A Quick & Easy Way to Build Credibility with Private Lenders

 

Once you get bit by the private money 'bug' - there's no turning back.

 

Maybe it's the goal of bigger profits. Maybe getting more respect and having every one of your offers or LOI's taken seriously. Or, maybe...just maybe...you like the thought of not having to crawl on your hands and knees and hope and pray that the mortgage gods of the bailed out banking industry will arbitrarily rule in your favor. Maybe it's all of the above.

 

Whatever your prime motivation is for raising private money, there cannot be enough said about the importance of building credibility.

 

Credibility is what makes the potential investor listen, really listen, to your offer and give it full consideration. Building unshakable credibility is absolutely vital when it comes to differentiating what you are offering vs. what other people vying for your private investors dollars are offering. [don't tell me you forgot that a lot of other folks are pursuing your private investors' funds, did you? No? Ok, good...]

 

Back it up

 

Businesses of all shapes and sizes also fight the same credibility battle. Any time a claim is made (from pizza delivery to stain removal) the customer automatically puts up their guard. Because of all the advertising and marketing messages out there, people are naturally skeptical of any claim. Bottom line: You have to back up any claim you make.

 

For instance: if you claim you can successful place a person’s funds and successfully repay them with interest, you should never take for granted that you have to back up this claim. Just because "the deal is good" is not enough.

 

Showing them your business plan or offering documents is a good start, mandatory, but sometimes that won't even be enough. However, no matter how much you say about you, it won't matter as much as...

 

What other people have to say about you.

 

I'm talking about the irrefutable power of the testimonial.

 

The Power of Other People's Words

 

Ok. That's a pretty big private money marketing secret I just let out of the bag, so let's dig a little further in. I want to make sure you fully understand what I'm driving at... If you tell a potential private lender that you're a good person, that they should do business with you, it will mean something to them. They will take it under advisement. However... if somebody else (a 3rd party) says that you're a good person and that people should do business with you (or invest money with you) the impact on the potential private investor is immeasurable. And, your credibility will SKYROCKET.

 

So, if you already have had a successful relationship with a private lender, you should create a way to approach them about giving you a testimonial. Do this right now while you're thinking about it. "BUT ADAM, I NEVER HAD A PRIVATE LENDER! I AM TRYING TO GET MY FIRST ONE!"

 

Ok. Ok. I hear you. But, guess what?

 

You can still get very valuable testimonials!

 

And this can help you quickly get private money!

 

That's right. You can get testimonials from anybody that you've done business with that will say good things about you. And, here's the really awesome part: you can get lots of testimonials because you are also promoting the other persons business who is giving you the testimonial!

 

It's a total win/win.

 

Imagine the look on a skeptical private lenders face when they see a couple of printed pages with glowing reviews about doing business with you? Picture the skepticism melting away when you send them a letter with a people raving about how great you are. You don't even have to talk yourself up any more. Let other people do the selling for you! [here's a big $ million $ tip: you should add a page to your private money focused website that features testimonials]

 

Man, I'm excited just writing this!

 

This is something that you can put to work right away in your business to tremendous effect. In fact, if you don't take the time to do it you are just short-changing yourself in a major way.

 

-Happy Investing!

Ok. That's a lot to chew on. I hope you take it to heart. It's a shame how many real estate investors are missing out on a great time to scoop up real estate by letting the above things hold them back from getting the private funding they need. Eliminate these 5 deadly mistakes and watch your results change dramatically.

 

Happy Investing.