Putting Your Finger on Your Private Lender’s Pain

We have a great question from Kevin, an investor in Los Angeles, who asks:

“Can you please talk about the importance of asking intelligent questions?”

What Kevin is talking about is how important it is to ask good questions of your private lending prospects.

Let me be really clear here – it’s not just about asking questions, it’s about asking good questions that reveal their area of PAIN.

What do I mean by pain?

Well, maybe they’ve been burned in a previous REI deal by unsecured property or maybe they have terrible returns from the stock market or maybe they’ve got money that’s only growing in a typical bank account at 3%…

By asking the right questions you’ll find out what they need – what they want is useful too – but you should focus on what they need.

Look,you need to find out everything about their investment experience… the good, the bad and the ugly.

No pain, no gain
Here’s what to do…

Ask questions about their goals for the future so you can craft an opportunity that solves their pain and problems and meets their ultimate goals.

So once you know what caused their pain, you can then effectively frame your private funding partner program as the perfect solution to help end their pain.

Get in position
By asking the right questions and getting some good answers, you’ll be able to put yourself in a better position to get a ‘Yes.’

Let’s get back to Kevin, who asked this question, so I can demonstrate exactly what I mean using his real-world situation.

I got a little info from Kevin and I can tell you that he is in an excellent position…

Kevin has a wonderful opportunity with a private money prospect – the prospect has an inheritance, but it has already lost a big $18,000 (ouch!) because of how that investment fund was (mis)managed.

So Kevin has already found out this investor’s pain, an investor who is motivated to find a good opportunity because, well, he’s watching his Benjamins slide right out of his grib – and tht, of course, is painful. Right?

Since Kevin knows what’s causing the pain, he’s in a great position to help out Mr. Inheritance Investor.

Remember – the people who are experiencing some kind of pain are the ones you want to be talking to.

Got anything to add?

Do you have another tip about asking the right questions? Tell us about it in the comments section below.