Think and Grow Rich
Think and Grow Rich
The Science of Getting Rich
The Science of Getting Rich

Why Improve Your Raising Capital Presentation Skills?

I believe we all need to improve our businesses. The only way to do this is intentional reflection and forensic analysis. We all can learn a better way to look at our business to stay on top of our game. The best example of this was back in 2000 when the market opened up and anyone who had credit could get into a house.  I was using an old business model to screen tenants and respond to inquiries about my properties. I had to make a change quickly because the vacancies lasted longer than needed. I learned the lesson to stay on top of the market. If you become complacent your business will drop off.

In the last article, I wrote about sitting at the table with two sellers and working to get them to finance their house so I could renovate it. Then I would pay off the mortgage. It was a buy, fix, and sell. I will be using poetic license in referring to the “lender” as owner financing / private lending/ hard money. 

In this article, I will recap and explain areas I would change all future money presentations and ways to improve any presentation for the next time:

  • Know the motivation of your seller/ investor.

Drill into the motivation by asking a similar question 3 different ways. Drill into their concerns and find out what are their real needs.

  • Build more rapport.

Spend time getting to know the interests and dreams of the lenders.

  • Build more trust.

Share your experiences and values.

  • Talk in terms of their needs and pain points only.

Discuss what will make or break the deal.

  • Find out if they have any experience in investing in other vehicles.

Do they have all their current assets in traditional vehicle vs non-traditional ones?

After we have covered all their concerns and we can meet the needs of the prospective lender, then we will allow a win-win for all.

I have been on both sides of the borrowing and lending on the same day.  I have a clear picture of the way lenders want to be treated. They want to know the money will be paid back. They want to know they will not lose their money. They want to see that they will come out better in the long run if they can delay their gratification for a short period of time. Make sure the conversation is clear and the roles are spelled out for the people in the transaction. If you are pitching a loan to a lender but the borrower is someone else, you need to make this clear. If you are the one borrowing the funds for an investment then you will want to make that very clear. When we are going to borrow the money from a lender, then loan it back out at a higher rate, this needs to be spelled out. We need to be able to make sure that the potential client understands the information we are giving them and that this information is what they care about.

 I have been in a few “asking for money presentations” in which the only concern is the interest rate the lender will get back. Once that was established the conversation ended.  This is a best case scenario, but does not happen often.  Most lenders want a whole lot more data. 

If all we talk about is our experience and how great we are, the lender will quickly move onto other avenues. I believe that borrowers bring baggage into the relationship. There will be changes and situations which will come up so the relationship should be one of communication. The borrowers believe they are paying too much for the opportunity and, they are not paying too much because the lender is taking a significant risk on the borrower.  This is a partnership. Each brings their resources to the table. If one doesn’t have the right resources then the transaction will not take place. When the lender doesn’t get their needs met the opportunity will disappear.

Improving your presentation skills takes careful reflection, learning from your past experiences, and seeking best practices from those in the industry who have a lot of experience and success.

Russ HinerRuss Hiner is an active real estate investor, coach and mentor. Russ is currently the leader of the Atlanta REIA Creative Deal Structuring Group and co-leader of the Atlanta REIA Mastermind Group. Russ also teaches several Atlanta REIA Workshops throughout the year on a variety of real estate investing topics such as Negotiations, Wholesaling 101, Wholesaling 401, Real Estate 101, Property Management and more.

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Rehabbing Your Way To Millions

In just about any real estate market I believe that there are a lot of great ways to make a fortune in real estate and one of those ways is to rehab and sell properties quickly. This is a strategy I implement on a daily basis in my own Real Estate Investing business.

There are some excellent resources for you to use to find vacant, ugly properties to rehab and sell in virtually any price range. One of those ways is to simply use targeted direct mail campaigns like I do to find motivated sellers of ugly vacant properties or estates.

This is a great way to find highly motivated sellers who need to sell quickly and there are great deals to be made for pennies on the dollar. Remember, your profit is made when you buy a property. 

Another strategy I use to find the owner of vacant ugly properties is to mail to a list of properties with delinquent taxes that belong to out of county or out of state owners. These lists are pretty easy to come by and I offer resources for these mailing lists and others when you invest in my Marketing System.

Another way to find great deals with ugly, vacant properties is to work with the REO departments of your local banks. REO means real estate owned properties. These are ugly, vacant properties that the banks have taken back for non-payment of the mortgage.

These banks are generally selling properties for forty to sixty cents on the dollar in order to get rid of them quickly. Generally speaking the banks want to get these ugly houses out of their inventory since banks are in the money business, not the house business. And there are more houses available through these resources than ever before due to our current real estate market situation.

You do need to be careful about the properties you are buying since you want to buy houses you can resell quickly, so there are some specific parameters I would suggest you follow. Here are examples of houses I would suggest you stay away from buying.

  1. Houses on busy streets
  2. Houses in war zones
  3. Houses with only two bedrooms or tiny bedrooms
  4. Houses needing more rehab than you can handle (like burn-outs)
  5. Houses which are functionally obsolete
  6. Houses on postage stamp lots
  7. Houses near or across from commercial areas
  8. Houses near or across from businesses or schools

The whole idea is to find houses you can rehab quickly and sell at

or just under full retail in order to sell them quickly, so you need to make sure the numbers work in order for you to get the profit you are looking for from the deal.

There are also specific things you want to do to make your house stand out from all the others in the same price range in order to get your house sold quickly; like really making kitchens and baths stand out, and adding inexpensive upgrades that homes in the same price wouldn’t normally have.

Some of these upgrades might include nicer hardware like faucets and showerheads, tile in the showers, nicer kitchen appliances, etc. Also make sure your house looks clean and attractive from the exterior. There are lots of inexpensive ways to accomplish this. These strategies will make your house stand out to the potential buyer and get it sold much more quickly.

For more information on finding motivated sellers for your real estate business and getting your houses sold quickly for more cash, make sure you visit Kathy Kennebrook’s website at www.marketingmagiclady.com.

Kathy KennebrookKathy Kennebrook is a speaker, author and has been actively investing in real estate since 1999, Kathy currently resides in Bradenton, FL and is known as the “Marketing Magic Lady” because she is the country’s leading real estate marketing expert on finding motivated sellers using direct mail.

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