subject: Step 3 Of 6: How To Generate Private Money [print this page] Financing is the biggest challenge for most investors. I previously wrote How to Generate Private Money listing the 6 steps below. Here I will break down the 3rd step Find a great deal, illustrate a win-win, the deal and the risk.
Step 3: Find a great deal, illustrate a win-win, the deal and the risk
Goal: Inform the potential investor about the deal, the risk and the opportunity
Solution: Show some pictures, pro-forma, details on the property, what it will take to complete the project, exit strategies, length of time to complete, detail the risks and whats in it for the investor.
Dos and Donts: Do not give best case scenario numbers. Be realistic and set expectations that you can shatter. Make it simple and easy to understand. If possible, reference similar successful deals.
6 Steps to Generating Private Money:
1. Pitch your opportunity to everyone You are not asking for money, you are inviting people to make a great return on their money. The purpose of this step is to get them excited and begging for more information. Usually just an elevator speech and a success story if needed. Do not answer questions, set up a face to face meeting and present your program. Opportunity awaits the savvy investor.
2. Face to Face Presentation Set up a face to face meeting with all decision makers. At this meeting you can build the most important thing when it comes to generating private money, build TRUST. You can also present using a net meeting if face to face is not possible.
3. Find a great deal, illustrate a win-win, the deal and the risk - Educate interested parties on what is in it for them, the numbers on the deal and how the deal can withstand the worst case scenarios.
4. Play the numbers, all you need is one YES - Do not give up after 3 people, you may need to present it to 300 people before you get the desired results. It is never a bad thing to have people fighting to give you their money.
5. Handle objections, ask for referrals - Learn how to handle objections, anticipate the most common ones. And always ask for referrals. If you are leaving a presentation without a YES you should have 3 referrals.
6. Treat them like your grandmother - Be great to them, not good, great. Also be completely honest and set expectations so you can shatter them.
Real Return Real Estate for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site http://www.realreturnrealestate.com for all the helpful resources.
by: Ryan Moeller
welcome to Insurances.net (https://www.insurances.net)
