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 6th step Treat them like your grandmother.
Step 6: Treat them like your grandmother
Goal: Get them to like and trust you.
Solution: Pay on time, give them first chance to invest in a new opportunity, tell them you do not offer this to everyone. Give them periodic updates on the property so they stay comfortable. It is also a great way to ask for referrals and get them to invest more.
Do’s and Don’ts: Continue to have contact with them. Do not wait 6 or even 3 months in between communications. Drop them an email or call just to see how they are doing. This is about trust so show them some respect and a little love every once in awhile.
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.