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“What to Say” to Get Private Money (powerful money-getting script)

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30-second script for raising private money

By REI Bulletin guest writer, Patrick Riddle.

If you’re struggling to finance your real estate deals, private money may be the answer.

Private money is simply investment funds from an individual, any individual.

So, anyone who isn’t earning good returns from their investments – maybe they’ve lost money in the stock market, maybe they’re earning meager returns from CDs, bonds, or mutual funds – is a good private money prospect.

You, the real estate investor, offer a good return backed by discounted real estate, they lend you funds, and voila… private money for your deals.

Over the years (through trial and error), I learned what to say to literally attract private money… where you never come across as a salesman and never even have to ask for it.

I call it, “The Half-Minute Private Money Hook”. And it’s exactly what to say when someone asks what you do… to attract private money.

First, I’m going to go over the structure of “The Half-Minute Private Money Hook”. Then, I’ll give you a script that you can immediately put to use in your biz.

The Half-Minute Private Money Hook

There’s a four part structure…

Part 1 – Tell them what you do so that a second grader can understand

You really want to “dumb it down”. You want everyone you talk to about your business to be able to easily understand what you do, how you do it, and how “they” (the potential private money prospect) fit within the process.

Part 2 – Target pain points

Think about it… “What kind of pains do our prospects experience?”

Losses in the stock market, low returns from traditional investments, etc.

By targeting these pain points, you draw out the motivation in your prospect.

Part 3 – Give your big benefit

This is where you clearly tell them the service your company provides. You’ll see exactly what I mean in the script below.

Part 4 – Get a “yes”

In any selling situation, the more you get your prospect’s head moving up and down, the better.

My favorite “yes” question is “Does that make sense?”

This ensures that the person I’m talking to completely understands what I’ve just said and typically gets a “yes” response.

If the prospect is currently experiencing these pains and is motivated to find a solution, they’ll ask for more information…

… and that’s exactly what you want… other people asking you for more information on your private lending opportunities.

Powerful Money-Getting Script

Here’s an example of “The Half-Minute Private Money Hook”… customize it to suit your business model and niche.

“[Part 1] I’m <Your Full Name>. We buy, sell, and lease houses… and use cash from everyday people to do so.

[Part 2] Typically, we work with people who are frustrated with losses in the stock market, people who are sick and tired of low returns from traditional investments like CDs, bonds, and mutual funds.

[Part 3] We provide excellent investment opportunities backed by real estate.

[Part 4] Does that make sense?”

Now, take this script and use it to attract private money for your deals..

If I can help with any questions, toss ‘em in the comment area.

-  Patrick Riddle

(For a recent video post from Patrick on raising private money, click here.)

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  • http://www.HugeProfitWholesaleDeals.com Ryan

    Thanks for the script Patrick! The one I use is pretty much the same. Private money is definately the way to go.

    Ryan
    http://www.HugeProfitWholesaleDeals.com
    http://www.HugeProfitWholesaleDeals.com/PrivateLending

  • Ricky

    Yes, the old “backed by Real Estate” attracts investors. But having to liquidate a property to protect their investment makes no business sense. Plus at what interest rate are the investors making? 8% yearly isn’t anything to sneeze at.

  • Todd Mcnish

    I’d like to know the answer to the question on how much will the investors will be making ??
    I’ve heard from 6% to 12% ?? Please explain in detail.
    How does that affect our profit ??

  • Ibm_60

    Yes Patrick I have always beleved that an investor would be very happy with 6% for the first six mounths 8% per year. You just can’t find that kind of returns for your money in today market. Think about it, if you had the money to invest where could you get this tipe of returns and at what resk!!!
    Thank Patrick for informing everyone you are a grate teacher.

  • Pingback: Why Private Lenders Back Out… And What To Do About It | reibulletin.com

  • rachel

    I’d like to pay the private lender by the end of the term, like 6 month. How shall I say it ? what do you do usually? 

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