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

Mortgage 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.

Take Action

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.

Final Note

Do you still need private lender prospects? Click here to find local private lenders in minutes right from your computer.

I’m Listening…

Got a question or comment? Hit me up in the comments section below. I’m here.

Patrick Riddle

Shortly after buying his first real estate investment property wayyyy back in 2002, Patrick decided to quit school to go into investing full-time... and he's been at it ever since. Patrick absolutely LOVES teaching. So, the last few years, he's spent a good bit of time helping other investors learn from his experience and mistakes, to shorten their learning curve to success.

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Fredrick Austin

Great tips Patrick, more tools for the tool box.

William Lynch

Hi Patrick, is it common practice for HML to ask a filing fee up front. If so, what is the general cost? Thanks

    Patrick Riddle

    Hey Bill, no that is NOT common practice. You should never have to pay anything upfront. Any costs associated with private money or hard money should be handled at closing.

    – Patrick

Donna Dettman

Do most private lenders require you to put some of your own cash into the deal because I don’t have any yet?

    Patrick Riddle

    Good question, Donna. It depends on the lender.

    Most private lenders (and hard money lenders) I’ve worked with loan ALL of the money needed to do the deal (purchase price, rehab, holding costs, etc). You may find a lender who wants you to put some skin in the game. If that’s the case, just move on the next lender… or wholesale some deals first to build up some cash reserves.

    When you have a property under contract far enough under value though, there are private lenders who will fund 100% of what you need.

    – Patrick

Michael Morreale

Awesome! I love these little tid-bits and tips on how to communicate effectively to control the conversation. I really like the “we” part and using Aikido to shift the focus to the project.

Barbara John

Awsome strategies for obtaining PM. I was wondering about handling objections and this will do the trick.

Robin Williams

Patrick, I have just read the objections that private money lenders may have given that I’ve never done a deal before. After some practice, I believe I’ll have the confidence to move forward with contacting private money lenders. thanks

    Patrick Riddle

    Hey Robin, love hearing that now you have the confidence to move forward.

    Go get ’em!

    – Patrick

      philip cross

      hi. my name is Philip cross ,please contact me thank you

Michael Shelley

This video and information was truly inspiring and very helpful, thank you.

Gary Tibshraeny

Hello! Thanks for sending your info to me. I’m desperately trying to get financing for a multiple 4 plex project in Mesa, Arizona. I have been flipping for 25 years, now i wholesale and doing OK but want to get back to building 4 plexus. Can you direct me, willing to partner up or whatever. I’m a licenced Contractor and have been for 35 years.
Thanks much for your E-Mails.


Hi Patrick your right on time with this advice. Great strategy! Thanks for sharing. I say wow! here is a chance for newbies to have success with PML’S.

10 hour wholesaler

Patricia Hilderbrand

Thanks Patrick I think you are awesome!!

Daniel MacDuffie

Thanks for posting-


Hi, I’m interested in private money lender.

Curtis Smith

It’s all about value… and trust me when I say this… you all definitely add value. Advice like this can truly make or break a new relationship. Great advice!

Bert Wasylchak

Great info! Still looking forward to MY first deal…confidence is everything when your “new”! Thanks Patrick

    Patrick Riddle

    Hey Bert, keep pushing forward and make that first deal happen. You can do it!

    – Patrick

Yusuf Suida

I have tried to get private money before but it has been unavailable for Canadian citizens even with a US property purchase to anchor the loan, has this changed and can Canadians now get private money for US property purchases

    Patrick Riddle

    Hey Yusuf, check out some of Julie Broad’s info and training. She’s in Canada and has used a lot of private money in her deals over the years.

    – Patrick

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