Hi, guys. It’s me again… your most awesome Mogul faculty advisor, Patrick Riddle. I know the suspense is getting to you, so today I’m going to share with you the second wave of hacks in this super-cool series.
First, let’s figure out how the heck we got here…
Okay, we introduced The 4 Essential Traits of a Credible Real Estate Investor and then we went over The Iron Law of Credibility. Both are great lessons that you should definitely check out. Then we moved on to the first set of hacks in 21 Credibility Hacks Every Real Estate Investor Should Use (Volume 1), which brings us to where we are now.
Remember, these are hacks you should be using when you meet with private money lenders. I’ll be very clear – they can make or break your credibility, which means they are very powerful tools you need in your REI toolbox.
Now let’s dive right back in…
Hack #7: The Fat Lady Always Sings Last for a Reason
Make sure you focus on small agreements that will lead you to the ultimate agreement.
For instance, with a seller, a big agreement would be getting them to take the purchase price and contract, whereas a small agreement would be to get them to meet you at the property.
Here’s another one…
A small agreement could be to get a seller to find out some information about the property they don’t know, while a big agreement would be getting them to come way down on the negotiation price.
See what I mean?
With a private-money scenario, a small agreement could be getting them to meet and watch your power point presentation verses asking them for a monster loan (aka big agreement).
Get them to participate in a smaller loan that will eventually lead to bigger loans as you prove yourself. Give them a solid experience and great returns and they will keep doing business with you.
Hack #8: Sprinkle Salt in your Dialogue and Season to Taste
This hack definitely took me a bit longer to believe in because it seems so counter-intuitive, but trust me, it definitely works.
You need to disqualify your prospects through the language you use.
It’s simply part of our nature as humans to want what we can’t have. So the more you use disqualifying language, the more you will come across as credible. When something is available to everyone, then naturally people don’t associate it with holding much value. But when something is more difficult to attain, has limited availability or certain qualifications must be met in order to get it, then peoples’ interest in that thing shoots through the roof.
Check out these examples of disqualifying language and it’ll probably all start to click for ya…
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I’m not sure yet if your house will qualify for us to purchase, however we can run through a few questions to find out …
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Not all private money lending prospects are right for us to do business with, and we may not be a match for you…
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I only date blondes, but we can give it a try and see if things start to mesh…
Okay, that last one was just for fun, but you get the idea, right?
These statements immediately put that other person in default mode and they think, “Who’s he to tell me this situation is not right for me? Why couldn’t I be right for this opportunity?”
So how is this tactic like salt, you ask? Everyone loves a good, salty snack…it’s almost addicting and sometimes you might even crave it. But, if you add too much salt, it’s yucky and ruined.
The same applies here. When you are “disqualifying your prospect”, don’t go too far and come across as uppity.
Hack #9: No one Wants to Court the Needy (So Don’t be Needy)
Think of it this way…
In the dating world, no one is drawn to the person who’s needy and on the prowl for someone to connect with (unless you just want to hook-up, but that’s a whole different story).
You want someone who has standards. You’re more likely to be willing to explore a relationship with someone who fits into those standards.
It’s the same in business. You have an ideal match and not everybody is going to be compatible. And remember, one party is always more motivated than the other, but you want to be the one that’s perceived as having the reluctant role (no matter how bad you need the deal or the money). And you can, if you use disqualifying language (Hack #8).
Hack #10: Birds of a Feather Flock Together
This one is short and sweet. It’s all about appearance and how you present yourself…
People DO judge books by their cover – it’s simply human nature. So as my grandmother used to say…make sure you clean-up nice. Remember, you can’t get back that first impression.
Like is attracted to like. Your attire and appearance should, at the very least, match the social status of the person you are meeting. What I’m saying is…
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If you are meeting a seller that you’re pretty sure will dress casually, then dress casually or better.
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If you are meeting someone like me, who’s addicted to flip-flops, then wear flip-flops.
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If you are meeting a businessman who will probably wear a suit, then wear a suit (a tuxedo, however, might be overdoing it a bit).
To be Continued
Okay, so that wraps up another lesson in this awesome series. I know, I know, it’s another cliffhanger, but like most good things, the rest of these helpful hacks will be worth the wait! Stay tuned for the finale in this series, coming soon.
What do you Think?
Do you have a helpful hack to build credibility? Or maybe you’re used one of these tips and paid off… we wanna hear about it. Share some thoughts in the comments section below.
Focus on small agreements that will lead to bigger agreements.
Disqualify your prospect through the language you use.
Maintain composure and don’t come off as “needy.”
Match the ideal social status of your prospect.
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.