Private Money Partnering

Presenting The Deal

Chapter K. (continued)

What You Say Makes A Difference
Words To The Wise

Forms:
Flip chart Presentation
Flip chart Presentation With Script

What You Say Makes A Difference

Keep it simple and clear; a confused mind never says yes.

Learn the science of asking questions, and prepare the right ones to move the interaction along.

Remember that the prospect seldom really ears all your benefits or sales points, and will simply stop listening somewhere during the presentation.

Be specific. When you’re talking to somebody about money, be very specific about when you'll need how much money, and for what. For instance, you'll need $15,000 to cover purchase expenses, and an additional $10,00 for fix up, plus money for utilities, and resale costs. You'll need to state that clearly and directly. Are you going to ask for up-front money for putting the deal together, or management money? If so, how much is fair, given your level of experience and the quality of the deal?

Express things in terms of what they will get.

Be careful about using the word “profit” up front in asking for initial
moneys for yourself, because profit doesn't happen until it’s over. Use the term “transaction funding” or “discretionary operating funds” for up-front fees, or other moneys received on the front end.

Involve them early in the presentation, especially by addressing them by name.

Tell a story about how you helped someone else, without using exact names.

Tell about other projects you've done.

When you’re talking to somebody, sometimes it works better to present their profits in actual dollars, rather than percentages or rates or returns. And again, you have to figure out what it is that will help them understand your deal.

During your presentation, if you talk about a specific feature, or
detail of this particular deal, tie that with a benefit of what having
that particular feature means. A feature is what something is, and
a benefit is what you get out of it, or the result of that feature,. Let
Me give you an example. If you’re making a presentation to
someone about a proposed rental house, the fact that it features 3
bedrooms and is on a bus line is interesting, but more important is
that these features create the benefit that it will be easier to rent,
resulting in less vacancy. If you’re talking about a house to rehab,
the fact of needing only paint and carpet makes it an attractive
deal, because it creates the benefit of fewer fix-up dollars needed and a shorter time frame for putting it back on the market. So you connect all the features with the benefits that you think will make sense to that particular money person.

Emphasize that you’re looking for long-term relationships, and this deal is the first of many to come.

Don't tell them everything. Two reasons: first, information overload; people can't absorb it, especially non real estate people, and second, you'll want to hold something in reserve, so that if they come to you with a question, you’re the constant expert.

Presenting The Deal - Chapter K (continued)