P-Rid’s Private Money Millions Series: The Secret Sauce to Get to “YES!”

Hola Amigos!

P-Rid here to deliver the 3rd and final Part, The Secret Sauce to Get to “YES!”, in the Private Money Millions Series.

Have you been spreading the word about your private money lending program, presenting great deals to your prospects, following up with them… AND still NO private money?

If so, you’re probably just missing one of the essential ingredients to the private money getting recipe …

I call it, “The Secret Sauce.”

How does a private money prospect go from being on the fence, from giving you another “no thanks” to enthusiastically saying, “YES, I want to fund your deal!”?

Do you think it’s … something you say, something you do?

What is the Secret Sauce to Get to “YES!”?

Here’s a clue from renowned persuasion expert, Robert Cialdini …

“Human beings have been hard-wired to want what is going away. And far more people are motivated by the thought of potential loss than potential gain.”

– Influence: The psychology of Persuasion by Robert Cialdini

So, in other words, people assign greater value to opportunities that are less available. When something becomes scarce, there’s an inner urge that compels people to action.

That’s the principle of scarcity in action; that’s the secret sauce!

Has your private money getting recipe been missing this vital ingredient?

How to Add the Secret Sauce to Your Private Money Getting Recipe

Here are a few examples how to employ the principle of scarcity to get your private money prospects to “YES!”

“We’re only looking to bring in a few (probably less than 5) highly qualified private investors into our company.”

“We’ll have an investor lined up to fund this deal by next Monday. So, if you’re interested, you’ll definitely need to act fast.”

“I have another investor interested in this lending opportunity, but I thought of you, and wanted to give you the first shot at it.”

In the example’s above, you’ll find that two primary motivating factors are at work …

  1. Limited Number
  2. A Deadline

What other ways can you add in the secret sauce in your private money getting? What other areas of your real estate investing business can you sprinkle in this needed ingredient to get more “YESES!”?

Put your thoughts, ideas, questions, and comments below. We would love to hear from ya..

Well, hope you guys and gals have enjoyed the Private Money Millions series.

Adiós and Happy Private Money Getting!

~ P-Rid

P-Rid’s Private Money Millions Series: Private Money on a Silver Platter

Buenos dias fellow private money getters.

Referrals are like getting private money handed to you on a silver platter and are extremely POWERFUL. Getting referrals puts you on the fast track to unlimited funds for your deals. How?

Let me explain …

To sell anyone anything (in our case, selling a private money prospect on the idea of lending us their investment funds), there is typically a process of converting a prospect’s mindset from unmotivated and skeptical to a motivated buying mindset … let’s call it the “buying process”.

A cold prospect – someone that you do not know nor have any relationship with – begins unmotivated and skeptical. The process of converting them over to a client is MUCH more difficult than say a warm prospect or referral because you start with absolutely zero rapport, credibility, and trust.

A warm prospect – someone you know and have a relationship with – starts further along the “buying process” than a cold prospect. There is already some rapport, credibility, and/or trust inherent in the situation since you’re not Joe Blow off the street who they’ve never heard of.

Warm prospects are the easiest place to start in your private money getting efforts, and, once you get going, getting referrals literally opens up the flood gates of private money to your business.

One of the big reasons why is that the rapport, credibility, and trust that the referral has in the referrer is transferred from the referrer to you and your private lending program. Thus, eliminating in many cases the skeptical mindset that keeps people from lending to you or even meeting with you in the first place.

So, your referred prospects come to you as far along in the “buying process” that the rapport, credibility, and trust (that was transferred over to you) takes them. I’ve had private money referrals where all I did was show up to have a check handed to me. No presentation, no questions, no objections.

Now that’s the POWER of a referral!

So, the next question would be …

How do I Ask For and Get Private Money Lender Referrals?

There are two specific times in the private money getting process that I like to ask for referrals. Below, I’m gonna tell you when to ask and exactly what to say … I’m gonna give you exact scripts that you can immediately “plug and play” into your business.

1. Ask for referrals once you’ve presented your private lending PowerPoint presentation, followed up with the prospect with several lending opportunities, and they still haven’t jumped on a deal with ya.

At this point, you’ve established a relationship with the private money prospect, BUT, for whatever reason, the prospect hasn’t jumped on a deal.

Here’s what you want to do …

After you pass the next deal by the prospect, if they say, “No thanks,” say …

“Well, I understand. Even though this is a great investment opportunity, I know that it’s not right for everybody.

Would you even like for me to continue contacting you with these opportunities?

(if yes) … Ok, then it’s obvious <Insert Prospect’s First Name> that you understand why our lending program makes sense, why it makes sense to invest with us …

I’m not sure if this is you, but … who do you know that may be interested in an opportunity like this? … you know, a great investment opportunity …

(at this point, specify how many referrals you want and name off any groups, organizations, etc that you know the prospect is affiliated with)

<Insert Prospect’s First Name> let’s see if we can list 3 people if … that’s ok with you … people from your church or neighborhood, people that you work with or who attend Rotary with you?”

And then, pick up your pen, look down, and SHUT UP.

No matter how long the silence. Do not say a word.

2. Ask for referrals once you’ve borrowed some dinero from a private lender AND you’ve either made several interest payments to them or you’ve paid them off in full.

Depending on how you structure your private money loans, it will depend on how soon after signing up a new lender you should ask for referrals.

Personally, I do not like to ask a new private lender for referrals until they’ve seen actual results, until they’ve received interest payments or been cashed out in full (if the interest accrued until the loan was paid in full).

So, imagine having a private lender who has been in your program long enough to see and feel some results.

Call ’em on the teléfono (yep, just added another word to my Spanish repertoire) and say this …

“Hey <Insert Private Lender First Name>, this is <Your Name>, did I catch you at a bad time?

(if no) Great. Well, I wanted to ask you a few quick questions about your experience with our investment program. Would that be ok with you?

Thanks. I appreciate it.

First off, how has your experience investing with us gone so far?

(if their experience has been enjoyable/positive, focus on asking additional questions that get them talking about those benefits and then say …)

I’m glad to hear that <Insert Private Lender First Name>.

Well, who else do you know that may be interested in an opportunity like this? … someone who would also enjoy <Insert the Benefits the Prospect Mentioned>  …

(specify how many referrals you want and name off any groups, organizations, etc that you know the prospect is affiliated with)

Let’s see if we can list 3 people if … that’s ok with you … people from your church or neighborhood, people that you work with or who attend Rotary with you?”

And then, you know the drill …

Pick up your pen, look down, and SHUT UP … (or in Spanish) … Cierra La Boca!

No matter how long the silence. Do not say a word.

With your new list of private lending prospects, strike while the irons hot! Set aside time the next day to set up the formal appointment.

Hasta luego,

~ P-Rid

P-Rid’s Private Money Millions Series: How to Explode Your Private Money Lending Program with a Newsletter

Private_Money_Lending_NewsletterHola Amigos!

P-Rid here with Part 1, How to Explode Your Private Money Lending Program with a Newsletter, in the Private Money Millions Series.

What is a Private Money Newsletter?

A private money newsletter is an excellent way to build trust and rapport with your prospects and get mucho dinero faster and easier because of it.

And I’m not talking about an electronic newsletter (however email news letters are highly effective and cheap as well!); I’m talking about a physical snail mail newsletter.

Now, if you’re strapped for time and cash, an e-newsletter is better than nothing, but a physical newsletter is beneficial for many reasons which I’ll cover momentarily.

What To Include In Your Newsletter?

But first, here are a few ideas for what could be included in your private money newsletter:

  • Sample Deals – Show your private money prospects the type of properties you purchase and what the

    potential returns would be.

  • Real World Deals – This is even better than a sample deal because it’s shows what you’re doing, not what you intend to do. If you didn’t use a private lender in your “real world deals”, show what a private lender would have made.
  • Articles – You could either write articles on the bene fits of private lending or cut and paste from articles you find online (make sure to give credit to the author if you cut and paste). Include any articles that build value in real estate investing and private lending.
  • Testimonials – If you’ve never used private money before, get some testimonials from anyone you’ve done business with and use them to build your character and reputation. You could also use testimonials from any buyers and sellers you’ve worked with. Here’s a great tip for ya when getting testimonials: make them results based.
  • Real Estate Market Statistics – People love statistics… and if you’re the one bringing them to them each month they’ll be more apt to open up and read your newsletter.  Also, another benefit of this is that you’re seen as the expert in your area and your credibility goes through the roof.  You can even get other investors and realtors on your newsletter when you give out quality content like this to them for free… and over time you’ll build a great relationship w/ them and convert a good percentage into private lenders (or at the very least buyers of your properties).A great free source for real estate market stats that you can regurgitate and put in your newsletter is John Burns Consulting.  Join their free monthly market stats reports and you’ll get a ton of value out of it.
  • Fotos (aka pictures … still working on my Spanish … had to “google” that one) – Remember the old saying, “A picture is worth a thousand words”? Well, kee p that in mind here. Use pictures of any properties you’ve purchased, people you’ve done business with (buyers, sellers, lenders), or if you’re a newbie, pictures of the type of properties you’ll be purchasing.

Why a Private Money Newsletter Leads to More Money Faster and Easier

  1. More “Touches” Builds Greater Trust and Credibility – In marketing, a “touch” is anytime you put your marketing message in front of your prospect. It coul d be through a TV commercial, newspaper ad, a newsletter, etc. And giving them something tangible, say a physical newsletter that’s mailed out monthly or quarterly, is a powerful “touch”.Also, just the act of continually getting in front of your prospects eyeballs shows that your business is active, you’re doing deals… and you’re making things happen.  This builds massive credibility as they see each and every month the progress you’re taking… and they feel they want in on the action.
  2. Online Biz Makes Owners Lazy – Many busines ses are abandoning direct mail and are doing all their marketing online. BUT, direct mail is still a killer strategy to get your message in front of prospects … use it to set yourself apart from the competition.
  3. People Still LOVE Getting Things in the Mail – There’s something about getting “stuff” in the mail that people just love. Having your newsletter in hand makes it much more likely that it will get read AND it …
  4. Gives Prospects an Easy Way to Spread the Word about Your Private Lending Program – It gives your prospects “something” to show people and ask their opinion about, it gives them something tangible, something re al. This brings your private lending program from the intangible, from just an idea, to something they can look at, touch and feel.

So, Action Steps…

  1. Try out the resources below (yes, we do make money off of some of them if you use them… but, they are resources we personally use and like. If you enjoy our free info we’d appreciate it if you use the links below if you’re going to try out those services :-)… and sign up for a service to deliver your email newsletter.
  2. Set a monthly date for when you’re going to send your newsletter out.  I like the first week of the month.  Once you pick a date stick to that date so your prospects/newsletter subscribers expect it each month.
  3. Start gathering people into your newsletter. Now, you need to start getting people into your newsletter. Start with your family, friends, and people you know. Ask them if they’d like to be updated on what you’re doing in your biz and on the real estate market.  A great way to get them on the newsletter without “selling” is to ask the m for “advice”.  Like… “Hey, I’m starting up a once a month newsletter on our local real estate market and what we’re doing in our business… would you mind if I put you on the list so you can give me feedback on what you like and dislike?”.   That way they’ll get on and give you feedback… but also they’ll see the action you’re taking and will likely become interested.Also, put a newsletter signup box on your website (Aweber will create one for you)… that advertises real estate market statistics for your local area and real estate news and advice.  And/or… advertise a free report.
  4. Ask for referrals. Make sure in your newsletter at the bottom of each issue you add a phrase that says…”Like what you see in our monthly newsletters?  Excellent! Forward this email to people who you know will benefit from it. They’ll appreciate you a ton!”

    That way your current newsletter subscribers are advertising your newsletter for you.

  5. Give them great content like we mentioned above. But, DON’T sell people into your program or offer any specific investments.  What you’ll want to do is chart deals you’re doing, give content, build credibility and trust… and in each issue put a blurb in it saying something like…”Want to learn how to work with our investment company to make passive profits?  Click here“.

    Then, that can take them to a video on using IRA’s to invest in real estate… or to a page that briefly explains that you work with people every day in your community who want to get the benefits of real estate but who don’t want to actively invest in it themselves.  Then, pass them through your Private Lender Questionnaire which qualifies them so you know whether or not they’re an accredited investor that you can talk to.

    Chat w/ your attorney about the specifics… not everyones state laws are the same.

We’ve had students who have emailed us saying that they’ve had people on their newsletter list for months… sometimes well over a year before they decided they wanted to invest with them.  So, for all of the prospects who aren’t 100% serious about private lending quite yet… get them on your newsletter and provide them a ton of value and build credibility with them over time by showing that you’re taking action and running a real business.

It’ll be much more powerful than you think!

Recommended Resources to Get Your Private Money Newsletter Up and Running

Alrighty… now that you realize the importance of a newsletter (gives you an excuse to get in front of your prospect and it builds credibility over time)… here’s a few resources we think you’ll enjoy 🙂

Direct Mail Newsletter Resources:

  • No Hassle Newsletters – This service gives you “done for you” physical newsletter templates and ideas so you just have to plug in your content and run.  It isn’t the cheapest in the world… but their templates and instruction are awesome. Check them out if you want… well worth the monthly cost if you implement it.
  • 1-800-Postcards – A good print shop for good quality and economical printing. They can print up your newsletters for you… or just head down to your local Kinkos or Staples and have them do it for you.

Email Newsletter Resources:

  • Aweber – The email service that we personally use to send our newsletters out. They have very high deliverability, have a ton of really great email templates to choose from, and are affordable… very affordable.  I’ve tried 4 different email services… and Aweber is by far the one I liked the best.  Sign up for a Free Trial
  • Constant Contact – This is another email service… a lot of my friends use them… and like them. I personally prefer Aweber… but, this is another service to try out to see if you like it. They also have great email newsletter templates for you to choose from so you can be up and running your email newsletter within minutes.
  • Online Slideshow ServiceI never did this… but one of our Platinum Students has been sending people from his email newsletter to an online slideshow that documents the property rehab and sale they just completed… from start to finish so the newsletter subscriber (prospect) can see right there that the project is real… and that you as the investor are active and doing deals. This builds huge credibility and is professional.

Well, that does it for Part 1, How to Explode Your Private Money Lending Program with a Newsletter.

Buenas Noches 🙂

~ P-Rid