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Dating Private Lenders: 7 Smooth Sayings for Following-Up with Private Money Prospects

Patrick Riddle | Funding
" Hey, gang. Here’s another good lesson from our private money madman, Patrick Riddle.  Patrick is a machine in the private money arena, and in addition to cranking-out the deals, he also creates lots of good content for us here at Mogul. Check-out our archive of Patrick’s previous lessons about Funding strategies and Inner Game mindsets, then read on to learn about his 7 “smooth sayings” for following-up with private money prospects. 7 Smooth Sayings for Following-Up with Private Money Prospects Alright, so you've used my previous lesson to explain my PowerPoint presentation to your private money prospect. Now what? It’s time to follow up... Many of your private lenders will require consistent follow-up to get them to fund a deal. So it’s important that you position your opportunities in such a way that you’re continually building massive rapport, interest and desire. To help you do this, here are 7 “power phrases” I use that will make your prospects more motivated to say “YES” to your next deal. 1. "Did I catch you at a bad time?" First off, asking this question from the get-go is just a common courtesy that far too many of us have forgotten. You never know if you're interrupting something important, or if you're diving right into your private money chit-chat while they're in the middle of dealing with something else entirely.  So it would be really great to just get in the habit of asking this at the start of any conversation before you dive right in. If you happen to catch your private lender prospect at a bad time, you certainly want to know it, right? Because they'll likely not be paying attention to what you’re saying. You need their attention to be intently focused on you. You need mental buy-in to even having the conversation with you. So when you realize it’s not a good time to talk, simply ask them what would be a better time for you to call them back. Don’t let them tell you that they’ll get back to you. You want to remain in control, so keep your hands on the steering wheel of the follow-up conversation. 2. "I thought of you when this opportunity came up and called you first…" People naturally have an innate urge to want to feel appreciated and important. It's actually one of the top things that people want most out of life across the board, whether they fully realize it or not. So how can you make them feel appreciate and important? How can you make them feel special?  By saying, “Hey, I thought of you,” and “called you first,” to your prospects. Of course, they have to believe it. Meaning you want to come off as sincere, and not like a slick used car salesman who slyly "thought of you" just when he saw his latest junker hit the lot. So be subtle and sincere in making them feel genuinely special. 3. "This probably isn't right for you but…" This subtle Jedi mind trick puts you squarely in the unmotivated (aka reluctant) role – Which is exactly where you always want to be. The deal is, with these 7 little words, you’re politely disqualifying the person from what you’re offering. And human nature is that we almost always hate to see ourselves as somehow unqualified for your opportunity. This also takes you out of the salesman role in their minds. When most people think of a salesman, they think of someone shoving nothing but positive features and benefits down their throat, and always pushing towards a sale. Dropping a quick "This probably isn't right for you . . .” in a casual, friendly, non-condescending way – well it flat-out turns this on its ear. It disarms their innate defenses against you as a "salesman" and actually makes them more interested in seeing if they can, in fact, prove themselves worthy by "qualifying" for your deal after all. It may seem a little counter-intuitive, but it’s a powerful way to use language to your benefit. Use it and see for yourself. 4. "I've got an excellent opportunity for the right person, not sure if that’s you…" This is along similar lines to the previous one, but it goes a little further in affirming the quality of your deal. This statement conveys that it’s not a question whether or not the investing opportunity you have is good… the only question is whether the prospect is the “right” person. Then, you can finish it off with another “...not sure if that’s you” to once again remind them that you're not a salesman here. 5. "I’m going to have this deal financed by (x-date), so if you are interested, I’ll need to know soon…" Promote urgency and scarcity! Letting the prospect know that you’ll have the deal financed by a certain date does two things… (i) It tells them they need to act fast if they want to get involved, and (ii) It positions you as a confident businessman. It’s not a matter of whether or not you’ll get it financed; it’s a matter of who will take advantage of your opportunity the quickest, and enjoy the inevitable gains to come. Having a limited number or a limited time frame will always increase response no matter your product or service. If you have confidence in yourself and your investments, other people will too. 6. "When should I expect to hear back from you?" So your prospect has shown interest and told you they would think about it or check on the availability of their funds or talk to their spouse. Now you need to clearly define the next step as far as your communication goes, so ask them very specifically when you can expect to hear back from them. Make sure they are specific with their answer (as in “next Monday”). Then I usually follow up their response with, “Okay, Monday sounds great. And I know that we’re both busy people. If I haven’t heard from you by Monday afternoon at 3:00pm, do you mind if I follow up with you?” 7. "Would you like me to notify you of our next opportunity?" This one ensures that the people on your follow-up list actually want to continue being contacted with future opportunities. I found that everyone I contacted was delighted to hear from me and be presented with the opportunity, even if they weren't interested at the time. But it's always a good idea to make sure, and to set an expectation that they will be contacted by you again next time.   "
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You Give LUCK a Bad Name

Patrick Riddle | Inner Game
" Hey Moguls, Patrick Riddle here…and I’m just gonna say it – this may rub you the wrong way, but it's something you need to hear. Ok, here goes... I'm sick and tired of all the finger pointing, blaming, and complaining that I hear from people who haven't seen the success they desire in real estate yet.   There is NO product, course, training program, webinar, system, guru, coaching program, mentor, pill, magic bullet, or ANYTHING that will "make" you successful. Anything in life that's worthwhile requires hard work. There is NO way around this. Even though many things that myself and other gurus teach are simple when you get down to it... that doesn't mean they're easy.  I've worked my a** off for everything in my life. Do you want success? ... I mean, do you REALLY want it?  OK then... YOU have to hustle.  YOU must be persistent. YOU have to be relentless.  YOU better stop complaining and blaming. YOU have to confront the inevitable obstacle with resolve.  YOU gotta get over your FEARS and take massive action! YOU need to stop buying stuff if you already have 18 other courses on your shelf collecting dust!  YOU should STOP saying "it doesn't work"... because the most probable reality is that YOU didn't work it. (And yes, we both know there are courses and programs out there that suck... but the way I look at it is, I've learned something from every single educational thing I've ever studied.) YOU should NEVER buy a course if you're mindset is, "Well, if I don't get the results, I'll just return it."  Why?   ... because that’s a great recipe for failure. Consider This If most people approached learning how to walk the same way they approached real estate investing, they'd be crawling around on their knees their entire life cursing the minority of walkers saying they just got lucky and that their success was circumstantial. In my view, that’s just giving “luck” a bad name. The fact is – there is no LUCK except the LUCK you make for yourself. You gotta make it happen come hell or high water. As a child, you hadn’t already accepted the bald-face lie of the failure mindset… When you fell down, you didn’t blame the ground, or your shoes, or whoever tried to teach you how to walk... YOU GOT UP, BRUSHED YOURSELF OFF AND KEPT TRYING AGAIN AND AGAIN UNTIL YOU SUCCEEDED! ... and that my friend is when you find moments of success. With practice, those moments become habits and those habits become YOU. Here's the ONLY thing you can count on: YOU will experience hardship. YOU will experience disappointment. ... but the difference between someone who succeeds and someone who fails miserably is simply this how YOU respond to hardship and disappointment.  The Good News What drives a boat? The wake or the motor?  Sadly for most people, the wake drives the boat. In other words, the past dictates your every thought and action. FORGET ABOUT THE PAST! IT'S THE PAST!!  It doesn't matter what you've done or not done. It doesn't matter what anyone has told you that you can or can't do. It doesn't matter where you're at right now...  Heck, not that long ago, my entire business came crashing down on me... almost every bad thing that can happen in real estate did... from foreclosure to lawsuits, judgments, you name it!  Did I sit around and cry about it?  Actually, yeah I did... for a few minutes. Then I got off my butt, reformulated a plan, and took action. Look, I'm here to tell you... you can do ANYTHING you set your mind to – when you approach it with the right attitude and action plan. Too many people think success is all about tactics and systems that do everything for you. Sorry to break this to you... but NOTHING will ever guarantee your success... unless YOU do.  I REPEAT... NOTHING WILL EVER GUARANTEE YOUR SUCCESS UNLESS YOU DO!            - Patrick P.S. For more awesomeness from me, check out my previous lessons. There’s good info in those, plus more good stuff in this live training call and this one too. Enjoy! Holla at us Are you with me on this one? I’d love to hear your thoughts and what’s on your mind in the comments section below.   "
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The Half-Minute Private Money Hook

Patrick Riddle | Funding
" Howdy, Moguls, Patrick Riddle here.  A while back, one of our esteemed experts wrote a great lesson about the best hook to use to get private money lenders to secure you in a deal. Well today, I am going to give you my personal version of this same concept. (Oh, and please check out some of my awesome previous lessons, they’ve got great info too.) We’re going to discuss a short (but powerful) script you can use to literally attract private lenders to you in the normal course of your day-to-day hobnobbing and meeting people. Get Them to Come to You A few years ago, I had a big mental shift occur in how I thought about trying to get private money. For a while I’d been trying to ask all the right people, and I enjoyed a little success, but it was always hard and somewhat awkward to do the “ask” part. But after my “a-ha” moment, instead of trying to “sell” people on lending me their money, I say and do things in certain ways to make them want to ask me about lending me their money. Now I’m going to share my strategy with you guys because it’s a heck of a lot easier, and it’s gotten me some fantastic deals. Truth be told, it’s pretty darn simple when you know how to do it – and do it correctly. What I’m sharing with you today is something I often refer to this as the “Half-Minute Private Money Hook” and you’ll find that it’s: Simple, straightforward and easy to remember Very specific and intentional in how it “baits” and “hooks” your prospects to want to know more Subtle and effective But rather than just handing you the script and sending you on your happy way, we’d be remiss if we didn't take a moment to dissect it a little for you. To really get the most value out of this, you should understand not only the “science” behind it, but also the “art” – and both are key. The Basic Structure of the Half-Minute Private Money Hook So here’s how it’s done… Step #1: Tell them what you do. When you explain how your investing strategy works, do it in a way even a 2nd grader would understand. For example, here’s a great 30-second spiel: “We buy, lease, and sell real estate. And use cash from investors to do so.” Step #2: Trigger pain points by saying something such as, “Typically, we work with people who …” are tired of the volatility of the stock market. are frustrated with the meager returns in their CDs, mutual funds and IRAs . are done with the instability of their current investments and ready for something new and secure. Get them to self-identify with what you are saying, and peek their curiosity by stating the pain you think they are experiencing. Step #3: Say a one liner about what it is you offer, along the lines of: “We provide safe, secure opportunities in real estate for everyday people by getting their money to work hard for them instead of the other way around.” Step #4: Ask a “yes” question End with a question that they will answer with a “yes.” My favorite is: Does that make sense?” Let’s do a little impromptu to make it a little clearer… The Hook in Action Here’s the scenario: You are networking at an REI club meeting and have just met a potential investor… Me: Hi, my name is Patrick, nice to meet you, Bob. Potential Investor: What is it you do, Patrick? Me: We buy, lease, and sell real estate. And use cash from investors to do so (step 1). Typically, we work with people who are frustrated with the meager returns in their CDs and mutual funds and IRAs (step 2). We provide safe, secure opportunities in real estate for everyday people by getting their money to work hard for them instead of the other way around (step 3). Does that make sense (step 4)?   Potential Investor: Yes, it does. Tell me more about… (If they don’t ask for more information here, that’s okay. Many times they come back later). Tip: Say “we” instead of “I” because you always want to use the higher-authority angle. This conveys that you are not the decision maker (or sole decision maker). And Always Remember… In day-to-day life it’s important to always have your radar on for potential-investing prospects. Deals can happen anywhere – from networking to a 30-second elevator ride. It’s not about spearing those fish in the sea, it’s about keeping that hook out there with the right bait. Make what you put on that hook intentional, and then reel them in. Now it’s time for you to leverage what we've just handed you, and go craft your own awesome version of it. Whatcha Think? Any comments or questions? Just leave them below. We’re (see what I just did there, using the ‘we’ instead of ‘I’) here to help!   "
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7 Things to Do When Hiring New Team Members

Patrick Riddle | Business Development
" Hey guys – with this lesson, we’re excited to bring to you the kickoff for our newest series. We’re calling it the “7 Things” Series. In this series, we’ll hand off a subject to one of our advisors and then ask them to come up with 7 important things that they’d like to share about that topic. You’ll be seeing a lot more of these types of lessons coming out in the near future. Each advisor will have their own spin on this theme. And who better to feature in this kickoff lesson than our own veteran, long-standing contributing advisor, Patrick Riddle. Kick it Off, Patrick This is Patrick here, and I’m super excited about being the first one out of the gate to kick off the new “7 Things” Series. I’m also excited that I get to address a subject that fits in the business-building arena. I’m a firm believer that business building is every bit as important as learning real estate investment strategies. Building a business, and putting together real estate deals, are two entirely different things – both of which require two entirely different skill sets. Both are equally important in your success. In this lesson I share the steps that I take when hiring new team members. These are the 7 steps that I take, and also are the steps I recommend to other people. This is good timing because I recently hired my newest team member, Pamela. I can use her as a great example which will give you even more insight. 1) Clarify the Position When you first consider hiring another person for your team, the first thing you need to do is clarify the position. Make sure you’re clear on exactly what you want that employee to do for you. Oftentimes, I even write it out just to clarify in my own mind: “I want to bring on someone to do X, and have this position with these responsibilities, and this person will handle these specific tasks." From there I create that list of the responsibilities that I want to hand off. 2) Seek Referrals The next step is to seek referrals. In my experience, I’ve found that referrals are the best sources for finding team members. This can happen in the course of my daily conversations… and as we’re chatting about a few things, I’ll say: “Oh, and also, I'm hiring someone in my investment business. So, I'm pretty excited about that." Just by casually tossing out that bit of info, I end up getting referrals. In my most recent hire, I got three referrals from local friends and associates. One of those referrals was a woman named Pamela. This came from a good friend of mine because Pamela used to work for his business, which is a similar type of real estate investing business. Additionally, she has a background working with different real estate brokerages, and she used to be a Realtor. It seemed like the perfect fit. 3) Go to Craigslist If I haven't gotten a good fit from referrals, then I turn to Craigslist. When I post on Craigslist for a new team member, I make the interested person follow a few specific steps in a process. For instance – I ask the person to send an email to a specific email address containing their resume. I then ask them to answer three questions. Why do I do this? Because I’ve discovered that many times people don't follow these simple steps. This means I can immediately disqualify them. Typically only 20% to 30% of people actually follow the steps that are outlined. What an easy, quick way to whittle down the list of applicants. Once you have a smaller list, you can ask them to fill out a longer questionnaire and gain all kinds of information. Ask them to take these steps before you ever even talk to anybody on the phone. This will help you to disqualify the majority of applicants who would otherwise just waste your time. 4) A Get to Know You Call By this point, I have a list of potential candidates – now it’s time to set up what I call a Get to Know You call. Just by chatting with the person on the phone, I can get a pretty good idea as to whether or not they might be a good fit. This is not a structured call. I usually start off by saying something like: "Tell me a little bit about yourself. What do you like to do?" I don't just talk business. I try to make this informal and put them at ease. I’m using this call to feel out this person. I usually let them know just a little about the specific business model that we have and a rough idea for the position that I'm looking to fill. 5) A Talk About the Details Meeting For the person/people who passes the Get to Know You call, I set up a Talk About the Details meeting. There, I'll go through all the further details and clarify exactly what the position is and the idea for how we would get started if things worked out. 6) Make Them a Job Offer I can usually tell from the details in these conversations which of these candidates I want to go with. As you can see, I’ve factored in a number of hoops for the applicants to jump through. I’m now ready to make them a job offer. But I’m still not quite ready for a long-term commitment. 7) Start with a Short Trial Period I will now set up a trial period that will cover a short time – maybe 30, 60, or 90 days. (You can do what works best for you.) With Pamela, I set up a 60-day trial period. This is how I explained the situation to her: “This trial period is for me to find out whether or not I feel you're a good fit for this position. But, it's also a chance for you to find out whether or not this is something that you feel you would enjoy doing.” The idea of a test period makes it more comfortable for everyone. That way if things don’t work out, both of us will feel free to easily back out. So even after you’ve discussed all the specifics of the responsibilities involved, I still strongly suggest setting up a short test period. How to Setup Job Responsibilities and Compensation Some of you may be wondering exactly how we set up the job responsibilities and compensation. Here are the details... In the beginning, we're going to focus on one small part of Pamela’s overall role. Later, her role will grow and expand, but I choose to start small and work up. The first area is lead harvesting and list segmenting. A. Lead harvesting & List Segmenting We do a lot of direct mail in our business, so her position will be harvesting the different leads that we target through direct mail, segmenting our list and coordinating with our direct mail company to get those off the ground. B. Managing Contact to Appointment The second part involves the contact to appointment, which consists of handling all the incoming calls from sellers. She will be: Qualifying those leads; Doing preliminary due diligence; and Setting up appointments for my partner to go and negotiate if the deal makes sense. It is in this second area where we're going to initially focus all her efforts until she becomes proficient in this one task. C. Transactional Management Contract to Close The third part of her overall position will be to help with the coordination and organization from contract to close. She will take care of all the details from when we get a contract on a property all the way through to taking it to the closing table. Pay Structure There’re a couple different ways that you can structure compensation. For this trial period with Pamela, we're paying her a base amount plus commission on the properties that we flip. The base rate is $250 per week; plus a small percentage commission from the deals that we flip and close. Put it All Together There you have it. If you’re still trying to run your investing business as a soloprenuer, I strongly advise you to stop. There are some fears that you may have to break through in order to take that step. But I say, take that step anyway. When you do, it’ll allow you more time to focus on what you’re best at doing – and that’s finding deals and bringing in the money. Talk to Me, Moguls Please chime in with your comments. Do you like this series idea? Do you have suggestions for something you’d like to see included in the series?   "
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One of the Darkest Times in My Life For Sure

Patrick Riddle | Inner Game
" Hey Moguls, Patrick Riddle here… Have you ever felt sucker punched by life? I mean, things seem to be going just fine, all hunky-dory, when suddenly out of nowhere -- WHAM! Something happens that just waylays you. Man, I sure have. Many times actually. But we all have, right? Life has its ups and downs... and it's way ups, and it's waaaaay downs. We all get served our fair share of "good," "bad," and "ugly"... But here's a twist (and I'm just being completely honest here): I actually feel deeply GRATEFUL for ALL of these "bad" and "ugly" experiences in my life. Little weird, huh?  I know, but give me a chance here... Let me explain… Reality for most people is that they only ever feel grateful for the "good" things that happen in life. But that's easy, right? These are the WINS. Well here's the thing: It's actually the "bad" stuff, those sucker punches out of nowhere, that actually sharpen us and make us better versions of ourselves... Truth be told, it's the "ugly" stuff that often ends up being responsible for much of the "good" and truly beautiful parts of our life. Think of the pain of childbirth, for example. Here, let's make it personal… at one time, my entire business came wholly crashing down on me... and I mean, just about every bad thing that can happen to a guy in real estate, happened to me... from foreclosure to lawsuits, judgments, you name it. One minute I was on top of the world, and the next it all fell apart. And yes, I felt embarrassed, ashamed, and more than a little defeated at the time. It was straight-up the most difficult, darkest time in my life up to that point... But you know what? I am ABSOLUTELY a better man for it today. I THINK differently now than I did back before it all crashed down on top of me. I MAKE DECISIONS differently now -- both personally and professionally. I VALUE things in my life differently. I'm truly a better version of myself in many ways. And because of this, I'm able to be truly GRATEFUL for the pain I experienced going through all that. Consider this: GOLD must be refined by FIRE. The hotter the fire, the brighter the gold. Now let me clarify... I'm NOT saying it's always easy to express true gratitude for the "bad" or the "ugly." No, it's not. Especially not at the time. BUT, I'm here to tell you THE GOOD IS THERE. And it's soooo worth it to go through the process of finding it, and then connecting those dots. So here's my personal challenge to you... It's just 3 simple steps... Step 1: Look at the Bad Stop right now and think about a specific "bad/ugly/painful" experience from your life. It could be something from your past or even something you're going through right now. It may hurt a little, but trust me... Then... Step 2: Extract the Good Take some time to intentionally ponder the positive things that have come from the "bad." It may take some work, but trust me, it's there. Did you learn an invaluable lesson or two? Did a door close on you, but then also open another, better one down the road? Are you now able to empathize with others going through a similar challenge today? Did you have a major shift in your perspectives, values or wisdom afterward? Just ask yourself, "What can I learn from this?" or "What good came from this?" and then write down what comes to mind. Extract the good out of the bad. Then finally... Step 3: Own It For the next 7 days, I want you to practice being intentionally grateful for those things. Not just the good outcome, but the "bad" that triggered it. Find some way to express your sincere gratitude and appreciation for this "bad/ugly" thing having being part of your life story. One great way to do this can be to simply share it with someone else. Just find someone and tell them your "bad/ugly" story... then share the good that you can see has come from it. Connect those dots and uncover your own redemption story. And here's an interesting thing that you'll notice: The more you do this, the easier it becomes. Then, before you know it, it's become a part of your own personal culture. You just naturally look for the good in every "bad/ugly" that you face. It's a pretty neat thing. So... Are you up for the challenge? I hope so. You'll be glad you did. :-) (Want more goods from yours truly? Be sure to check out my other awesome Mogul lessons.) ~ Patrick P.S. - Believe it or not, this kind of "mindset sharpening" is one of the most critically important things you can do to shorten your own path to success in this business... Waaaay more than any real estate tactic or strategy I can teach you. In fact, most people who flat out fail in REI, do so because of their own inner demons, not for lack of tactics or strategies that really work. It's just the cold, harsh truth. Holla at me How did you get through your dark times? Share with us below in the comments section.   "
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