4)    Less is More

When you are first telling someone about your investment program, less is more! All you want to do is pique their curiously and get them into a formal appointment.

Do this by saying something like, "We buy houses and use cash from investors, just everyday people like you and me, to finance our deals. Our investors are typically tired of the volatility of the stock market and frustrated with meager returns from CDs and mutual funds. Our main service is to provide good returns to investors backed by real estate. Is that something that you would like to learn more about?"

Keep in mind that the goal here is to . . .

5)    Get the Formal Appointment

This is where you will present your investment program to the private money prospect. I've provided a link in my bio below where you can download a free customizable PowerPoint presentation to use when meeting with prospects.

Make sure that all decision makers are present when you have your appointment.  Good meeting places would be an office (if you have one), a coffee shop, or the prospect's home.

6)    Present Your Investment Program . . . Not a Specific Deal

It's much easier for someone to object to a characteristic of a specific deal than to an ongoing investment program.

If you present a deal, your prospect may not have the required funds, may not like the area or the property.

Once you sell someone on your investment program and you find out exactly what range of funds they have, timeframe available, and how they would like to receive their interest payments, you would only present deals that make sense to them.

7)    Following Up is THE Key to Building Your Investor Base

The reason that I've been as successful as I have with getting private money is because I followed up with people that I presented to until they invested with me or told me to get lost.

I would add people's names to my follow up list every time I had a formal appointment. Then, I followed up with them every time I had a deal that met their needs and goals.
There are three slides in the PowerPoint presentation that are titled, "Investor Evaluation." Make sure to write down the information that you elicit from asking the questions on these slides. That's how you will match up deals that you have on your plate with private investor prospects that you've met with.

Patrick Riddle has been a full time real estate investor for over six years, has done well over 100 deals, and has recruited over $6,000,000 in cash from private investors. He shares his knowledge and experience on his creative real estate investing blog. To get your free copy of the "How to Recruit Private Money Millions" eBook and PowerPoint presentation, go to http://www.mustknowinvesting.com/freestuff.html

Published March 12th, 2009

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