If not, you must be a lot younger than me. Today’s popular detective shows are CSI, Law & Order and Bones and they all have something in common when solving crime.
Yes, this has to do with finding money partners. Stay with me…
The new shows strut the new technology in fighting crime that Columbo and Kojak could have never dreamed of. Yet the old guys could still solve the case because crime is crime. And it has the same elements today.
In order to develop a list of suspects, the detective will look for a couple of things – opportunity and motive, the common elements. Whether they are fighting crime today or in 1978, the detectives will look for the motive to develop a list of most-likely suspects.
Motive isn’t the same for each perpetrator of a crime. Sometimes it’s revenge, money or hate. It’s different for each criminal and it’s different for each money partner.
Do you see where I’m going?
Let me show you…
Myth: It’s all about the ROI (Return on Investment)
One big mistake often made in seeking money partners is believing all prospective money partners have the same motive.
So why are you doing what you do?
Why are you only appealing to those investors that want a high ROI? If you’re simply offering 15% interest-only payments, you are missing out.
In my private funding bootcamp we recently reviewed a syndication case-study. Before we reached the end of the case-study, revealing the ROI, an attendee (Acer) spoke up and said,
“You mean the ROI is only 7%? That’s it?”
Yes, the ROI was only 7% – so what?
Acer, like most people, was surprised at the idea that a money partner could be satisfied by the mediocre return.
The group funding this commercial project was comprised of white collar professionals. And yes, they are very happy with the 7% ROI. Their motives are not the same as other money partners.
Money partners are people. They are all different. They all don’t expect huge returns. Sometimes they just want to be a part of something. Other times, it’s enough for them to drive by and say, “I own part of that strip center.”
…That’s why there’s rocky-road ice cream and butter-pecan ice cream….
…That’s why there’s Bayliner and Grady White boats….
…That’s why there’s McDonald’s and Ruth’s Chris restaurants.
Remember, we all have different motives for what we do… even money partners. Stop treating them the same and learn to trigger their emotional buttons to get them to invest with you.
When you do, you’ll find more rabid money partners willing to give you more money to invest.
Part 2 coming soon…
About Matt Scott:
Matt Scott is the nation’s top-expert on raising funds for real estate ventures. OPM (Other People’s Money) is a key to his success in real estate and he’s discovered that in order to become successful partnering with others, you must have more than one size wrench in your toolbox. By expanding OPM well beyond what anyone else imagined, Matt has created an event based on his success using OPM.
Matt gave up his employee status in May 1994 and is a full-time real estate entrepreneur with a Bachelor Degree in Accounting. His experience in the CPA firm made him realize entrepreneurs and investors are the wealthy not only in assets but in lifestyle and freedom.
Need private money for your real estate deals? Find out more about Matt’s next Private Money Event…