2 Solutions for Handling the #1 Objection from Private Money Lenders
Has it been challenging for you to get private money for your real estate deals?After all, it can be so easy to stumble or just freeze up altogether when you get hit in the face by their #1 question:
“Have you ever done this before? Have you done a deal?”
But wait…don’t panic! Keep reading, because I’m about to share why this simply question can so often tangle you up. And even better, I’m going to help you out by sharing exactly how I handled this question successfully back when I was “wet behind the ears” as an investor.
And let me just say – you’re not alone. Over my years in this, I’ve found that sooooooo many investors commonly have difficulty landing secure, stable private money, and especially if you’re a greenhorn newer to the game.
Here’s why, plain and simple…
It’s a credibility issue.
In other words, the people you view as potential private lenders just don’t believe you’re going to do what you say you’re going to do because of your lack of investing experience. It’s just the something you’ll have to face head-on that private lender prospects will likely feel squeemish about lending to you if they suspect you haven’t done your fist deal yet.
So today, I’m going to tell you how to handle the #1 objection you’re going to face when you start talking to private lenders – so you can turn the corner and get that critical private money.
So first, I made you a fancy video talking frankly all about it. Check it out…
Basically I’m sharing 2 game-changing principles here…
These will help you combat an objection from a private lender prospect and position yourself as highly credible, while at the same time instilling confidence in your lender so they believe you’re going to do what you say you’re going to do.
I’m also giving you 2 mini-scripts to follow that I’ve used successfully myself, so you know exactly what to say.
This is powerful stuff…
#1 Principle of Association
Whether you like it or not, people will judge you based on who you associate with or who they perceive you’re associating with. It’s just human nature.
So it’s not just you standing there solo…it’s you plus your formidable team of
Avengers REI Power Players you’re standing alongside and in who’s company you fit so snugly. By intentionally leveraging their strength and track record, you earn massive credibility by association.
These are people like your:
Real Estate Broker
Closing Attorney or Title Company
You’re going to leverage these team members’ experience and expertise. Any time you’re talking to a private lender prospect or presenting your private lender PowerPoint presentation, you can include information about your team members.
Here’s what I mean…
The closing attorney on my power team has been in business for over 20 years, so I make sure to communicate that with my lenders.
What does that do for me?
Well, his long-time business experience boosts my credibility by association and work partnership.
And make sure you say things like, “we” and “our team” and “us.” Stay away from “I” and “me.” Heck, that may even help direct the conversation…
You: “We have a wonderful opportunity that might be great for you…”
Them: “Cool! But what do you mean, ‘we?’ ”
You: “Well, I’m glad you asked. Having recently launched my investing business, I’ve taken the steps to assemble an incredibly skilled and experienced team of pros, including…”
And just like that, you’ve easily introduced the highly effective Principle of Association. You may be a greener investor, but if you’re using such an experienced, crackerjack team, you must know what you’re doing, right?
Confidence instilled. Let’s take it to another level with…
#2 Principle of Aikido
I know what you’re thinking – Patrick – you’ve lost of it. You have gone off the deep end, brother.
But go with me on this…
As you might know, aikido is a Japanese form of martial arts. The idea of aikido is to go with your opponent’s force – so when they come at you, you move with them instead of coming back at them, opposing their force.
So we’re going to apply this idea when a lender asks you: Have you even done a deal before?
See, when a prospect asks that question, they’re directing all their momentum and force at you. So you want to go with that force and redirect that momentum toward the property – away from you. And discussing the property actually gives the lender comfort, because it’s their security in this type of transaction.
So, the conversation could go like this…
Them: “Have you done a deal before?”
You: “No, I’m a newer investor, new to real estate investing. I’ve been building my business and my experienced team. Look, I want to make sure that you understand, though, that ultimately, your security and your comfort in the transaction is this property – this great opportunity I have for you, which you’ll have a chance to okay and you’ll be able to review all the numbers and information before saying ‘yes’ and getting started with us.”
See how I not only redirected the conversation, but I also dropped in there the Principle of Association. Who doesn’t love a twofer?!
Using the Principle of Aikido and wording your message this way allows you to successfully move the focus from you to the property.
So there you have it…
Implementing these 2 powerful principles will help you build massive credibility. If you haven’t done a deal before, these principles will help you handle that likely objection from a private money prospect.
Put these ideas to work for you, and I know they’ll serve you awesomely.
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Got a question or comment? Hit me up in the comments section below. I’m here.