5 Mistakes to Avoid at Private Money Appointments
When it comes to obtaining private money, I’ve had some very successful appointments, and others that were not so successful. In the process, I’ve learned some simple things you can do to drastically increase your results or completely ruin your chances of obtaining private money.
Are you guilty of these big “don’ts” in your real estate financing strategy?
Avoid These 5 Mistakes at Private Money Appointments
1) Having a Negative Attitude
There is no substitute for a good attitude. I love Henry Ford’s quote, “If you think you can do a thing or think you can’t do a thing, you’re right.” If you think you can get private money for your deals, you’ll get it!
2) Meeting in a Bad Location
While it may seem like a good idea to give a presentation over lunch or dinner, I’m not a big fan of this. I think it detracts from the purpose of the meeting. However, other investors have been very successful presenting over a meal… just try it out and see if it works great for you… if it does keep doing it!
I think some better locations for your private money meetings are:
- Your Office or a Conference Room
If you don’t have one, ask an associate (title company, attorney, accountant, etc.) if you could use one of their rooms.
- Coffee Shops
I love these for presentations and have done countless presentations at Starbuck’s! A coffee shop is a “neutral” place so the private lender prospect doesn’t feel threatened that they’re on your turf (in your office). And if you meet at a coffee shop… offer to buy your prospect a drink or snack.
- Prospect’s Home
The prospect’s home is another good alternative. This could make it easier on your prospect, which may help to get the appointment.
3) Appearing Messy
Before you leave for your appointment, check your appearance. Clean cut, well groomed, and professionally-dressed is best.
Make an effort to dress at or above the level at which your prospect will be dressed. I definitely don’t think a suit is necessary, but if that’s what you feel comfortable wearing, go for it.
4) Being Late for your Appointment
For God’s sake, don’t be late to your appointment! I suggest arriving at least 10 minutes early. You want to have a few minutes once you get to the meeting location to breathe deep and gather your thoughts.
Also, first impressions are important, and you want your potential, private-money-lenders to see you as professional and responsible.
5) Acting Like a Know-it-All
While you need to be confident, don’t go too far. It’s o.k. not to know everything!
If someone asks you a question that you’re unsure about, simply say, “Great question. You know what… I want to make sure that I’m 100% right before I answer that. I’ll make a note of it and get back to you soon.”
Now you know what not to do when getting private money for your real estate financing strategy.
If you are new to getting private money and having a real estate financing strategy, these tips will help you be more successful. Over time, these meetings will be second-nature to you, and you’ll have more private money to accomplish your real estate investing goals.
Do you have any tips you’d like to share with others? Please let us know below.
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