5 Private Money Persuasion Tricks

Over the years, I’ve learned a few tricks to persuading private lender prospects to fund my deals. My process to attain private money goes like this…

First, I show the prospect my PowerPoint presentation. Following the presentation, I’m ready to begin running specific funding-opportunity deals by my prospective lenders.

It’s at this point when these 5 private money persuasion tricks come into play. They are designed to move your lender closer to saying, “Yes, I’ll fund your next deal.”

1. The Dale Carnegie approach

If ol’ Dale Carnegie was still around today and wanted to get some private money, I know what he would do…

He’d follow one of the same principles that worked well for him back in the early 1900s…

Make the other person feel important and do it sincerely.

He’d say something like, “I thought of you when this investment opportunity came up.” This is a great way to show appreciation to your prospect and make ‘em feel all warm and fuzzy inside.

2. The instant value assumption

All righty, this is a ninja technique you can use so that your prospect’s natural assumption is to think that your investment opportunity is excellent… and you’ll be positioning yourself in the reluctant role. Powerful stuff.

I developed this trick out of frustration from always feeling like I was in the weaker position simply because I so hated asking for money. I struggled with a lot of mental chatter that kept me from clear thinking. Eventually, I did a mental shift when I narrowed this down to two clear points:

1. I have an excellent deal to offer.
2. Are you the right person to get in on it?

You take care of both like this… say to the prospective lender:

“I have an excellent investment opportunity for the right person… ”

The only question here is whether your prospect is the “right” person for the investment. This gives your investment instant value and shifts the power from your prospect to you as they question whether they will qualify to work with you. Kapow!

3. The single whammy

It’s no secret that people are drawn to what they can’t have and assign high value to things that are scarce. That’s why you should be using what I call the “Single Whammy” (aka Scarcity) to compel your prospects to make decisions.

Say something like, “I’m going to have this deal financed by XX date.”

This tells your prospect that they need to act fast if they don’t want to miss out. It communicates that it’s not a matter of whether or not the deal will get it financed; it’s a matter of who acts the fastest on the opportunity.

Also, this positions you as a confident businessman/woman. And when you’re perceived to have confidence in yourself and your investments, other people will too.

4. Fail proofing your follow up

Okay, you submitted your deal-funding proposal to your prospect. They’ve shown interest and told you that they would think about it – or check on the availability of their funds – or talk to their spouse – or ask their astrologer…

There are 2 questions to ask to “fail proof” your follow-up:

First, ask –“When should I expect to hear back from you?”

This means there’s a clearly defined next step for your communication. Make sure they are specific with their answer – as in, next Monday or Wednesday morning.

Then say – “Okay, Monday sounds great. And I know that we’re both busy people. If I haven’t heard from you by Monday afternoon at 4, do you mind if I follow up with you?”

Congratulations, your follow-up has just been made fail-proof.

5. The boomerang method

When one of your prospects lets you know that they’re not interested in your deal, make sure they want to continue being contacted by you with future opportunities.

Nine times out of 10, since you’re offering “make money” opportunities, your prospects will want to continue hearing from you even if now isn’t a good time for them to invest.

I call this “The Boomerang Method” because it keeps your prospects in the loop.

Ask them: “Would you like me to contact you about our next opportunity?” This shows respect for your prospect (which they’ll appreciate) and sets the stage for passing your next deal by ‘em.

Summing up

I’m sure you’ve heard the old saying, “The fortune’s in the follow-up.” That is so true in the case of getting private lenders to loan you money for your deals. You’ll soon learn that it’s the follow-up that sets you apart as a true professional in this business.

Enjoy,

Patrick

PS: If you want to see how I get a quick, direct line to people who are already loaning private money in my local area, check out this video presentation.

Whatcha think?

Have you used any of these tricks and they worked? I wanna from you in the comments section below.