Financing is the biggest challenge for most investors. I previously wrote How to Generate Private Money listing the 6 steps below. Here I will break down the 5th step Handle objections, ask for referrals.
Step 5: Handle objections, ask for referrals
Goal: Overcome objections to optimize success and get referrals
Solution: Anticipate objections and have a solution to handle them. You will find that the same 2 or 3 objections come up 75% of the time and you have to be able to handle them. Common objections are: What if the deal flops, how is my investment secured, what is in it for me, why real estate, etc.
Solution 2: Always ask for referrals. If they do not invest, ask them who they know that would be interested in your opportunity. Just simply ask, “Do you know anyone else who would be interested in a great return on their money?”
Do’s and Don’ts: If they give you an objection you cannot handle, do not stumble around. Simply tell them you do not have an answer but you will get back to them on that. Then ask them if that is the only thing holding them back from moving forward. Thus you are getting them to say Yes if you can handle that objection.
6 Steps to Generating Private Money:
- Pitch your opportunity to everyone – You are not asking for money, you are inviting people to make a great return on their money. The purpose of this step is to get them excited and begging for more information. Usually just an elevator speech and a success story if needed. Do not answer questions, set up a face to face meeting and present your program. Opportunity awaits the savvy investor.
2. Face to Face Presentation – Set up a face to face meeting with all decision makers. At this meeting you can build the most important thing when it comes to generating private money, build TRUST. You can also present using a net meeting if face to face is not possible.
3. Find a great deal, illustrate a win-win, the deal and the risk – Educate interested parties on what is in it for them, the numbers on the deal and how the deal can withstand the worst case scenarios.
4. Play the numbers, all you need is one YES – Do not give up after 3 people, you may need to present it to 300 people before you get the desired results. It is never a bad thing to have people fighting to give you their money.
5. Handle objections, ask for referrals – Learn how to handle objections, anticipate the most common ones. And always ask for referrals. If you are leaving a presentation without a YES you should have 3 referrals.
6. Treat them like your grandmother – Be great to them, not good, great. Also be completely honest and set expectations so you can shatter them.