting YOU to tell us what you'd like to learn from us. Since our REI resources are basically endless, we’d love to tailor our upcoming training as much as possible to precisely match what you, our members, really need and want out of us.

jpsig.png Request form