Secret Ninja Strategy For Getting Private Money Revealed

One of the best types of private money prospects are people that know and trust you.

These are your family, friends, work colleagues . . . really anyone whom which you have a strong personal relationship.

But there’s a BIG problem with that type of prospect!

The problem is that most people flat out don’t want to ask people like that for private money. And it’s not even just that they don’t want to . . . they won’t even consider it.

. . . I can understand how you feel because I felt the exact same way when I first got started. And even though I hated doing it, I made myself due to the desperate need we had for private money. We NEEDED a financing solution for our real estate investing business. Conventional financing and hard money weren’t cutting it.

One day, my business partner brought home another great contract on a property in Summerville, SC and so the ball was back in my court to find private money to finance it.

I reluctantly started making a list of people to call and then, all the sudden, I thought of a different angle of how to structure the call . . . a different way to “sell” my program.

. . . and let me tell you . . . it made ALL the difference! You’ve gotta check out this secret ninja strategy for getting private money.

Watch the video below now . . .

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– Patrick & Trevor

How to Get Private Money at Your Local REIA Group

Got a question from one of our private money students recently and wanted to share it with you …

Great question, Gene …

At my local REIA (real estate investment association) meeting, the group leader always asks if anyone has a deal they want to pass by the group … what a GREAT opportunity to present your deal to potential private money prospects.

For those of you that don’t already know, I’ve turned tons of people that I’ve met at my local REIA group into my private money lenders … even ones that are active investors themselves.

Check out the video below for a complete script of what to say (even if your REIA group doesn’t give you a chance to pitch a deal during the meeting, the script can be crafted to a single person or small group).

Soooooo, when you need to get a deal funded ASAP, here’s what you say …

I thought I’d make it really easy for you and type out the meat and potatoes from the video for you as well …

4 Fundamental Elements When Presenting for Private Money to Your REIA

1. Paint the Big Picture
2. WIIFT (if you don’t know what that stands for, guess you have to watch the video 🙂
3. Promote Scarcity
4. Disqualify Them

**Private Money Power Script**

WARNING: When using this alluring script, you may have to break up a fight … a fight between everyone who wants to fund your deal!

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“We have an excellent deal under contract … a 52 unit building that we’ll be closing in the next <X> days. We’ve already done our homework and KNOW that this deal is rock solid.

Now, this opportunity isn’t for everyone … but there is a chance for one lucky individual to jump on board with us and make a great return. We’re bringing in a private investor for $ <X> Dollars to provide the cash needed to do the deal.

This person will … simply by writing a check … make a great safe return on their investment dollars … not have to deal with the hassle of owning and managing real estate … not have to deal with contractors or tenants … (because we do EVERYTHING for you) … not have to spend an ounce of their time … and still receive all the excellent benefits that real estate investing has to offer.

As you can imagine, this opportunity will not last long … they NEVER do … because we’ll have a private investor committed to fund this deal by next <X>.

Soooooo, if you want to jump on this opportunity before it’s gone, write the best time for me to call you on your business card and get it to me before I leave tonight.

Thanks and again … we know that this ISN’T for everyone … just those looking for a easy, hands off, safe, excellent return backed by real estate.”

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The primary way we teach to get private money isn’t to “pitch” a deal to a prospect first … it’s to pique a person’s interest and get them into a formal appointment. BUT, if you have the opportunity to present a deal to an entire room of real estate investors … DO IT! And, this script can come in handy when you’re under the gun to close fast.

Not sure if Gene already has his deal funded so if anyone wants to hear more about his private money opportunity, throw a comment below, and we’ll hook you guys up.

– Patrick & Trevor

Are You Asking the Right Questions to Borrow Private Money?

The most effective strategy to borrow private money is to ask your prospect the right questions. Questions that elicit motivation, questions that uncover goals, questions that make the prospect imagine themselves enjoying and benefiting from your investment program.

When you borrow private money, here are 5 questions to ask prospects . . .

(Quick Tip: Make sure to write down everything a prospect tells you when you’re going through these questions. This is valuable info!)

1) What experience do you have investing?

Find out if they are or have invested in CDs, mutual funds, bonds, stocks, real estate, race horses, or gold. This will help you get a good picture of the type of investor you’re dealing with, their expectations, how knowledgeable they are with investments, etc.

If they have any experience investing in real estate, you want to know the details. What did they like? What did they dislike?

The prospect’s answer will indicate whether they primarily move away from pain (losing money or earning meager returns) or towards pleasure (making more money/better returns/financial freedom). Note whether they move away from pain or towards pleasure. You will present your investment opportunity to them based on this information.

2) Are you happy with the performance of your investments (investment portfolio)?

Whether they are happy with it or not, you ask the same question next . . . “What average rate of return have you been getting from your investments?”

At this point, if they tell you a 20% annualized return, you can let them know it was nice talking with them and move onto the next prospect. You just saved yourself some time.

Let’s say the prospect said he or she was earning a 6% return on x-investment. At the end of your presentation, you could say something like, “Well, I’m not sure if we can do this or not but . . . what if we could offer you a 8% annualized return backed by real estate . . . would that be something that might work for you?”

3) Whether or not our program is a fit, is it important that you find the right investment opportunity soon?

If they say “no,” this may be a good person to add to your follow up list. You could also say something like this to them, “Sooooo if the money stayed in x-investment earning x% for say another 6 to 12 months, you would be fine with that?” Or, “If your money just sits there earning you nothing for x-time, you’re ok with that?”

If they say it’s important to find an investment soon, you have a green light to continue moving forward towards turning them into a private lender.

4) Are you more interested in making a quick buck or building wealth?

This is another way of asking if the prospect is interested in a short or long term investment. We would prefer that the person invest long term. So by saying “quick buck,” we’re already putting a negative connotation around that idea. The longer term you can negotiate, the better.

If you find out the prospect just wants to make a quick buck, it may be best to move on.

5) What would the right investment provide for you?

This question is key to get the prospect visualizing a positive experience with your investment opportunity. And we’re not even referencing our investment.

Get your prospect to imagine retiring one day with complete financial security, going on that dream family vacation, feeling safe and secure and your prospect will associate those feelings with your investment program.

Remember, borrowing private money is all about asking good questions. So ask good questions and then keep your mouth shut. The more you learn about your prospect, the better the chance of converting them into a private money lender.

– Patrick and Trevor