The 4 Essential Traits Of A Credible Rea...

hulk1 Are you worried about pulling off credibility when it comes to getting private money?

What if I told you that you can fake credibility?

How?

Well, you just have to have the balls (I mean that figuratively –It goes for all you women, too) to “fake it until you make it”, so to speak.

Need more specifics? I thought so. That’s why today we are starting a series on how to have ironclad credibility, starting with The 4 Essential Traits of a Credible Real Estate Investor.

But first, let’s talk refresh ourselves on what credibility is and why it’s so important to a real estate investor…

Credibility Matters. Period.

Question:

So what is credibility again?

Answer:

Credibility means “worthy of belief and trust.”

Question:

Okay, so does credibility really matter in the REI world?

Answer:

You better believe that private money lenders need to think you are “worthy of belief and trust” to fork out a bunch of their money to you. Without credibility, nothing else matters. Period.

The Ugly Truth: You’re Not Attractive

Let’s say you meet with a lending prospect. Typically, the lender receives a 3% return on their investment, but you offer them 6% because you really want to make the deal. They say “No” and turn you down…

Question:

Why???

Answer:

Because you did not come across as credible and that’s not attractive to a lender. They aren’t going to take a risk on someone who doesn’t appear credible.

How to Have the N.A.C.K for Massive Credibility

Now, let’s get down to the nitty-gritty. There are 4 essential traits that create the persona of massive credibility. I have a clever N.A.C.K. (acronym) that will easily help you learn and remember these traits:

Networking – Action – Confidence – Knowledge

Trait #1 Networking (Be in with the Cool Kids)

So, the first trait you need to develop is networking. Networking is essential because it provides connections that will grow your business through:

Connections. Knowing people in the industry creates channels that lead to possible business partners, mentors, upcoming events and even private money lenders. Some examples are:
- Meetup.com
- Local REIA groups
- Motivational seminars
- Auctions
- Any business or organization that shares the same common interest or goals.
Reputation. Get in with the cool kids. When people know you, they talk about you, invite you to events, and recommend you to others. Even if your name is not famous in the investing world, if common acquaintances can vouch for you than you have created credibility.
Knowledge. Gaining knowledge should be a constant focus for investors. Networking through social media and attending social events keeps you up to date on the trends, what’s working for other investors, tricks of the trade, and the latest news and changes in the industry.

Trait #2 Action (Because it Speaks Louder than Words)

The second trait you need to build is action.

I once asked an extremely successful broker,

“What does an investor have to do to be in your top 5?”

He looked at me sternly and said,

“Close.”

That has always stuck in my mind because the phrase “actions speak louder than words” is so true, especially when it comes to being credible in the real estate industry. So take action and don’t be a stagnant loser, by:

Doing business (making bids, closing deals, attending events and auctions, etc.).If you aren’t doing business how will you ever be noticed or gain experience (AKA credibility)?

Making decisions and taking risks. If you don’t, no one will want to partner with you.

Reaching out to others and making connections. As we discussed earlier, that are so important.

Lead Generation. Do business by getting the business to come to you.

Trait #3 Confidence (Delivered with Conviction and Clarity)

The third trait you need to “fake until you make it” is confidence. When you meet with private lenders, it is all about having a plan and delivering it with conviction and clear communication.

It doesn’t have to be a formal business plan, but you gotta know things like:

What kind of properties do you buy?

What is the criteria for your investments?

What is your niche?

What are your acquisition and exit strategies?

What terms are you offering private lenders?

Does this type of private money require you to adhere to set criteria?

Be able to answer these questions under rapid fire so you don’t come off as “winging it.” If you can’t, your confidence will be shattered and you will lose the deal.