In part 1 of this article, we talked about the motives of money partners and how different they are. If you ignore that we all have different motives, you’ll miss a lot of prospective money partners and their money.
We also discussed the comm myth that, for your potential private money lenders, “it’s all about the ROI (return on investment).
Offering too high of returns can hurt your response.
At my first bootcamp on money partners, Joe Arlt shared his experience with some money partners that associated higher returns of 12-15% interest to more risk.
I’ve had the same experience. Some people don’t understand why you are offering such high returns and sometimes we shouldn’t.
You’ve been taught that you need to offer higher returns in order to attract money partners but that’s not true.
The premise behind this belief is that you have to “compete” with the banks by offering higher – much higher – returns to convince people to invest with you and your company.
Not only do some prospects associate a higher risk because of the return but it raises red flags that it could be a scam.
AARP and state organizations are always offering seminars and programs to teach seniors to be aware of investment advisors offering “high returns with less risk”.
“Isn’t ‘high returns’ supposed to be your money partner sales pitch?”
Then your sales pitch may need an overhaul.
Try a different approach to appeal to their emotional triggers. Offer moderate returns instead of being over the top. And seek out more sophisticated investors.
Find out more at my Private Money Bootcamp. I’ll give you my exact system for using “emotional triggers” to attract money partners. When you use them, ROI becomes secondary.
My best to you,
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…