Let’s face it, money does not disappear, it changes hands. There is a lot of money sitting on the sidelines or in investments making little or negative returns and these individuals would love to have a secure double digit return. Here are some keys to get more Private Money then you could ever need.
1. Find a great deal – The deal must have solid and preferably multiple exit strategies and be able to withstand worst case scenarios.
2. Pitch it is an opportunity to everyone you can – Present it as an opportunity, do not say you need it or act desperate. Put your opportunity in front of every family member, friend, person you know, REI Clubs, do forum posts, Craigslists and newspaper ads, I have even gotten responses from bandit signs or direct mail responses from high net worth lists.
3. 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. Handle objections – Ask them what is prohibiting them from moving forward. Handle the objections and get them to commit.
5. 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.
6. Treat them like your grandmother – Be great to them, not good, great. Also be completely honest and set expectations.