How to Explain the “Worst Case Scenario” to a Private Money Lending Prospect
Posted by Patrick_Riddle
Filed under Private Money Articles
What do you say to a private money lending prospect when they ask you the dreaded … “Worst Case Scenario Question” …
This is one of those questions that comes up practically EVERY TIME you present your private lending program.
One of our students, Jose, recently had this exact question and wanted to know how to navigate this touchy subject without scaring them off … check out his email to us below …
Great question Jose … we get this one all the time …
What you say to answer this question, AND how you say it could easily make or break the deal … heck, where you answer this question could easily make or break the deal (as a Private Money Blueprint student, you know exactly what I’m talking about, don’t you?).
Check out the video below … I not only tell you exaclty what to say and how to say it, I also let you in on where to answer this type of question (most investors get this all wrong) …
Leave your questions, comments, tips below …
– Patrick & Trevor
That was great patrick. That would put anyone at ease and ready to invest.
Gene
Hey! Thanks for all the great information. You really make things easy for us beginners.
Leo
Hey Gene … anyone that wants private money needs to know what they’re going to say when … not if … they get this question … glad you liked it …
~ Patrick
No problem Leo! That’s what we’re here for… just keep your questions coming and get out there and actually apply what you’re learning. 🙂
-T
Oh yeah … Yo Leo … that’s great to hear that we’re making things easy for beginners … that’s our goal!
~ Patrick
Patrick I do believe you could sell the Brooklyn Brige. Sir i wish my brain was that fast
Hi Patrick,
I”m in California, a note+deed (not mortgage) state (at least for bank loans). Does that mean that by default our method would be to put a deed into escrow? Or is doing the deed thing still going the extra mile?
That was really good. Hey guys do we have anything on short sales. Thanks Richard
Thanks Richard … LOL …
I have an audio recording that I did with a short sales expert … I’ll email you the download link ….
~ Patrick
I always advice my coaching student to answer this straight up and tell them like all business transactions there is risk and they should be in position to handle the risk but at the same time you minimize the risk by
1) Buying right and leaving plenty of cuhsion
2) Buying property insurnance if it burns down
3) Doing your homework with indenpendent 3rd parties who appraise the property for its final valua
If you dot hese thisngs and use good business judegment you minimize the risk and worse case
Mike
Hey Eric … California is a note and deed of trust state. When I reference the deed, I’m referring to the title, the ownership of the property. That’s different than the deed of trust. So yes, it’s still going the extra mile.
Michel … nice advice. I like it.
Hi Patrick – it sounds like the investor you refer to is providing you with 100% financing as opposed to partial. Otherwise, I’m curious as to how you could provide a deed for partial financing – I would think that the property would default back to the seller if the deal fell through.
I’m also interested if you or members of your team would be willing to provide a sanity check on any potential deals that we have to make sure they make sense to you – is that something your team might be willing to do?
Thanks for all the info – I find it very helpful – Jeff.
Nice job answering this question Patrick
Hey Jimc, thank ya. Glad you liked it man.
– Patrick
Hey Jeff,
In most of the deals that I do, I borrow enough from a private lender to cover all the cash needed to do the deal (purchase price, repairs, holding costs, etc).
We provide members in any of our training programs (PMBP, PMM, CSI, etc) full support for any questions they have… including helping analyze deals and make sure they make sense.
You’re welcome for the info.
– Patrick