Do you know how important the questions you ask private lending prospects are?
And look, it’s not just about asking smart questions… it’s about asking the right questions.
Why?
Because if you ask the right questions when talking with a private lender prospect, you will reveal their pain.
I know, sounds rough. Maybe even mean. But neither is true… hear me out.
When I say we want to know their pain, what I’m really saying is this – perhaps they’ve invested before and it didn’t go well…
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Did they get burned on another REI deal maybe by unsecured property?
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Are their stock market returns crappy?
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Do they have money in a conventional bank that’s only growing at a wimpy 3% rate?
See, when you ask the right question, you’ll find out their needs.
Don’t get me wrong, what they want is helpful too… but your focus should be on what they need.
“Often the thing that brings you the most pain is the very thing that will lead you to the most gain and your breakthrough.”
~Jeanette Coron
The Good, Bad and Ugly
By asking the right questions, you’ll be able to learn all the nitty gritty details about their investing history – yep, you guessed it – the good, the bad and the ugly.
So, what are the right questions to ask?
Here ya go…
The right questions are about their goals… so you can present them with just the right opportunity that not only meets their goals, but also solves their pain and problems.
See, by asking the right questions, you know what causes their pain, and you can then frame your private funding partner program as the perfect solution to help end their pain.
When you ask the right questions that give you helpful answers, you’ll be putting yourself in a better position to get a ‘Yes.’
“The pain you feel today is the strength you feel tomorrow.”
Check this out…
Let me tell you about a real-life situation involving a student of mine about this very topic…
So my student met with a private money prospect – and this guy had an inheritance. That’s the good news. The bad news – nope, scratch that – the other good news is that he’d already lost a chunk of it because his investment fund was poorly managed… to the tune of $18,000 gone.
Can you say pain?
See what’s good here is that my student was easily able to find out this painful, yet helpful info about the potential private lender. And obviously this guy was now motivated to look for a good investment opportunity because, well, seeing $18k disappear just plain sucks.
Because the student knew what was causing the pain, he was in a great position to help out Mr. Inheritance Private Lender.
So know that the people who are experiencing some kind of pain are the ones you want to reach out.
Like this lesson’s title says, no pain, no gain.
“Leaders are interested in gains. However, they acknowledge that there is no gain without pain. They embrace the pain.”
~Israelmore Ayivor
How Do You Find Their Pain?
What are the right questions that you ask? Share in the comments section below.
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.