What It’s Like When I Call My Private Lenders About a Deal

Role playing.

We hear the words, and most of us start sweating. I’m talking cotton mouth, sweaty palms, pit stains and butterflies fluttering around in nervous anticipation of the dreaded scripted pitch to private money prospects.

I know what you’re thinking… If I wanted to be an actor, I would have gone to acting school.

Am I right or am I right? True story indeed, but here’s my rebuttal. It’s a profound one, so pay close attention.

Delivering a scripted telephone pitch isn’t acting if you believe in what you do, if you love what you do and if you always keep in mind (what should be) your #1 mission in the real estate investment business…

I’m talking about helping people. If your intentions are genuine then the scripted pitch isn’t phony.

You’re not acting; it’s the deal real.

Let’s run it back for a hot second

If you recall in my previous (super awesome) blog post, I shared with you how to effectively follow up with your private money prospects… and then I took it a step further. You learned how to not only follow up after presenting your private lending partnership program with them, but you got an insider’s, VIP look at my 7 power phrases.

If you didn’t catch this post (slap on your wrist), then I strongly encourage you to check it out, so you can better recognize how and where I’ve massaged these power phrases into the script I’m going to share with you today.

Now, about that script

Today it’s all the tangibles. I’m excited to share with you a script that I use regularly, so you can see and hear my actual conversations with private money.

It doesn’t get any easier than this, my friends!

Below is the script we use regularly for presenting deals to private lenders. It’s tried and true, so why reinvent the wheel? Get familiar with it and practice it. Grab the wife, the hubby, the cat, your BFF… whomever. Just try it on for size.

Practice makes perfect – or close to it anyway – so use it to pitch the heck out of your deals!

Prospect: Hello.

You: Jim, this is Patrick Riddle. How are you doing today?

Prospect: Doing well, Patrick.

You: Did I catch you at a bad time?

Prospect: No, this is a good time.

You: Great .Well, we’ve got an excellent opportunity for the right person. Not sure if that’s

you, but I thought of you and wanted to run it by you first.

Prospect: I appreciate it, Patrick. Thanks!

You: We contracted a great deal on a property last week and will be bringing in an investor to

put up $90,000 to finance the property. The investment will pay a 10% annualized return and

will be for a two-year term. Is that something that you’d be interested in or probably not?

Prospect: How soon do you need to know?

You: I’m going to have it financed by next Friday, so if you’re interested I would need to know

soon. I just wanted to give you the first shot at it since it’s such a great opportunity.

Prospect: Okay .Will this be set up the same way that you explained it in the presentation?

You: Yes, you’ll be secured just like a bank when they lend money. You’ll be secured on the

property with a mortgage/deed of trust. You’ll get a promissory note and will be named on the

insurance policy . . . just like I explained before. Our attorney will be preparing all of your

paperwork for you. Is there any other information you would NEED to make a decision to get started investing?

Prospect: How much is the property worth?

You: With the $90,000, we will be able to buy it and get the property into excellent condition. It

will be worth $135K. Sooooo, we’re buying the property at about 65% of value. It’s a great

deal!

Prospect: Could you show me how you came up with the property’s value?

You: I would be happy to. There are several other properties in the neighborhood that have

sold and are very similar to the one that we’re buying. Is there anything else that you NEED from me to make a decision?

Prospect: No, I guess that would be it.

You: So, if you can see that the property is worth at least $135K, you would want me to take

this opportunity off the market?

Prospect: Yes!

You: Are the funds that you would be using for the investment accessible?

Prospect: Yes, they are. I could just write a check whenever it was needed.

You: Great! What’s the best day and time for us to get together and firm up the details?

Prospect: I could do tomorrow at noon at my office.

You: That works for me. I’ll see you tomorrow.

Wham bam, thank you private money prospect!

I mean, really. How simple and straight forward was that?

Did you notice how I elegantly (if I do say so myself) and effortlessly lead my private lender prospect down the path I wanted him to go? My words, the questions and, of course, the sincere delivery helped guide him in the direction I wanted him to go… and it will do the same for you.

Anyone can get comfortable with this script. It’s conversational, it’s engaging and considerate and most importantly – brief! Your prospect’s time is precious, so the faster you can get to the point and reassure them that you’ve thought only of them for a particular deal, the better your chances are of securing the funds you need.

Remember, you’re in this business to make money, of course, but you’re also in it to help people, to be the liberator, the redeemer, their ultimate problem solver. So deliver the pitch with confidence knowing your intentions are good…. and so is the script.

When it comes to the pitch, is it the phone way or the highway?

Next up, we’ll talk more about presenting an actual deal and what key ingredients you’ll need to bring to the table. But you may be wondering, in the meantime, if the phone pitch is the only pitch method out there.

 

My answer is simple.

 

At first, you’ll need to take a more professional but personal approach until you’ve established a solid rapport with your prospects. If you seem too informal during those first few communications – that prospect “courting” phase, if you will – you risk turning off your lender or even offending him or her.

 

Bottom line is once you have made some history together, then your pitch can be as simple and brief as a 5-minute (or less) phone call.

Here’s hoping you find the script to a major game changer.

Flip the script

Got your own spin on our script you’d like to share? Give us the 411 by leaving a comment below.