(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.)
From Patrick Riddle, Deal Funding Adviser...
In my first year in the REI biz, I used a lot of financing strategies – conventional, hard money, partners – that didn't work very well based on my needs and goals.
So at the age of 23 (even though I looked like I was 17), I decided to get private money to fund my deals. I didn't know how I was gonna do it but was bound and determined to make it happen.
I made a lot of mistakes but over time, tweaked my approach, techniques, strategies and started easily getting private money.
7 Minute Funding
One day my partner got a new contract on a property and it took me like 7 minutes to get it funded.
Seriously.
I typed up a quick email to one of my hot-and-ready lenders, Brent M. of Mount Pleasant, and BOOM! Deal funded.
How the heck did I do this?
I attribute it to one major thing: I learned how to position myself in the authority role… how to be perceived as an expert, as credible and trustworthy. And you can too (even if you’re a newbie).
Diagnosis? Funding.
One way to do this is to “diagnose” your private money prospects…. Just like a doctor diagnoses his or her patients.
You don’t just walk in a doctor’s office, start telling ‘em about your ailments and get interrupted to hear, “You know, I've got this blue pill that I’m pushing this month. I get really good commissions on it and even though I’m not sure if it’s right for you… here’s your prescription.”
No, no, no! That’s not what happens at all.
But guess what? That’s exactly how most investors try to sell their private lending opportunities… which is…
Reason #17 why most investors fail at getting private money: they don’t diagnose their prospects.
Average investors don't have the wherewithal or take the time to actually find out FIRST if their prospects would be a good fit for private lending, or if they even have the funds required for deals, or if their expectations of returns or time frame are out of whack with what they offer.
You’re no average investor though!
So if you haven’t already been, it’s time to start diagnosing your prospects BEFORE you tell them details about your investment opportunities. Your job is not to sell them on your deals, so much as see what they really want or need, and whe
ther or not you can provide them with allowing them to be your funding partner on some deals.
One Easy Way
One way you can do this is simply as an integrated part of your presentation.
In my private lending PowerPoint presentation (Mogul Elite members – see Power Pack Tools for this lesson) IU have some “Investor Evaluation” slides. Just the title of the slides themselves adds to your authority because you’re the one doing the “evaluating.”
The questions on those slides like “What experience do you have investing?” easily kick off the diagnosing process… so that ultimately, you’ll know how to prescribe the right investment opportunity to the right person.
This is HUGE! Do this well and your relationship will feel less like salesman-to-possible customer and more like colleague-to-colleague or even adviser-to-investor.
In typical situations, the buyer has all the power… but by diagnosing your prospects and putting yourself in the authority position, everything changes. The roles reverse. And you regain the power and the position of authority. Not in a domineering way of course, but as a natural leader and guide in the disucssion.
That’s when getting private money becomes easy.
If you’d like to see how I do it in my Power Point presentation, I’ll attach it for Mogul Elite members.
Now go get some you some private money!
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.