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Updated over 7 years ago,
Handling this potential investor objection?
I've been discussing potential investment opportunities in apartment syndications with my network, and the toughest objection I've come across is...
"What if I need to get my money out early?"
Now, this is certainly a reasonable question and a valid concern for someone to have. I get it. Crap hits the fan and things can go very wrong with life and personal finance.
However, if this mentality is someone's inclination, I'm not sure how likely they are to actually become an investor. It shows how they see money and investing.
My response typically looks something like...
- You can, but these aren't intended to be liquid investments. Don't invest your bottom dollar in anything and we will not accept your bottom dollar anyway.
- Typically the sponsor will have first right of refusal to buy.
- The sponsor will also have veto power regarding who you sell the investment to, if the sponsor refuses.
So how do you handle this objection?