Have You Done This With Private Lenders Before?
Posted by Patrick_Riddle
Filed under Private Money Articles, Private Money Monthly
When getting started with private money, what if one of your private money prospects asks you …
“Have you done this with other lenders? If so, could you give me a few names that I could contact?”
How would you respond to that? What would you say?
If you’re like most, you’d probably fumble on your words … stutter a little bit … and leave your prospect with a not-so-good feeling about you and your investment program …
BUT, have no fear … Patrick’s Here!
… lol … ok, maybe that was a little much … but really …
One of our students asked this question recently so I shot a quick video teaching you exactly what I’d say to handle the prospect’s true concern … their comfort level investing with you …
Click the video below to watch the video now!
My advice to you would be to study the script below so that you’ll be ready to fire when a prospect asks you this one …
<< Private Money Script for Squashing this Objection >>
“I’m newer to this but my mentor has been doing it for many years.
Often times when people ask that question, I’ve found that what they want is to feel comfortable about the investment … one thing that I want to make sure that you understand is that you’re investing in a property … a property that is significantly undervalued. So your security is the property itself.
And you will get a chance to make sure the deal provides you all the comfort needed for you to feel safe and secure. Does that make sense?”
Then, if he or she asked again to speak to some of your investors say …
“I’m in the process of qualifying several lenders at this time to get started with me. So far, I haven’t needed extra funds but I’m coming across so many good deals right now that it’s time to build the team to take advantage of this incredible buyer’s market.
You know, this opportunity is definitely not for everyone so I understand if it’s not for you.”
Let us know how we can help you guys out … put your thoughts, questions, and whatever else is on your mind in the comment area below …
- Patrick & Trevor
NOTE: Since March 2009… our students have reported back (this is only what they’ve reported back to us) over $4.75 million in private money “got” to close their real estate deals. If a few hundred thousand or million bucks to make offers would make a difference hop aboard the “PMBP train” while this buyers market is still here.
You could add some scarcity to your script to make it even more possible if done without sounding too cheesy. Maybe something like:
“You know, this isn’t for everyone and if it’s not for you, that’s okay. But I just wanted to let you know that your investment is secured by a significantly undervalued property. I am only accepting a certain number of lenders at this time because (I want to know and work one on one with my lenders, I only need to raise $### dollars, or whatever reason that works well for you, but make it truthful).. but I think the opportunity is great and ‘d love to work with you. Does this make the investment make sense for you?”
or something along those lines.
Just my two cents.. but I hope it’s worth more than that. hehe
Ryan Thompson
HI, PATRICK,, WOW, THE ANSWERS TO THAT QUESTION WAS GREAT,,,I GET MUTE WHEN A LENDER ASK THAT FAMOUS QUESTION….THANK YOU SO MUCH FOR THE ADVICE…!!
Pat,….Thank you sooooooo much for the info you provided free…it is invaluable and I pray I can pay foward too someday…thanks again
Hey Guys,
Great script to put lenders at ease but geeezz louise – what’s with the crazy bird sounds in the back ground!
Best wishes,
Linda
Thats good information. I appreciate alll you help and tips. Keep up the great work.
You’re welcome guys and gals … hope this comes in handy for ya.
Ryan … great tips man! Thanks for sharing … (and just so you know … your “2 cents” are worth far more
Let us know how else we can help …
~ Patrick
Hi Patrick,
Seen your video with the answers to the lenders question. I really appreciate that and the following answer given by one of responders. My question is, may be I am little foolish, but I want to make sure that I am not making any mistake while doing the transaction with the private money lenders, Where the lenders come into the picture when I am the investor and how they are tied to the property, since I am going to put a contract/purchase deed on the property.
Thanks Patrick for the video with the answers.
Davis Chalissery
Hey Davis … I understand your concern … what you want to do is make sure you have all the proper paperwork filled out between you and your private lender.
Your lender will get a note, which explains the terms of the loan, and will either get a mortgage or deed of trust as their security (depending on your state … SC is a mortgage state).
Have an attorney or title company put together the paperwork for you … that’s the easiest way to make sure you’re covering your bases.
Two other things … get a disclaimer signed at closing (this will clearly explain the investment, that there are risks involved, yada yada) … and name your lender on your insurance policy.
Let me know if you have any more questions …
~ Patrick
Patrick,
The script is definitely a good one, particularly for those of us that haven’t done or came across the particular situation. In my case, though I already have a few lenders in my pipe, I came across one that wants to invest much more than I am in my market. This good prospects is good for luxury homes or big commercial buildings. How do I manage to keep someone with $4.7 millions to invest on one shot when I am not doing those type of deals? And I definitely don’t want to pass on this opportunity. LOL